The Illinois CPA Society Shares Money Management ABCs With Grads

CHICAGO, May 28 /PRNewswire-USNewswire/ -- It's that time of year again when new grads step up to receive diplomas as proof of their book smarts, but what about one of the most important life lessons -- money management.  The Class of 2010 has endured a tough economy, so hopefully, they're wiser for it, knowing they need to be more money smart than ever and take personal responsibility for their finances.

The Illinois CPA Society wants young adults to understand a secure financial future doesn't just happen - if you work for your money than you need to make your money work for you. To get graduates started in the right financial direction, the Society shares these basic ABCs of money management:

A - Always save something. No matter how small the amount, put aside some money on a regular basis. Start the saving habit now; save early and often so your money can grow throughout your lifetime.

B - Budget, budget, budget. Yes, it can be tedious, but find a way that works for you to track earnings and expenses whether it's online or with a pencil and paper. Don't worry if it's not perfect, just have a budget so you know where you stand financially, update it frequently and stick to a plan.

C - Control your credit.  According to a national study done last year by Sallie Mae, the average undergraduate carried more than $3,100 in credit card debt. So if you already have credit card debt, determine a way to pay it down and don't add to it. A poor credit history can hurt your ability to buy a house, car or even your chances of getting a job; also know what's on your credit report and understand how your credit score is determined.

D - Don't buy what you don't need, don't spend what you don't have. Think twice before you make a purchase whether it's as small as a new wallet or as large as a car. Ask the hard questions - do I have the money, and even if it is available, could it be better spent elsewhere or saved - about all your expenses including entertainment, vacations and hobbies. Learn to distinguish between what you want and what you really need.

E - Educate yourself.  With so much knowledge at our fingertips, it's as easy to be informed about money matters as it is to learn about sports or celebrities. The time you spend now learning the financial language you'll need to maneuver through leases, credit card agreements, loans and bank statements will save you money and financial headaches later.

Graduation is the perfect time to start thinking about the future. And a future with some financial security requires having a financial plan with realistic long and short-term goals and the will power to make tough decisions to achieve them.  A CPA can help with the details of a good financial plan and serve as a guide through major financial decisions throughout your lifetime. The Find a CPA Directory can be found on the Illinois CPA Society site - www.icpas.org - along with more information about money management.  

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 24,000 members. It is the premier 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