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If you graduated from college this spring, chances are the past few months have been full of new adventures — and a lot of adulting. And if you took out federal student loans, it’s probably starting to feel even more real now that your first payments are due.

After you finish school, you get six months before you have to start paying back your student debt. Once that transition period has lapsed (it just did if you graduated in May,) you’ll want to get started on the right foot — with both your student loans and the rest of your finances.

First off:

•  Make sure you know which company is handling your bills. (The government assigns a “loan servicer” to every borrower.)

•  Check your monthly payment amount to determine whether you’re on a repayment plan you can afford. The standard repayment plan is based on the size of your balance, but you can opt for a plan based on your income instead. Use the government’s online loan simulator to compare monthly payments under different plans.

  (Note: There have been a lot of changes in repayment plans the past few years, and more are coming. The Education Department posts updates here, and SoFi is tracking it all too.)

•  Consider setting up autopay to avoid being late on payments. Paying on time — every time — will help you protect your credit score and mean one less thing to stress about as you’re figuring out post-college life.

But whether you have student loans or not, the habits you build right now can set you up for years to come. These basics will lay the groundwork for a strong financial footing.

Strategies for saving and spending after college

Aim to pay your entire credit card balance every month. While there may be times when you can’t pay your full balance (life happens), making this a habit can save you a lot of money on interest.

A budget or spending tracker (we like SoFi’s) can help keep you on target, showing you exactly where you’re spending. If you’re looking for a simple starting point, consider the 50/30/20 rule (50% for needs, 30% for wants, 20% for savings).

Prioritize emergency savings. Having money saved can help you avoid taking on high-interest credit card debt if something goes sideways and you have an unexpected expense or loss of income. The general rule of thumb is to have enough money saved to cover three to six months’ worth of basic living expenses, but even starting small can help. If you can only put away $20 a paycheck right now, that’s a great place to start.

Let autopilot be your friend. It’s a busy time in your life, with a lot to figure out. The more you can automate, the easier things can be. Whether you set up recurring transfers to savings, automatic bill payments, or just regular alerts/reminders, the goal is peace of mind that you won’t lose track of the important stuff. (Just review your bills to make sure there aren’t any mistakes.)

Consider saving for your future sooner rather than later. The earlier you start investing in a 401(k) or IRA, the more your future self can benefit. And it’s not a linear progression. When you invest your money, you give any money you earn from it a chance to earn even more money. It’s called compound growth, and the longer you give it to work, the more powerful it can be.

A quick example: If you add $200 a month to your 401(k) for the next 40 years, you’d end up with about $525,000 if your investments earned 7% a year. (There’s no saying what you’ll earn, but 7% is the average annual return for the S&P 500 historically, adjusted for inflation.) But if you wait 10 years to start, giving yourself just 30 years to invest before you retire, the same monthly contribution and annual return would leave you with roughly $244,000 — less than half that amount.

(Bonus tip: If you have an employer that offers a 401(k) match, that’s yet another reason to start saving. It is, quite literally, free money.)

So what?

You don’t have to have it all figured out to build healthy financial habits that stick. But you do want to avoid regrets. (Virtually all Gen Xers in a recent CFP Board survey regretted something, with almost half estimating their financial missteps cost them at least $100,000.)

To lay a strong financial foundation, be responsible, be proactive, and keep it simple. And remember, if you’re young, time is on your side.

Related Reading

Why It’s So Hard for Gen Z to Find a Job Right Now: ‘None of Us Are Really Thriving’ (CNBC)

The One Financial Move in Your 20s That Can Make You a Millionaire Later (Investopedia)

Do Student Loans Help Build Credit? (SoFi)

*Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligiblity. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS \#696891 (www.nmlsconsumeraccess.org).

