Moving Out: As Uneasy As 1-2-3
Soon, university arenas will be filled with the sights of gown-clad grads and mascara-covered cheeks, and the sounds of whooping families amidst a loop of Pomp and Circumstance. Graduation season is among us. And with it arrives a risky and defining moment for young people across the country: moving out.
For the last several years, your child has likely been living in two worlds: the semi-independence of college living and the backup plan of a lasagna dinner or load of laundry at home. Now, that’s all about to change.
The life lessons waiting in the wings are countless, but a few timely and important reminders will help your child start their adult life on the right foot.
1. It’s Payback Time (for Student Loans)
The moment the diploma enters your graduate’s hand is the moment the student loan clock begins to tick. Those with subsidized Stafford loans likely know that interest has been deferred into the future. What they may not know is exactly when that grace period stops. The answer? In six months. Six months after graduation, you’ll need to start making payments. If you don’t know already, now’s a good time to find out exactly how much you owe and how quickly you can afford to pay it all back.
2. Renting your first apartment requires a good chunk of change.
Moving out is a lot more expensive than living independently? Say what?! Yes, that initial shift will cost you more than you’ll be paying in the typical month moving forward. How’s that? Many landlords require first and last month’s rent plus a security deposit before they’ll hand you the keys. Before you think “I can afford X-dollars per month,” consider the hidden costs of that first payment.
3. Don’t take health insurance for granted.
For most college kids, thought given to medical coverage is nonexistent. Most young people see themselves as invincible, their health insurance card as a benefit without a cost. And for many, it is. Until they turn 25. If their parents are willing to keep paying for their coverage, they have a couple years left to get their sea legs. If not, it’s time to get familiar with a few words: deductible, in-network, and HAS.
Looking for more resources about moving out? Biz Kid$ filmed an entire episode on the matter: Movin’ on Out.