Isn't That Rich Podcast

Graduating is a huge accomplishment. Whether you just walked across a high school stage or turned your college tassel, you're probably getting hit with the same big question: Now what?

For most of us, school never really taught us how to manage money. Maybe you learned a little bit about supply and demand in economics or filled out a mock tax form once - but no one sat you down and explained what to do when your first paycheck hits your bank account, or how to pick a checking account that won’t quietly drain your balance each month. That’s what this post is for.

We’re walking you through what really happens when you graduate, and how to set yourself up financially so you’re not broke by the 20th of every month—or relying on your parents to Venmo you for groceries. From choosing the right account to understanding your credit score and setting up your first investment, consider this your graduation gift from us.

Start With the Right Bank Account

One of the first financial steps after graduation is to make sure you have the right checking and savings accounts in place. If your current account is one your parents helped you open when you were younger—or if you just chose whatever bank was closest to your college campus—it’s worth hitting pause and taking a fresh look.

Not all accounts are created equal. Some still charge monthly fees just to hold your money. Others offer no benefits, no interest, and make it hard to access your cash when you’re away from home. As a new grad stepping into financial independence, you need a bank account that works for you, not against you.

Let’s start with checking accounts. The ideal account is free, gives you flexibility, and maybe even rewards you for spending. That’s why we recommend the Kasasa Cash Back Checking account at Farmers State Bank. It’s built for real life and actually gives you cash back—3% on everyday debit card purchases, up to $7.50 per month. That’s $90 a year back in your pocket just for doing what you already do.

You also get up to $20 in ATM fee refunds every month, no matter where you are. So if you move away from home or your college town, you won’t get dinged with fees every time you need cash. And unlike some other cash back or rewards programs, there are no category restrictions—so whether you’re buying groceries, gas, or your daily coffee, your spending still counts.

Even if you don’t meet the monthly qualifications (12 debit card purchases, one direct deposit, enrollment in eStatements, and one mobile or online login), the account remains completely free. No penalties. No gotchas.

Pair your checking account with a Kasasa Saver and you can earn 1% APY on your savings up to $10,000. Even better, your cash back earnings can be automatically transferred into your savings each month. You’re building a habit and growing your savings without even thinking about it.

Now let’s talk about something a lot of people forget after graduation: who’s on your account.

If your parents helped you open your original checking or savings account when you were under 18, chances are they’re still listed as joint owners. That means they legally have access to your money—they can log in, see your transactions, and even withdraw funds.

For some people, that’s not a problem. But for others, it’s time to take the training wheels off and make the account truly your own. This is your life now. Your rent, your groceries, your budgeting decisions. You deserve to do it without oversight—even the well-meaning kind.

If you're ready to take that step, it’s as simple as opening a brand new checking and savings account in your name only. And when you do that, don’t forget to add a beneficiary.

Adding a beneficiary is one of the easiest and most overlooked steps in setting up a new account. It just means naming someone who would receive the money in your account if something were to happen to you. It doesn’t give them access to your funds while you’re alive. It doesn’t let them see your purchases or make withdrawals. It’s just a legal safeguard to make sure your money goes to the right person—without going through probate or getting tied up in a complicated court process.

It takes five minutes, and it’s one of the most grown-up decisions you can make. You can add a parent, sibling, partner, or anyone you trust. And if life changes, you can update it any time.

So to sum it up: set up a checking account that works for you, automate your savings with a connected Saver account, remove old joint owners if needed, and add a beneficiary. These are the basic building blocks of adult banking—and the earlier you get them right, the easier everything else becomes.

 Learn to Budget Like a Grown-Up (Even If It Feels Overwhelming)

Budgeting has a reputation. Most people think of it as restrictive, boring, or something you only need to worry about when you’re older and have a mortgage. But here’s the truth: a budget isn’t a punishment—it’s a plan. And if you don’t make a plan for your money, it will absolutely make one for you. (Spoiler: that plan probably involves overdraft fees, stress, and the “where did all my money go?” panic at the end of the month.)