SoFi SmartStart Loan: Eligible only for 7, 10, 15, and 20 year loan terms and fixed rate. Not available to borrowers in the Medical Residency ReFi program. Must meet creditworthiness requirements. Learn more at sofi.com/eligibility. During the interest-only period, your minimum monthly payments only pay accrued interest and do not reduce the loan principal balance on the SmartStart loan. After the interest-only period, your minimum monthly payments will increase for the remainder of the loan term to pay principal and interest on a conventional amortization schedule. You are only eligible to take a SoFi SmartStart loan one time as a primary borrower.

Interest-only for First 9 Months Repayment Plan: Repayment plan is available for fixed-rate loans only. For the initial 9-month period, monthly payments will be interest-only, with no reduction in the principal balance. Following the 9-month interest-only period, monthly payments will consist of both principal and interest for the remainder of the loan term. A 5-year term is not available for this offer. Choosing this option may result in a higher total loan cost compared to making full principal and interest payments from the start.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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What a Buy

Typically, I’d start a Fed column by discussing the rate move. This time, I’m going to start with what I believe is the more important part of today’s announcement.

Starting on Dec. 12, the Federal Open Market Committee will start buying Treasury bills again at a rate of $40 billion/month. This will last until April, when the rate of purchases will possibly come down to $20-$25 billion, according to Chair Jerome Powell.

Since this newest round of Treasury buying is coming only 11 days after the latest quantitative tightening (QT) effort ended, the message seems to be that the Fed tightened too far and needs to reverse course in order to support market liquidity.

That’s not to say that there is an obvious or broad reaching liquidity problem affecting stocks. At this point, there is not. But overnight funding markets (banks borrowing from each other and banks borrowing from the Fed) have shown recent signs of funding stress that likely led to this about-face.

For example, greater usage of the Fed’s standing repurchase facility — a backstop that allows banks in good standing to exchange Treasurys for cash overnight — suggests more banks are short on cash.

Standing Repo Facility Usage

Another force at play is the level of bank reserves. We spent most of the past three years in “abundant reserve” territory, but now we’re down to “ample reserve” territory, thanks to QT and a reverse repo facility that could no longer absorb it.

Although ample is where the Fed wants reserves to be, I believe they actually started to flirt with “scarce,” which required the Fed to act. Though there’s no specific threshold, the Fed starts to take notice as the spread between interest on reserve balances (dashed magenta) and the effective funds rate (blue) narrows.

Benchmark Interest Rates

Powell downplayed this T-bill purchasing announcement by explaining that:

•  engaging in some Treasury buying was the plan all along,

•  expanding the balance sheet regularly is necessary to support bank reserve balances, and

•  the Fed is trying to get ahead of April 15, when reserve balances drop temporarily because of taxes being paid.

The Fed is calling this move “reserve management purchases” to signal that this is not intended as a form of quantitative easing (QE).

Is That Good or Bad?

It’s complicated. The market liked it, the 2-year Treasury yield fell 10 basis points, and the S&P 500 finished in the green, with economically sensitive sectors such as Industrials, Materials, and Consumer Discretionary performing the best.

In the near-to-medium term, I think the message is bullish for stocks and short-term Treasury bonds. I also take this as an indication that the Fed is ready to engage in classic QE if it should become necessary. Given markets’ dependence on Fed driven liquidity, this is likely to be seen as a friendly move for risk assets.

However, it also runs the risk of stoking inflation and feeding more speculative behavior in markets. The effect is likely to be multifaceted.

Looking Ahead

A new Fed Chair will take office in May, and as of now we can only expect Powell’s replacement to be dovish on rates, which would align with the administration’s well-published wishes.

Outside of rate expectations, the Fed gives us a summary of their projections once per quarter. Today’s meeting included an update to those projections, and the tone was quite positive. Compared to its statement in September, the Fed expects 2026 growth to be stronger, inflation to be cooler, and unemployment to remain steady.

Fed Summary of Economic Projections for 2026

Given this picture, and the expectation for further (though not imminent) rate cuts, it’s difficult to be negative on the market or the economy. Despite the Fed acknowledging concerns about the labor market, officials seem confident that weakness can be stymied by supportive policy and a stable growth environment.

