After years spent studying, weeks of final exams and afternoons spent booing commencement speakers when they brought up artificial intelligence, the class of 2026 has graduated into an economy in which consumer sentiment is near all-time lows.
New college graduates are entering “the real world” without rose-colored glasses. At 76%, a majority of those surveyed by the career platform Monster in February said they were concerned about the economy’s impact on their job prospects.
Four months later, they may have reason to be more hopeful. Hiring has picked up across the U.S. over the last three months, and a survey by the National Association of Colleges and Employers found employers expect a 5.6% increase in hiring for 2026 graduates after a year of historically low hiring across the board in 2025.
Even if they land a job right away, they’ll face high prices for essentials. The costs of rent, gas and food all got more expensive in May, according to Labor Department data. They’ll also face a different student loan landscape — one with some repayment plans ending and new ones set to launch July 1.
Personal finance experts say the right financial footing can still set them up for success. Here are five things they said new grads should keep in mind:
Reject Lifestyle Creep
The first right move may be as simple as crafting (and sticking to) a new budget to avoid lifestyle creep, which happens when a person’s expenses rise with their salary, leaving little room to save or pay down debt.
The largest financial mistake people make when they are just starting out is spending to try to match their peers’ lifestyles, Kelly Regan, a financial planner and vice president at Girard Advisory Services, said.
“Maybe you have the ability to live at home for a little bit and save some money, but instead you go get an expensive apartment,” Regan said. “Time is on your side right now, so the more than you can save and cut your expenses now, and whether invest or pay down your loans, is really going to help you out.”
Save What You Can
Miklos Ringbauer, a certified public accountant and founder of MiklosCPA Inc., said that it’s not too early for new grads to build an emergency fund and begin allocating a portion of their income to an employer-sponsored retirement plan. The sooner they start, the more time compound interest has to work in their favor.
“In particular, a Roth 401(k) may offer significant long-term benefits, as many recent graduates are likely to be in one of the lowest tax brackets they will experience during their careers,” Ringbauer told USA TODAY.
A Roth IRA is another option for those who don’t land a job right away, or whose employer doesn’t offer a plan, Ally’s Head of Financial Wellness Jack Howard said. If they’re aiming to build an emergency fund, a high-yield savings account is a good place to put it, she added.
“The biggest thing is automation, so really creating the habit of no matter what, I’m going to transfer five to 10% to cover retirement and also to cover my emergency savings,” Howard said. “The emergency savings builds confidence for now. Your retirement helps to build confidence for your future.”
Don’t Forget About Student Loans
The window before graduates must begin repaying their student loans is often nearing its end around the same time they are settling into their first job.
While navigating the landscape can be challenging, Howard put it simply: new grads need to “lock in.”
“That may mean calling your student loan provider to learn how you may be impacted with all the changes taking place in July,” she said, adding the class of 2026 should reach out to their college’s student loan office if they aren’t getting answers from their provider. “Ask for help if you feel like it’s too overwhelming.”
New grads may also want to loop their parents into the conversation. Parent PLUS borrowers could lose access to Public Service Loan Forgiveness and income-driven repayment plans if they fail to consolidate their loans before July 1.
‘The Job Market Is Not a Reflection of Your Worth’
New grads are optimistic about their earning potential. A Clever Real Estate survey found the average college student expects to earn $80,000 after graduating, though the actual starting salary for fresh grads is closer to $56,000.
The Monster survey found that while 79% of respondents believed they would land a job within three months after graduation, expectations are starting to shift as longer hiring timelines grow more common. More than a third thought their job search would take four months or longer, and 15% are prepared for it to last more than six months.
“That can affect not only their focus, but also their mental and emotional state. They may feel depressed or they may feel like it’s taking longer than expected,” Monster career expert Vicki Salemi said. “It’s just really important for them to stay focused and stay on top of what they can control.”
That includes making networking calls, preparing for informational interviews and revising their resume, she added.
“The job market is not a reflection of your worth…If a job search takes longer than expected, it doesn’t mean you’ve failed or made the wrong decision in pursuing your education,” Joy Thiesen-Braunstein, a student services coordinator at Samuel Merritt University, told USA TODAY. “Remember, your first job is not your final destination. Most successful professionals didn’t start in their dream role and careers are built over time.”
Don’t Lose Hope
It can be easy to feel defeated amid high prices and a general sense of economic uncertainty, but Regan said new grads experiencing anxiety is nothing new. What’s changed, she added, is how much information is available to them 24/7.
“A lot of times that push notification can spark anxiety or demotivation or that doom and gloom,” Regan said, suggesting the class of 2026 ask and tell themselves, “Does this really apply to me? Sure, the unemployment rate, but does that really apply to me? I live in this job market, I’ve had x amount of interviews, or I can fund my student loans. I just need to come up with a plan.”
Howard says she finds people are often most anxious they won’t find a job or that AI “will take over.” The best way to calm those fears is to take action and speak to yourself differently, she added.
“My goal is to shift your mindset,” Howard said, adding new grads could, for example, lean on their college placement center, develop a relationship with a recruiter or take an AI course to earn a certification that may make them more marketable to employers. “Give some structure to what you can control to get to a different outcome versus when you have that negative soundtrack, you tend to have avoidance and not do anything.”
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