Your budget doesn’t have to be complicated. It doesn’t have to involve spreadsheets or software. But it does need to exist. Because the moment you start earning money—whether it’s your first job out of school or a patchwork of freelance gigs and side hustles—you need to start telling every dollar what to do.

A great place to start is with a simple budgeting framework: the 50/30/20 rule. It’s easy to remember, easy to stick to, and gives you structure without feeling like you’re missing out on life.

Here’s how it works:

• 50% of your take-home pay goes to needs—the essentials. Think rent, groceries, utilities, car payments, insurance, and minimum debt payments.
• 30% goes to wants—yes, wants. You’re allowed to have fun, and it’s actually important that you do. That category includes dining out, shopping, Netflix, travel, and anything else that brings joy but isn’t essential for survival.
• 20% goes to savings and financial goals—this is where your emergency fund, retirement savings, and loan overpayments live. It’s your future self’s favorite category.

What makes this method work is that it builds in both discipline and freedom. You’re not denying yourself the fun stuff—you’re just making sure the necessities are handled first. And once you see that your savings account is growing, or that your emergency fund has your back, it starts to feel less like discipline and more like peace of mind.

Now, let’s talk automation. One of the smartest things you can do is set up automatic transfers from your checking account into different buckets—your savings, your travel fund, your rainy-day stash. You can even open separate checking accounts for different categories. One account can cover all your “needs,” like rent and bills. Another can be your “fun money” account. That way, when that card runs dry, you know it’s time to pause—not panic.

And yes, you can absolutely set up your budget so it runs in the background. But it does take some trial and error. When you're first starting out, give yourself a few months to adjust. If your “needs” account always comes up short, maybe you're underestimating your expenses. If your “wants” account is overflowing, you might be able to put more toward savings than you thought.

Budgeting also gives you the power to say no—not out of guilt, but out of clarity. When your friends invite you to that last-minute weekend trip or a concert that wasn’t in the cards this month, you’re not missing out. You’re just making a decision that aligns with your plan. And that’s empowering.

It’s also worth saying: the income you actually take home is the number you should be budgeting from. That means your net pay, not your gross salary. The amount you see on your offer letter or hourly wage isn’t what ends up in your account each payday. Taxes, Social Security, Medicare, insurance, and other deductions all take a slice. So base your budget on the money that actually hits your account—not the number your HR rep told you.

And remember: budgeting is a muscle. You won’t be perfect at first. There will be months where you overspend, emergencies that blow up your plan, and moments when it feels like you’re just scraping by. That’s normal. What matters is that you come back to your plan and keep adjusting it until it works for you.

At the end of the day, a budget is just a tool to help you spend with purpose. It's not about restriction—it's about freedom. It’s about being able to say yes to things that matter, no to things that don’t, and always knowing where you stand.

What’s the Deal With W-4s and Taxes?

Let’s be honest—taxes weren’t exactly covered in homeroom. And if this is the first time you’re hearing about a W-4, don’t worry. You’re not behind—you’re just joining the rest of us who googled it our first week on the job and crossed our fingers we filled it out right.

So, what is a W-4?

It’s a tax form your new employer will hand you, usually on your first day. It’s officially called the Employee’s Withholding Certificate, and it determines how much federal income tax your employer withholds from each of your paychecks.

That money goes to the IRS on your behalf throughout the year. When tax season rolls around in April, the amount that’s been withheld gets compared to what you actually owe based on your full income and personal situation. If your employer withheld too much, you’ll get a refund. If they didn’t withhold enough, you might owe money.

So while it might seem like just another piece of new-job paperwork, your W-4 is kind of a big deal. Fill it out wrong, and you could be caught off guard with a tax bill—or leave money sitting with the IRS all year that could’ve been in your budget instead.

If you’re single, newly working, and not supporting any dependents, a simple rule of thumb is to claim “1” on your W-4. This tells your employer to withhold a moderate amount of tax—enough to cover your obligation without taking too much from each check.

