My Definitions of financial products/services and how it applies after graduation.

Savings, Checking, and a line of credit are all important in your post graduate era. I feel it is important on how to appropriately apply these to your current stage of life. I will give a basic breakdown on how I applied these subjects.

Savings:
I am a firm believer in having safety net (or working towards one). I find that having 3 months worth of expenses saved up is a solid foundation. It may be hard at this stage to save up that much all of a sudden, but the fact that you are starting that savings account is a foot in the right direction. This safety net can be a life saver for those who may have a sudden career change or unexpected emergency. This sack of money is meant to stay in your account at all times (no shopping sprees or vacations should deplete this account).

Checking:
This is the account I considered my “available money.” Unlike the savings account, this account is actually used. Bills, groceries, and other expenses are all paid for from this account. Budget yourself so that you plan your monthly expenses and pay them off. The leftover money can be used to either build your savings account or for the occasional luxury.

Line of Credit:
This is a touchy one. Some may need this in order to pay off some high interest debt, or immediate large expenses (down payments, deposits…etc). Be sure to plan on having more than enough in your monthly budget to pay this. This is a great way to start building positive credit if you are easily able to afford this. Use this option sparingly.