4 Money Mistakes to Avoid as a New Grad

This blog post is all about the money mistakes to avoid as a new grad.

These are the money mistakes to avoid as a new grad — and trust me, I wish someone had warned me about them.

I know my blog mainly focuses on college, but my mission is to help first-gen students succeed beyond the classroom. And if I’m being real, post-grad life was way harder than all four years of college combined. No one really prepares you for what happens after the degree — especially when it comes to money.

But don’t worry — I’m not here to scare you. I’m here to break down the most common money mistakes I’ve seen (and made) after graduation, so you don’t have to learn the hard way.

So whether you’re a current college student, recently graduated, or just starting your college journey — stick around. Because eventually, you’ll face these decisions too, and being aware now could save you stress (and money) later.

Disclaimer: I am not a financial advisor, and this content is for educational and informational purposes only. Nothing in this post should be taken as professional financial advice. I’m simply sharing personal experiences and insights to help others think more intentionally about their money. Always do your own research or speak with a licensed financial professional before making major financial decisions.

Money Mistake to Avoid #1: That New Job Doesn’t Mean You Need a New Car

Buying a new car right after securing your first job out of college has to be one of the most common things I see — and honestly, I get it.

You busted your butt for four years (or more), probably walked or biked everywhere, or if you were lucky, drove your mom’s old sedan that she let you “borrow.” So now that you’ve got a full-time job and a steady income, it’s only natural to want to level up — and for a lot of people, that means a new car.

Let me be clear: I’m not saying don’t buy a car. Most places in the U.S. aren’t exactly public transportation-friendly — you need a car for work, errands, and literally just living.

But I am saying: be smart about what you buy.

The Dream Car Temptation (and the Financial Trap)

It’s easy to fall for a Lexus, BMW, or anything with a sleek logo. You deserve something nice, right? Yes, but not at the cost of your financial peace.

Let’s say you go for that dream car:

You’re likely signing up for hefty monthly payments (because let’s be real — no post-grad has $30K–$50K lying around).
Since you’re financing the car, you’ll NEED full coverage insurance, which is expensive AF.
Luxury brands = pricey maintenance at their specific dealerships.

And don’t forget gas — a lot of these cars are gas guzzlers, and you could be paying close to $100+ per fill-up.

Now imagine it’s six months later— you realize the monthly cost is draining you, and you want out…
But your car has already depreciated thousands in value, and you’re stuck paying for a car you don’t even want anymore. Yeah… stressful!

That’s why it’s so important to slow down before making big financial commitments after college. What feels manageable now might become a burden later.

The Smart Move: Reliable, Affordable, and Stress-Free

This is why I always recommend getting a reliable economy car — something that gets the job done without wrecking your finances.

If you can pay in cash, that’s ideal. You’ll skip monthly payments entirely.
If not, choose a car with low payments that won’t clash with rent, groceries, or your student loan payments.
You don’t need a brand-new car. In fact, I’ve seen 10-year-old economy cars with fewer problems and lower maintenance costs than newer luxury vehicles.
Less maintenance, cheaper repairs, and if it’s paid off, you can skip the full coverage insurance.

You can do whatever you want — it’s your money and your life.
I’m just giving you the real talk I wish more people had before signing up for years of debt over a car that lost value the moment it left the lot.

Money Mistake to Avoid #2: Grad School

Is Grad School Really the Move? (Let’s Talk About It)

Okay, this might be a little controversial, but I see so many seniors applying to grad school just because they’re not ready for the “real world.”

And listen — I get it.
Post-grad life is hard, especially when you’re no longer in an academic program. You lose that structure, that identity of being a student, and suddenly it feels like you’re behind if you’re not in grad school.

I felt that way too.

For the first two years after undergrad, I thought I was falling behind because I wasn’t in a master’s program. Now? I’m so glad I waited.

Grad School = Big Investment (with Less Help)

If you thought financing undergrad was a struggle… grad school is on another level. There are way fewer scholarships and grants available — and most students take on loans that are even harder to pay off.

Yes, there are people who get grad school covered by scholarships and grants, and yes — you can too. But I just hope you’ve really thought about why you’re going.

Because your education is an investment. And like any investment, it needs to be strategic, not just emotional.

Ask Yourself:

Is this grad program going to elevate your career, or are you applying because everyone else is?
Are you genuinely passionate about this field, or just scared of the unknown?
Can you see yourself in this career long-term — or are you chasing prestige and paychecks?

Because here’s the truth:
Degrees don’t guarantee fulfillment, and some of the careers that require a master’s or PhD can burn you out quickly if you’re only in it for the money.