The consensus view right now is widely held across investors: There’s general positivity that growth will reaccelerate in 2026, the consumer will keep spending, inflation will stay contained, and markets have potential to produce attractive results, once again.

Sometimes, everyone thinking the same thing is a warning sign. But other times, the consensus view is right.

Want more insights from Liz? The Important Part: Investing With Liz Thomas, a podcast from SoFi, takes listeners through today’s top-of-mind themes in investing and breaks them down into digestible and actionable pieces.

SoFi can’t guarantee future financial performance, and past performance is no indication of future success. This information isn’t financial advice. Investment decisions should be based on specific financial needs, goals and risk appetite.

Communication of SoFi Wealth LLC an SEC Registered Investment Adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov. Liz Thomas is a Registered Representative of SoFi Securities and Investment Advisor Representative of SoFi Wealth. Form ADV 2A is available at www.sofi.com/legal/adv.

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This article appeared in SoFi's On the Money newsletter. Not getting it? Sign up here.

The annual fee on your premium credit card has jumped to ~$800 or $900, and you have a decision to make.

Premium cards are premium for a reason, offering things like $300-$600 annual travel credits, special airport lounge access, and often, some cachet.

But Chase and American Express raised the fees on two of the most popular elite cards this year — and not by a smidge. The Chase Sapphire Reserve went from $550 to $795, and the Amex Platinum Card jumped from $695 to $895.

So the question is: Are you still getting your money’s worth? (Meaning enough perks you actually use?) And if you’re thinking about getting one of these cards, how do you decide if the price is worth it?

How to decide if the fees are worth it

Premium cards can pay for themselves, and if it’s a card you already have, your statements will tell you a lot. Add up the value of the benefits you got over a year’s time to see if you at least earned your annual fee back.

There’s more guesswork involved if you don’t have the card yet, but you can still estimate what you’ll use. If that subscription to Apple TV/Music, Uber Cash credit or DashPash membership are the draw, add up what you’d pay for those otherwise.

•  Keep in mind: The “card value” touted on an issuer’s website may be in the thousands, but very few cardholders cash in on all those perks, and some are difficult to earn. For example, the $300 dining credit on the Sapphire Reserve can only be used at participating restaurants in certain cities, which could make it useless to people who don’t spend time there.

Beyond the basic math, there are other important considerations. Start with these questions:

Has the card outlived its usefulness? Premium cards tend to have travel-centric perks. If you got the card to score a valuable welcome offer or other bennies for your big trip to Europe, is it still worthwhile a year later? A downgrade may be in order if you don’t have similar trips on the horizon.

Did you carry a balance this year? You want to avoid interest charges on any credit card balance, but they quickly erode the value of a premium card, effectively cancelling out the rewards. Most of us have needed to regain our financial footing at one point or another, but if you can’t afford to pay off your balance in full each month, you’re better off without it.

Do you enjoy playing the rewards game? If you want to milk the value of your card, you have to play the points and perks game. That means remembering to opt in for statement credits, comparing point values across partner airlines and hotels, and scooping up limited-time offers. It can also require paying for different items with different cards (to maximize the rewards.) If these sorts of things give you a headache, go with a card that has a simpler rewards structure and lower fee.

Is status the allure? Part of the draw of premium cards is the exclusivity they bring. You get to be part of a secret metal card club that may feel like it comes with a “backstage pass” to luxury. But 21% of cardholders now carry at least one premium credit card, according to PYMNTS Intelligence. If you think you’d find those airport lounges too overcrowded to be enjoyable, it’s worth reconsidering.

If you’re a new cardholder, will you spend enough to earn the welcome offer? The sign-up bonus is often what tips the value equation for a new cardholder. But securing it requires meeting minimum spending thresholds. To earn 125,000 points with the Sapphire Reserve you must spend $6,000 in the first three months. The Platinum Card requires $8,000 in the first six months. If those amounts sound out of reach, these are not the cards for you.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.

The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.

SoFi isn't recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

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