Grad Guide to Having Fun With Your Money

By Erin Burt

published 1 May 2009

Spending & Saving Starting Your Career Decoding Your Job Benefits Finding Housing Getting Around Having Some Fun

When You're Bumped From a Flight You Can Buy This ... Or This for Less

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And for a free place to stay, check out CouchSurfing.com, a network of more than 1 million people in 231 countries who are willing to open their homes (and their couches) for you to stay on your next adventure. This method helps you meet the locals and experience what life is really like in that part of the world. Stick to "vouched for" and "verified" members for safety. The average age of the site's members is 27, and nearly half are between ages 18 and 24.

A. It's a sad reality of young adulthood: You're old enough to drive, vote and drink, but until you hit 25, you don't get full rental-car privileges. Some companies, such as Alamo, Avis, or Hertz, won't rent to you at all. Budget, Enterprise, Dollar and Thrifty will, but they may charge an extra $10 to $25 per day for drivers age 21 through 24. So if you're traveling with an older friend, list him or her as the driver and pitch in the cash to cover your share of the ride. But if you're by yourself, you'll have to suck it up and pay the extra fees.

Attend a wine tasting. These can cost less than $10 each.
Have a picnic and explore a state or national park. Admission is usually less than $10 or free.
Play tourist. Live in New York but never been to the Statue of Liberty or ridden up to the top of the Empire State Building? Make it a date.
Have a food theme night (like Mexican, Italian or Chinese) and cook each other dinner at home.
Hang out on campus. If you live in a college town, take advantage of student art shows, musical concerts and theater productions. Or do some stargazing at the college observatory. These activities are often free or very inexpensive.
Volunteer together. Spending quality time together for a good cause -- what could be more romantic?

A. The binge drinking college days are over, and you're ready to show a more sophisticated side. First, consider what food with which you'll be drinking your wine. You generally want a red wine with beef, lamb or pork. Pick up a bottle of white wine for chicken or fish. And if you're having pasta, match the wine to the color of the sauce. For specific bottle recommendations, see About.com's list of the best wines under $10. You can also browse recommendations and shop by price at Wine.com.

A. We enjoy the latest John Grisham as much as the next person, but nothing gets our hearts pumping faster with excitement than learning how to be successful and make a lot of money. First, pick up a copy of Life After School Explained from Cap and Compass. A funny and incredibly helpful resource on just about everything you'll encounter in your first year out of school: credit cards, student loans, taxes, savings accounts and which fork to use first at your first business dinner. Then, to take your money savvy to the next level, check out The Money Book for the Young, Fabulous & Broke by Suze Orman, or Get a Financial Life: Personal Finance in Your Twenties and Thirties by Beth Kobliner. (See more of our favorites.)

A. Well, how much can you afford? You should never go in debt for an engagement ring. The money-hungry diamond industry has perpetuated a myth that you should spend at least two months of salary on an engagement ring. But, come on. Do they really have your best financial interest at heart (cha-ching)? Take an honest look at your budget and see where you might have some wiggle room to start saving toward your purchase. There's a lot of emotional baggage wrapped up in a ring because of what it's supposed to symbolize. But you don't want to give your fiancée the gift of debt upon saying "I do."

We know your special someone deserves the best, so start saving the little that you can each month (you can save $1,000 in one-year's time by saving just $83 a month or $11 a day. And you don't have to go for the "wow" factor right away (if she's the right one, she won't care about how much you spent on her). You can go understated for the engagement ring, and wow her with a one- or five-year anniversary ring down the road.

$125 to $500 for a quarter carat or less, set in 10 to 14 carat gold
$500 to $750 for a slightly larger stone or possibly an 18 carat gold setting
$750 to $1,000 for stones between .3 and .5 carats, some with a platinum or 18 carat gold setting and possibly AGS/GIA-certified
$1,000 to $2,000 for AGS/GIA-certified, high quality stones between .30 and .57 carats or mid to high quality stones up to .75 carats
$2,000 to $3,500 for stones from .4 to 1 carat in 14 or 18 carat gold (the 1 carat stones may have inclusions or other imperfections)
$3,500 to $5,000 for quality 1 carat stones in 18 carat or platinum setting

A. When all your college buddies start walking down the aisle, the wedding gift bill can really add up. But you can keep costs to a minimum with a little creativity. Rule number one: You don't have to buy something off the registry. Instead, use the personal knowledge you have of the couple. For example, you may know that the bride and groom share a fanatical addiction to Oreos, so you buy them a year's supply -- for less than $40. (The gift will certainly stand out among the standard-issue toasters.) Or, how about a gift subscription to Netflix for all those romantic nights in? Another idea is to build the couple a theme basket, such as a "breakfast in bed" basket with pancake mix, syrup, a couple of mugs and a bag of their favorite coffee.

If you have your eye on a bigger-ticket gift, go in on it with some friends. If three of you kick in $40, you can spring for a $120 gift. And whether you go with a group or fly solo, find a way to make gifts off the registry personal -- especially if it's on the cheap side. For example, if you get them the blender they wanted, throw in a couple of your favorite smoothie recipes and a small gift card to the local grocery store to buy ingredients. See Avoid Overspending on Wedding Gifts for more tips, and our slide show of 10 Inexpensive Yet Thoughtful Gifts for specific ideas.

For example, going into debt for education or a home can make sense. But enslaving your finances for travel, furniture, electronics or even an engagement ring is not a good idea. Ideally, you wouldn't go into debt to buy a car either because it depreciates in value over time. But when you're starting out, scraping up enough cash to buy your first set of wheels to get you to and from your job can be a tall order to fill. See When is it Worth Going Into Debt to learn more.

A. That depends on whether you'll actually use it. The true value of a gym membership lies in the variety of machines and activities. You could spend thousands of dollars outfitting your home gym to match the club's offerings. If you get bored with one workout, you have plenty of options you can try to keep active, including group classes and personal training sessions. Get bored with your home treadmill, and you basically have a $2,000 clothes hanger.

A. One way to get a bargain is to wait until the last minute. When it gets down to a couple hours before the performance, the theater may start selling "rush" tickets at a fraction of the price -- it would rather sell the seats at a bargain than let them go empty. Consolidated discount ticket booths are popping up in cities nationwide, including Austin, Boston, Chicago, New York, San Francisco and Washington, D.C. Or call your favorite home-town theater to see if it offers price cuts directly to the public right before show time. Of course, bear in mind that if you're trying to get last-minute seats to a popular show, there's a good chance it'll sell out. So it pays to keep your plans flexible.

A. You don't have to break the bank to host a great get-together. After all, it's the company of friends that matters, not how much money you spend (or don't). Start by making it a team effort. Share hosting duties -- and budgets -- with a friend. Or, involve your guests (and alleviate your financial burden) by asking them to bring a favorite dish, dessert or wine to share. Borrow decorations, linens and dishes from friends or family, and expand your music selection by visiting your local library.

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