by Xinyi Miao
On February 27th, iJOBS invited Joe Conklin Shure and Justin Rice, two Certified Financial Planners from the Financial Planning Association of New Jersey, to share tips on expense management with Rutgers graduate students and postdocs. Joe and Justin covered a range of topics during this workshop, including tax reporting, budgeting tips, retirement planning, and student loan management. If you missed this workshop, the iJOBS team has you covered. Continue reading this article to learn more about tips and tricks shared by Joe and Justin.
Taxes
As a reminder, the federal tax deadline is April 15th, 2025. If it is your first time doing taxes in the US, the Internal Revenue Service (IRS) offers free tax support for taxpayers at multiple locations on campus. When filing taxes, consider claiming eligible tax credits, such as:
Cashflow and Expense Management
A good way to track your spending is through expense tracking apps. Expense tracking apps can help bring unconscious spending (aka those impulse purchases) into awareness. When choosing an app, keep in mind that free apps might sell user data and may not provide long-term service. Joe and Justin recommended paid tracking apps, such as Rocket Money, Monarch Money, Quicken, and YNAB, which offer automatic categorization to help with budgeting. These apps may shed light on unconscious expenditures to help you save more money.
An alternative way to reduce unconscious expenditures is the “envelope system,” where you carry a physical envelope with cash each time you go shopping. It may sound old-fashioned but its effective. Credit cards typically reduce the “pain of paying”, making it easier to overspend. Using cash can help curb unnecessary expenses.
Saving and Investing
Joe and Justin introduced the five-tier saving and investing system. This system suggests that savings and investment priorities vary at different stages of life, ranging from short-term savings to long-term investments and retirement plans. For most graduate students and postdocs, the primary focus should be on emergency savings and low-risk investments (Tier 1). Here are things to consider:
- Save 1–2 months’ worth of expenses in a checking account.
- Consider high-yield savings accounts (APY >5%) for secure, low-risk growth.
- Utilize Health Savings Accounts (HSA) and 401(k) plans (especially up to employer match).
- If needed, 401(k) funds can be transferred to other retirement plans like TIAA or IRA.
- 401(k) is employer-sponsored and requires minimal effort but may have limited investment options.
- IRA requires personal setup but offers greater investment flexibility.
For most graduate students and postdocs, a Roth IRA is preferred over a traditional IRA because while contributions to a Roth IRA are not tax-deductible like a traditional IRA, most graduate students are in a lower tax bracket during graduate school and in a higher tax bracket after graduating. This means that if you add the same amount of money to your Roth IRA during graduate school and once you are in a higher income bracket, the amount you added during graduate school would have a lower tax deduction. Then, unlike a traditional IRA, the money you withdraw after retirement is tax-free.
The 50/30/20 Budgeting Rule
Ideally, we want to spend 50% of our take-home income, the part of our income that is left after tax deduction, insurance, etc., on needs, 30% on wants, and 20% on savings. Given New Jersey’s high cost of living, these exact proportions may not always be realistic, but any commitment to saving (even $100/month) fosters long-term financial stability. It is very important to start saving sooner than later.
Credit Scores
No matter which stage of life, the most fundamental rule is always pay credit card bills on time to maintain good credit and eliminate high-interest debts. Check with your bank about automatic payment options to avoid missed or late payments. Pay attention to factors that impact FICO credit scores: payment history, accounts owed, length of credit history, and new credit applications. Setting up one recurring payment on a credit card with automatic payments enabled is a simple way to build credit.
Student Loans
Federal loans, such as the Income-Driven Repayment (IDR) Plan, are preferred over other types of student loans, as they are protected by legislation. Some student loans may qualify for forgiveness over time. Unlike credit card debt, federal student loans have fixed interest rates, so they don’t need to be paid off immediately.
Before this Financial Planning workshop, I didn’t know much about retirement plans, so learning the differences between a 401(k), a traditional IRA, and a Roth IRA was especially helpful. I’ve also noticed that my monthly spending often exceeds my original budget when paying off my credit card balance. Joe and Justin’s talk reminded me to manage my cash flow more wisely and convinced me to start using finance tracking apps—hopefully, I can identify areas where I can cut back.
And yes, readers, it’s tax season—so let’s tackle those taxes as soon as possible!
This article was edited by Junior Editor E. Beyza Guven and Senior Editor Antonia Kaz.