You can claim “0,” which will result in more tax being withheld (and likely a bigger refund later), but that also means a smaller paycheck each time. Some people prefer this because they like getting that big check at tax time. Others prefer to keep more of their paycheck throughout the year and get a smaller refund—or none at all.

Neither is necessarily wrong. It just depends on your comfort level and whether you’d rather have more money now or later.

If you’re unsure what to choose, the IRS has a free tool called the Tax Withholding Estimator on irs.gov. It asks a few questions about your job, income, and life situation and will tell you what number to claim so you’re not surprised come April.

Now here’s where it gets tricky: if you have more than one job, or if you do freelance work, tutoring, side hustles, or self-employment, taxes start to get a little more complicated. That’s because employers typically only withhold tax based on the income they’re paying you—not taking into account your total income from all sources. So, if you’re earning money outside your regular job, you’ll want to set aside a portion (we recommend 30%) into a separate account just for taxes. That way, if you owe the IRS later, you’re not scrambling.

This is especially important if you receive 1099 income, which is common for gig workers, creatives, and anyone running a small business or side hustle. Unlike W-2 employees, 1099 workers don’t have taxes automatically withheld—you’re on your own to plan for it.

Some grads even create a separate tax savings account and immediately transfer a percentage of each side payment into it. Think of it as a “hands-off” bucket that protects you from future stress. You’ll thank yourself in April.

The bottom line? Taxes aren’t fun, but they’re manageable—especially if you start with the basics. Fill out your W-4 accurately, don’t ignore those side gigs, and use tools like the IRS estimator to get it right from the start.

Credit Scores: Why They Matter (Even If You’re Not Buying a House)

If you’ve never paid much attention to your credit score, you’re not alone. For a lot of people, it feels like something that only matters when you’re older—maybe when you're ready to buy a house or take out a car loan. But here’s the truth: your credit score matters long before you’re shopping for a mortgage.

Think of it as your financial reputation. It’s a number—usually ranging from 300 to 850—that tells lenders, landlords, and sometimes even employers how trustworthy you are when it comes to managing money. A high score shows that you’re responsible and consistent. A low score? It can lead to higher interest rates, deposit requirements, or even outright denials for loans, credit cards, apartments, and more.

In other words, your credit score can open doors—or quietly close them.

So how do you build a good one?

The best place to start is by opening a credit card in your name. If you’ve never had one before or you’re just getting started, look into a student credit card or a secured credit card. A secured card is backed by a deposit you make upfront (usually around $200–$500), which becomes your credit limit. It’s essentially training wheels for credit—and it’s a great way to prove you can handle borrowing responsibly.

Here’s how to build strong credit habits:

• Use your card sparingly, ideally for things like gas or groceries.
• Never carry a balance. Pay your bill in full every month—don’t just pay the minimum.
• Don’t max out your card. Try to keep your usage under 30% of your total credit limit.
• Pay on time, every time. Even one missed payment can hurt your score.

And no—carrying a balance doesn’t build your credit faster. That’s a myth. Paying your card off in full each month is not only better for your score, but it saves you from paying interest (which can be upwards of 20%).

If you already have a credit card, great! But how do you keep track of your score?

There are two ways we recommend. First, go straight to the source: annualcreditreport.com. This is the only official site where you can access your credit report for free from each of the three major credit bureaus—Equifax, Experian, and TransUnion. It’s a good idea to check it at least once a year to make sure everything is accurate and to catch any suspicious activity early.

Second, use your credit card’s mobile app. Many credit card companies now show your credit score for free as part of your account dashboard. It’s an easy way to track your progress, watch for changes, and understand what’s helping (or hurting) your score—all without having to dig through paperwork.

Watching your score climb month after month can be incredibly motivating. It’s a sign that your good habits are paying off—and that future you will have more financial options with less stress.

