4 Tips To Manage Money
Historically, college graduates have tended to find jobs faster and experience lower unemployment than workers without a degree. But recent data suggests it’s now harder to find a job that fits your skill set once you graduate.
According to the Federal Reserve of New York, 42.5% of recent college graduates (aged 22 to 27 with a bachelor’s degree or higher) are underemployed as of December 2025 — the highest rate since October 2020. Underemployment refers to working in a role that underutilizes your skills, usually at a lower wage or in a part-time position.
Younger workers are also dealing with stagnating wage growth. According to an October 2025 JPMorganChase Institute report, income growth has slowed across age groups, with workers aged 25 to 29 experiencing the sharpest slowdown.
Underemployment may be better than unemployment, but it can put a real strain on your wallet. Here are some tips and tools to help recent grads bridge the gap.
Tips to manage your finances while underemployed
1. Review your fixed costs
To start, periodically review your finances. Saving money doesn’t always have to mean cutting back on coffee or your weekend adventures; simply try to reduce your fixed costs for more effective long-term results.
Fixed costs are essential expenses that you pay consistently, like your rent, phone and utility bills or car insurance. Some adjustments could be more substantial, such as finding a roommate to help split living expenses. But there are simpler ways to make meaningful improvements. For example, you could lower car insurance costs by bundling home and auto policies or removing perks you don’t need, like roadside assistance that’s already offered by your credit card or vehicle warranty.
If you’re interested in trying a budgeting app that can help keep track of your day-to-day spending, Rocket Money lets you link your checking, savings, credit cards and investments so you can see everything in one place. You can set alerts for your spending and savings goals, and Rocket Money concierge can help get you the best rates for current bills, like phone or cable and even car insurance.
Many of these perks are available for free, but some require a premium membership — which uses a “pay what you think is fair” approach. Rocket Money presents a slider, typically between $7 and $14, letting you choose the price based on the value you feel you’re getting. Your features stay the same, regardless of what you choose to pay.
Rocket Money
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Cost
The basic plan is free. Rocket Money Premium is $7 to $14 a month with a 7-day free trial. Bill negotiation services cost 35% to 60% of the first-year savings, if the negotiation is successful.
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Standout features
Easily cancel unwanted subscriptions, track your spending and credit score, automate savings and get help lowering bills. Rocket Money Premium includes additional services like net-worth tracking, credit reports and a subscription cancellation concierge service
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Security
Rocket Money accesses transaction data via an encrypted token, uses Plaid API so user credentials are never stored, provides bank-level 256-bit encryption and hosts servers on Amazon Web Services
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Availability
Offered online and on both the App Store (for iOS) and on Google Play (for Android)
Pros
- Allows you to easily view and cancel unwanted subscriptions
- Offers a free version
- A+ from Better Business Bureau
Cons
- Nonrefundable bill negotiation fee can be up to 60% of savings
- Premium pricing varies
2. Make sure you’re saving strategically
While you should keep around one to two months worth of expenses in your checking account, letting large sums of money sit there is likely a lost opportunity.
According to the Federal Deposit Insurance Corporation, the average national rate for interest checking accounts is just 0.07% as of Feb. 17, 2026. If you let $10,000 compound daily for 10 years in a checking account with that average rate, you’d only earn an extra $70.
If you still want to keep your money easily accessible, consider putting it into a high-yield savings account (HYSA). Putting that same $10,000 into a Western Alliance Bank High-Yield Savings Account will earn you a 3.8% APY (compounded monthly). Over 10 years, you could earn over $4,600 in interest alone.
This HYSA also allows for unlimited withdrawals, meaning you can access your money pretty much whenever you need it. If possible, keep enough in your checking account to cover immediate bills, but let the rest sit in an account like this that earns higher interest.
Western Alliance Bank High-Yield Savings Account
Western Alliance Bank is a Member FDIC.
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Annual Percentage Yield (APY)
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Minimum balance
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Monthly fee
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Maximum transactions
Up to 6 transactions each month
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Excessive transactions fee
The bank may charge fees for non-sufficient funds
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Overdraft fee
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Offer checking account?
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Offer ATM card?