You Don’t Need to Figure It All Out Right Away

Post-grad life can be scary — but it can also be a time to explore and figure out what lights you up.

You don’t need to have your whole life figured out right after undergrad. No one really does — even the people who act like they do.
Some of them are already regretting the grad programs or career paths they rushed into… and now they’re stuck paying off the student loans they took out to get there.

I’m not saying don’t go to grad school. I’m saying make sure you’re doing it for you — not because you feel pressured by society, your family, or the fear of figuring out something else.
Grad school will always be there. You don’t have to rush.
I almost applied for a Master’s in Sociology just because it felt like the “right” next step. But deep down? I didn’t want it — I just didn’t know what else to do.
So ask yourself honestly: Do I really want this, or do I just want direction and validation?

Money Mistake to Avoid #3: Not Having an Emergency Fund

Having an emergency fund is crucial — it’s that financial safety net that can really save you when life throws the unexpected.

And honestly? I hope you never have to use it. But if you do, you’ll be glad it’s there.

Aim for Months of Expenses

I recommend having at 3 to 6 months of essential expenses or whatever amount feels realistic for your situation. I’m not here to give strict financial advice, but I am here to say that life is unpredictable.

Emergencies can cost hundreds or even thousands of dollars. Whether it’s a medical bill, unexpected job loss, car repairs, or a family emergency, having that cushion means you won’t have to panic, swipe a credit card, or take on debt just to stay afloat.

Keep It in a HYSA

Make sure your emergency fund is sitting in a High-Yield Savings Account (HYSA) so it earns interest and doesn’t lose value over time. Don’t let that money sit in a basic savings account earning pennies — let it grow quietly in the background.

First-Gen Reality Check

As a first-gen student or graduate, a lot of us don’t have a financial backup. Our parents can’t always help us out if something goes wrong — which means we have to be our own safety net.

That’s why building an emergency fund is one of the smartest things you can do for your future self.

Money Mistake to Avoid #4: Thinking Networking Doesn’t Work

When they say your network is your net worth, they really mean it!

As a first-gen college graduate — and maybe even the first in your family to have a “professional” job — you’re now stepping into spaces where you’ll meet people in careers you may have never been exposed to before. It’s a big deal.

That’s why I always encourage learning how to have professional conversations — not the robotic kind, but the kind that shows curiosity, confidence, and authenticity. That’s how you grow your network.

Why is networking important?

Because it can expose you to:

Higher-paying jobs
Careers you never considered
People who can open doors or elevate your growth

There’s no downside to networking — only to not networking, or worse, not utilizing the network you already have.

As first-gens, we’re often told, “work hard and it will speak for itself.” But the truth is: it only speaks when you’re in the right rooms and you’re willing to talk about it — in a humble, intentional way.

Yes, your skills matter. But communication is a skill too — and it’ll take you places hard work alone can’t.

Here’s what I’ve learned:

Networking isn’t just about “getting ahead.”
It’s about building a community that opens doors you didn’t even know existed.

We don’t always have built-in mentors or connections — but we can create them by:

Showing up
Asking questions
Being intentional
And always following up with gratitude

And never underestimate the people around you. Be genuine and talk to everyone — whether they’re one step above you, at the same level, or even technically “below” you. Those are often the people who will look out for you, speak your name in rooms you’re not in, and connect you to opportunities others won’t.

Because sometimes, it’s not what’s on your résumé — it’s who knows your name when that opportunity comes up.

Final Thoughts: Money Mistakes Happen — Just Don’t Let Them Repeat

These are some money mistakes to avoid as a new grad — and I hope this blog post helps you skip the stress (and the thousand-dollar regrets) by learning from what I’ve seen and experienced firsthand.

Of course, I’m not here to tell you what to do. I’m just sharing what a lot of people end up regretting financially after graduation — and giving you a chance to move differently.

And if you’ve already made one (or more) of these mistakes? It’s okay! That just means you’ve already started learning. Mistakes don’t define you — they refine you. The fact that you’re reading this post, reflecting, and trying to be better? That’s a major step toward being a financially wise, self-aware adult.

As a first-generation college student myself, I’m honestly proud to say that I either avoided these pitfalls, or I lived through them and came out smarter on the other side. And that’s why I share this — because for a lot of us, our parents can’t give us this kind of advice. Not because they didn’t want to, but because their experience was so different from ours.

So if no one told you before:
You’re doing great. You’re learning. And you’re not alone.

If you enjoyed this blog post about money mistakes to avoid as a new grad, check out my other blog posts about money!