Here’s why it matters so much: let’s say you want to buy your first car in the next year. A strong credit score could mean the difference between a 6% interest rate and a 12% interest rate. Over time, that adds up to thousands of dollars. Or maybe you’re applying for an apartment. Some landlords check credit as part of the approval process. A solid score might be the thing that helps you get that downtown loft you’ve had your eye on.

Even if you’re not planning a big purchase anytime soon, building credit early gives you more freedom, more choices, and less financial friction down the road.

Understand Your Student Loan Grace Period

If you took out loans to pay for college, here’s something you might not know: you don’t have to start paying them back the day you graduate. But that doesn’t mean you should forget about them either.

Most federal student loans come with something called a grace period, which is typically six months after you graduate, leave school, or drop below half-time enrollment. That means for six months, you won’t be required to make any loan payments. Sounds great, right?

But here’s where a lot of grads get tripped up: they think the grace period is a free ride. Like a bonus semester of financial freedom. In reality, your grace period is less of a vacation and more of a prep window—a time to get your budget in order, understand your loans, and make a plan before the bills start rolling in.

Because they will start rolling in.

And depending on what kind of loans you have, interest may already be piling up during your grace period. Some loans—like subsidized federal loans—don’t accrue interest during those six months. Others—like unsubsidized federal loans and most private loans—start building interest the moment you graduate. That interest gets added to your loan balance, and it means you’ll owe more in the long run.

So how do you know what kind of loans you have, who you’re supposed to pay, and when it all starts?

Start by logging in to studentaid.gov. This is the official website where you can view all your federal loans in one place. You’ll find:

• The total amount you owe
• Who your loan servicer is (this is the company that handles your loan payments)
• When your first payment is due
• What your monthly payment amount is expected to be

This is your reality check—but it’s also your chance to get ahead. Even though you’re not required to make payments during the grace period, you can. And if you’re financially able, starting early—even with small payments—can make a huge difference.

Here’s why: during the grace period, if your loans are accruing interest and you’re not making payments, that interest gets added to your balance later on. But if you make even small payments now—$25 here, $50 there—you’re chipping away at your principal (the original loan amount) before interest gets out of control. It’s like getting a head start in a race everyone else is still stretching for.

Once your grace period ends, you’ll be placed into a repayment plan, but you get to choose which one. There are a couple of main options:

• Standard Repayment Plan: This plan breaks your loan into fixed monthly payments over 10 years. It’s the fastest way to pay it off and usually results in less interest paid overall—but the monthly payments can be higher.
• Income-Driven Repayment Plan: If your income is lower or your job is still in transition, this option can make your monthly payments more manageable. Payments are based on how much you earn and can be as low as $0. And yes, those $0 payments still count toward loan forgiveness, if you qualify.

Speaking of forgiveness—if you work for a government agency, public school, or nonprofit, you may be eligible for Public Service Loan Forgiveness (PSLF). This program can erase the remainder of your loan balance after you make 120 qualifying payments on an eligible plan. But here’s the catch: you need to be on the right repayment plan and working for the right kind of employer for the clock to start ticking.

So don’t wait until the first bill shows up. Use your grace period to:

• Understand what you owe
• Choose your repayment plan
• Set up your online loan account
• Start making early payments if you can
• Set a calendar reminder for when your grace period ends

And if this all feels confusing, you’re not alone. Student loan repayment is one of the most misunderstood parts of personal finance. That’s why it’s so important to ask questions and use the resources available to you. Call your loan servicer, talk to your bank, or reach out to a nonprofit credit counselor. There are real people out there whose job is to help you navigate this—and it’s okay to lean on them.

Your grace period is a gift—but only if you use it. Treat it as your six-month launchpad into financial adulthood. A little action now can save you a lot of stress, interest, and regret later.

What to Do With Graduation Money

Let’s talk about that pile of gift cards and graduation checks. It’s tempting to blow it all on something fun—and honestly, it’s okay to enjoy a little. But don’t spend it all at once.

