Illinois CPA Society teaches 'Real World Survival' skills

This time of year, colleges and universities across the country are turning the tassels on thousands of new graduates and sending them off into the workforce. While finding a job is top-of-mind, it is equally important for these new grads to be smart about the money they will earn. Understanding how to balance a new salary with life's necessities -- the roof over your head factor -- and still have a life, is an essential ingredient to "real world survival."

Students are leaving school with more debt than ever. Many college students are leaving academia with a diploma and $20,000 in combined student loan and credit card debt, making it increasingly important for young adults to develop sound money management skills right away.

An important step when finding that first job is to understand how much money you will actually take home (gross vs. net pay). For example, after taxes with an annual salary of $35,000 (gross pay) you are only taking home about $27,000 (net pay) and that doesn't include deductions for things like health insurance or a 401(k). Next, develop a budget with your monthly take- home pay outlining fixed expenses -- goods and services you cannot live without (e.g., rent, groceries, student loans, etc.) -- and variable expenses -- goods ands services that enhance life, but are not necessary (e.g., cable TV, expensive haircuts, etc.). A budget is an important tool to help prioritize spending and manage money -- no matter how much or how little you have.

The Illinois CPA Society is helping students confront these money matters with its "Real World Survival: Having a Ball on a Budget" program. The program is presented by members of the Society's Young Professionals Group who visit college campuses across the state to provide students and soon-to-be-young professionals with basic information and tips on how to successfully deal with their finances while still having fun. The program takes students through a sample budget and talks about how to pay rent, go to a concert and eat on a starting salary. It also stresses the importance of making good decisions and provides everyday practical tips to stretch those dollars and help save for the things you really want. Following are a few examples:

  -- Reward Yourself: Chances are, if you work in an office there is coffee
     brewing for free. If you take your office up on their free coffee and
     passed on buying that daily latte and reserved it to one day (e.g.,
     "Fancy Coffee Friday"), you could be saving about $18 per week, which
     adds up to $72 per month that you could put towards student loans or
     savings. Plus, a latte packs in almost 500 calories.

  -- A Night Out: The temptation to go out with your friends almost nightly
     is huge during the first couple years you are out of college. Instead,
     create a regular night that you all can get together. Make it fun like,
     "Tip 'Em Back Tuesdays." There are typically more food and drink
     specials during the week -- bar specials are not just for college
     students. That way, you can estimate how much a night out will cost and
     not constantly spend on entertainment. You can save a lot of money by
     cutting your restaurant tab a bit and eating in.

  -- It's the Little Things: The little things in your daily life that you
     don't even think about can save you money and stretch your dollars. For
     example, don't purchase premium cable channels until you get a
     promotion, then treat yourself to HBO. In the meantime, watch
     "Entourage" at a friend's place.

"As today's grads leave school, many are consumed with finding the right job and a good paycheck," said Elaine Weiss, president and CEO of the Illinois CPA Society. "Mom and dad aren't there to pay the bills anymore. Learning to navigate the real world of student loan payments, credit, insurance, rent and the jolt from your first electric bill is overwhelming, and sometimes more challenging than learning the ropes at that first job."

The Society is continuing its statewide programs this spring and will visit the University of Illinois at Chicago (UIC) on Tuesday, May 1, 2007. The program will take place from 5:00 p.m. - 6:00 p.m. at the University of Illinois Alumni Association in Room 509, Student Center East located at 750 S. Halsted Street, Chicago, IL, 60607.

About the Illinois CPA Society

The Illinois CPA Society, founded in 1903, is the fifth-largest state CPA society in the nation, with more than 22,500 members. It is the only professional organization that represents CPAs in Illinois. During its over 100 years of existence, the Society has advanced the highest ethical and financial standards of the profession, and has been a leader in educating the public on financial issues.

Source: Illinois CPA Society

Web site: http://www.icpas.org/