As this year’s new college grads receive their sheepskins and throw their caps into the air, jubilation can turn very quickly to trepidation.

That’s because they are entering the most challenging job market for entry-level employees in years. Current, a consumer fintech banking platform, shares financial tips for new graduates as they navigate a challenging economy.

The labor market for new grads “deteriorated noticeably” in the year’s first quarter, says the Federal Reserve Bank of New York, with that group’s unemployment rate jumping to 5.8%. That’s the highest level since the pandemic was at full force back in 2021.

Meanwhile, sky-high housing costs mean that young adults often don’t have the ability to strike out on their own quite yet. The result: 46% of parents report their adult children (aged 18-35) moving back home, according to a March 2025 study from financial services firm Thrivent.

“Housing affordability is a big factor here,” says Alex Gonzalez, a financial consultant for Thrivent. “Adult children are moving out later, and marrying later. Often after college they temporarily boomerang back home.”

And there’s nothing wrong with that. In fact, these days especially, it can be the smart financial choice.

This transition time can actually be a “great opportunity,” says Erin Lowry, personal finance expert and author of the bestselling “Broke Millennial” book series.

New grads can take advantage of this period to get their financial lives in order: to build up their credit, put some money away in savings, and get a retirement account started.

Then, when they are ready to fully launch out on their own, they will be much better positioned for financial success.

Here are a few key planks that make for a strong financial foundation.

Building credit

One challenge many young adults face is that their credit records aren’t yet fully formed, since they haven’t had years of payment history. That takes time — and the post-grad period is ideal.

“It’s a great time to start building that credit score,” says Thrivent’s Gonzalez. “Even basic things like putting gas on your cards, and then paying it off and avoiding rotating balances. Things like that will help when you eventually apply for car loans or mortgages.”

These days, consumer fintechs have also opened up new avenues for building your credit. Everyday spending, including your daily expenses from buying groceries to gas to paying your bills, can help you build your credit history. Consumers who build credit using a secured credit card can see an average increase in credit score of 81 points within six months, according to Current’s proprietary data.

A more robust credit score (anything above 740 is seen as very good) will pay off in multiple ways, such as getting lower interest rates on loans, or even helping secure a new job. Yes, sometimes employers check your credit record.

Shoring up savings

Whether a young adult living at home should be paying “rent,” it is really up to the individual family. But ideally, a new grad would be able to reliably put money away — perhaps to start an emergency fund of a few months’ worth of expenses, or to save up for a deposit on a rental apartment or a down payment on a home.

As they’re doing that, they should make sure their money is working as hard as possible. “Everyone should have high-yield savings,” advises Lowry. “If you look at your APY and it’s .01% — which is the prevailing rate at many big banks you probably know — then it is time to move. The minimum you should be getting is 3%.”

That might require some shopping around. But younger savers are likely more comfortable with considering online, mobile-first options, beyond just whatever bank happens to have a physical branch down the block. Opening a retirement account

It might only involve small sums at first. But the mere step of opening a retirement fund early — either a 401(k) at a new job, or a traditional or Roth IRA — can make the difference between success or failure for Future You.

Doing so in your early 20s — as opposed to your 30s, say — will mean an additional decade of compounded growth. That’s a big win Boomerang Kids can lock in right now, even if the initial amounts are modest.

Of course the eventual goal for new graduates is to launch out on their own, and become fully financially independent. But the harsh economic reality is, that may not be possible right out of the gate. That’s why, according to Pew Research Center, today’s young adults are lagging behind earlier generations in reaching major life milestones.

By using that post-grad period wisely — building credit history, shoring up savings, and opening retirement accounts — they can dramatically increase their odds at a successful transition later on.

Lowry says: “Then, when kids move out, they will have a savings stockpile to help them launch out into the world.”

This story first appeared on Stacker.