Here’s a balanced approach: Use 30% of it for something you need—maybe supplies for your new apartment or a car repair. Put 40% in an emergency fund. Life happens, and it’s always better to be prepared. Stash the remaining 30% in a savings account toward future goals. That could be a vacation, your first home, or getting a jump start on paying down student loans.

Having money in savings a few months from now will feel a lot better than realizing you spent it all on Uber Eats.

Start Investing—Even If It’s Just $25 a Month

Let’s talk about something that could change your financial future forever—and no, we’re not exaggerating. It’s called compound interest, and once you understand how it works, you’ll never look at saving the same way again.

Most people think investing is something you do when you're older, richer, or more “financially stable.” But the truth is, the best time to start investing is now—when you’re young, broke, and just getting started. Why? Because time is your biggest advantage, and compound interest needs time to work its magic.

Here’s what compound interest really means: when you invest money, it earns interest. Then that interest earns interest. Then that interest earns more interest. It’s like a snowball rolling downhill—small at first, but it builds momentum, growing faster and faster the longer it rolls.

Let’s put that into real numbers. If you’re 22 years old and you invest just $50 a month in an account that earns an average return of 10% (which is what the market has historically returned), by the time you’re 52, you’ll have over $100,000. That’s not from big, risky moves or having a high-paying job—it’s from discipline, time, and the power of compounding.

The earlier you start, the less you need to contribute to reach big financial goals. On the flip side, if you wait until you’re 32 to start investing that same $50 a month, you’ll end up with less than half the amount—around $38,000. That’s a $60,000 difference just for starting ten years earlier.

So where do you actually start?

Step one: Build your emergency fund. That’s money you can grab quickly in a crisis, like a flat tire or a medical bill. Aim for $1,000 to start, then build up to three to six months of expenses.

Step two: Open a Roth IRA. This is one of the smartest tools available to young people. You contribute money that’s already been taxed, and it grows tax-free. When you retire and start pulling money out, you don’t owe a dime in taxes—not on the original amount you put in, and not on the growth either. That means if your $1,000 turns into $10,000 over the years, it’s all yours.

And here’s the beauty: you don’t need to be a full-time employee to open one. If you’re earning money—whether from babysitting, freelancing, tutoring, or part-time work—you can contribute to a Roth IRA. Even if it’s just $10 a month to start, you’re building the habit and getting that snowball rolling.

Step three: If your job offers a 401(k) or 403(b), say yes—especially if there’s a match. That’s free money. Your contributions come out of your paycheck automatically, so you don’t even miss the money, and your employer may match a portion, giving your investment an instant boost.

Step four: Explore robo-advisors if you don’t know where to begin. Apps like Betterment, Wealthfront, or SoFi Invest ask you a few simple questions and then create an investment portfolio based on your goals and how much risk you’re comfortable taking. They do the work for you, keeping your investments balanced and growing in the background.

You don’t have to understand the stock market. You don’t have to be wealthy. You don’t have to do it all at once. You just have to start.

Because the biggest financial mistake young people make isn't buying a fancy car or splurging on takeout. It's waiting.

Waiting until you “make more money.” Waiting until you “figure things out.” Waiting until “it feels like the right time.”

But compound interest doesn’t wait. And neither should you.

Your Money Habits Start Now

This might be the most important thing you read today: Your habits matter more than your income. If you can’t manage a $500 paycheck, you won’t magically learn how to manage a $5,000 one.

Start small. Save a little from every paycheck. Track your spending. Give every dollar a job. And don’t fall into the trap of comparing your financial situation to your friends’. Build your life based on what you can afford—and don’t be afraid to say no to things that don’t fit your budget.

Your 20s are for building the foundation. You’ll make mistakes, but you’ll also create habits that can lead to financial peace and freedom for the rest of your life.

And if all this still feels overwhelming, stop by one of our Farmers State Bank branches. We’re always happy to sit down with you and talk through your financial goals—no judgment, just real guidance.

Welcome to the real world. You’ve got this.