Job Offer Basics
What should you evaluate besides just the salary when you receive a job offer?
The full compensation package including benefits (health insurance, retirement match, paid time off).
What is take-home pay?
Your actual pay after taxes and other deductions from your gross salary.
What is one key habit that builds good credit history?
Paying your bills on time.
Why is starting to invest early advantageous?
Because time gives your investments more chance to grow (compound interest).
What is an emergency fund?
Savings set aside to cover unexpected expenses or income interruptions.
Why might benefits sometimes matter more than a few extra dollars in salary?
Good benefits can reduce your out-of-pocket costs (healthcare, retirement) and improve your net value of the job.
Why is it important to know your net income when budgeting?
Because your budget must be based on what you actually receive, not just the gross salary.
Why should you keep credit card balances low?
Because high balances relative to your limit can hurt your credit score and lead to high interest costs.
What should you do if your employer offers a retirement plan with matching contributions?
Try to participate and contribute at least enough to get the full match.
Why should you aim to build one early after graduation?
Because unexpected expenses can occur, and having a fund prevents you from relying on bad credit or loans.
If two offers are similar in salary but one has a retirement match and the other doesn’t, what’s the smarter choice?
Choose the one with the retirement match because that’s free money and a long-term benefit.
Name two fixed expenses and two variable expenses you should account for in your budget.
Fixed: rent, utilities. Variable: entertainment, groceries.
What is one spending behaviour to avoid even with a new salary?
Charging everything and never checking the balance.
If your employer doesn’t offer a retirement plan, what’s an alternative you should consider?
An IRA (Individual Retirement Account) or other personal investment account.
What is a realistic starting target amount for an emergency fund for new grads?
One to a few months’ worth of living expenses.
What is a good question to ask about your compensation package?
What benefits are included?” or “What’s the employer retirement match?” or “What’s paid time off like?
What is “lifestyle creep” and why should new grads be cautious of it?
When income increases and spending increases automatically; new grads should be cautious to avoid spending more just because they earn more.
How does responsible credit use help you later (for example renting or getting loans)?
A good credit history gives lenders confidence, usually results in better interest rates, and can make it easier to rent an apartment or get credit.
Why even modest contributions matter when you’re just starting out?
Because even small amounts placed early can grow significantly over time thanks to compounding.
How does putting money into an emergency fund connect to budgeting?
It’s a budget category — part of your income should go to savings/emergency fund before discretionary spending
How can negotiating benefits improve your job offer?
You can ask for better benefits (higher match, extra PTO, signing bonus) which may improve your total package without needing higher base salary.
What simple rule can you follow to build a realistic budget early after graduation?
List income → subtract fixed expenses → allocate for variable expenses → save/invest the rest.
What’s the difference between using credit as a tool vs being burdened by it?
Using it as a tool means spending within your means, paying off quickly; being burdened means carrying high balances, paying mostly interest, and risk of poor credit.
What piece of advice does the article give about investing that new grads often delay, but should actually start right away?
Don’t wait for “perfect timing” — begin investing even with modest amounts now.
What risk do you reduce by maintaining an emergency fund early in your career?
You reduce the risk of being financially vulnerable when an unexpected event happens (job loss, repair, medical, etc.).