Pros
- Strong APY
- Low minimum deposit required
- No monthly fees
Cons
- Bank may charge non-sufficient funds
- Doesn’t offer checking account or ATM access
- Accounts are opened and managed on Raisin.com
3. Try out money-making apps
Even if you’re cutting costs wherever you can, sometimes a little extra income is necessary to cover expenses. There are many popular side hustles, but some require you to have a rentable property or a car in order to participate. If you’re looking for something with a lower barrier to entry, consider selling some of your old things online or offering up your skills as a freelancer.
E-commerce marketplace eBay has been a household name for a while now, but there are several other online shops where you can sell used, vintage or unique items. If you have a collection of older clothes and accessories you no longer want or need, Depop (which eBay recently acquired in February 2026) is a fashion marketplace that helps old styles find new lives. With an Instagram-like interface and the ability to follow users on the app or comment on listings, Depop can help sellers find the right audience.
Depop
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Fees
For U.S. sellers, the standard transaction fee for Depop Payments is 3.3% + $0.45
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Shipping costs
Either the buyer or seller can cover the cost of shipping for shipping labels generated by Depop — costs depend on the weight and dimensions of your package. U.S. sellers can also choose to arrange their own shipping
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Availability
The app is available in both the App Store (for iOS) and on Google Play (for Android); there’s also a web version, but the app is more functional.
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How do you get paid?
Earnings from your sales are all paid into your Depop Balance. These earnings are then automatically transferred to your connected bank account.
Pros
- You only have to pay fees when you sell an item (no listing fees)
- You can post the listings and manage your shop all from your phone
- Offers a social feed for boosted visibility
Cons
- Does charge a fee
- You can’t use it for in-person deliveries or orders
- Funds are held until delivery confirmation or the waiting period elapses
If you’re more fond of your current possessions, you may have a skill or trade that people are in need of. Through Fiverr, you can offer your freelancing skills to a wide market, whether you specialize in graphic design, business consulting or even music. Fiverr offers a lot of ways to customize your offerings, including the ability to create tiered packages for upselling or more involved tasks. You will have to be okay with giving up a fifth of your earnings, as Fiverr takes 20% of the purchase amount.
Fiverr
Pros
- Lower barrier to entry
- Allows you to set different pricing levels (Basic / Standard / Premium)
- Clients typically come to you
Cons
- High commission fee
- Competitive marketplace
4. Protect your credit score (for the future)
If you’re underemployed, especially for longer periods of time, you may be forced into making financial decisions that could negatively impact your credit score just to make ends meet. There are a few methods you can take to minimize or sidestep any negative impact, though.
For example, you may find yourself carrying a balance on a credit card. Typically, you’d be charged a variable APR on that balance (the average credit card interest rate on accounts assessed interest was 22.30% in November 2025, according to the most recent Federal Reserve data). But a 0% APR credit card can help you pay off your balance without interest charges or a hit to your credit score.
With the Wells Fargo Reflect® Card, you can get a 0% intro APR for up to 21 months from account opening on purchases and qualifying balance transfers, followed by a variable APR of 17.49%, 23.99% or 28.24%. Just know, balance transfers need to be made within 120 days from account opening to qualify for the intro rate.
The Wells Fargo Reflect® Card can help you save on interest charges thanks to its extra generous intro-APR offer on purchases and qualifying balance transfers.
- Best-in-class intro-APR for purchases and qualifying balance transfers
- No annual fee
- Cell phone insurance: up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible
- No rewards
- No welcome bonus
- High balance transfer fee
Highlights
Highlights shown here are provided by the issuer and have not been reviewed by CNBC Select’s editorial staff.
- Apply Now to take advantage of this offer and learn more about product features, terms and conditions.
- 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.49%, 23.99%, or 28.24% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
- $0 annual fee.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
- Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It’s an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.
Balance transfer fee
Foreign transaction fee
If you’re paying for a streaming service or a phone bill, there’s a chance you can get those added to your credit report and boost your FICO Score. With *Experian Boost®, you can link certain monthly payments, like streaming service or phone bills, and have them added to your Experian credit report. Plus, the service doesn’t report any late or missed payments, only positive ones, so it shouldn’t negatively impact your score.
Experian Boost®
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Cost
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Average credit score increase
13 points, though results vary
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Credit report affected
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Credit scoring model used
Results will vary. See website for details.
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*Results will vary. Not all payments are boost-eligible. Some users may not receive an improved score or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
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