Money tips for recent college graduates

More than ever, recent college graduates need sound advice to help them establish a sound financial footing in an economy where jobs are scarce and student loan bills are looming.

Most government loans offer a six-month grace period before graduates must begin making payments, but the loans cannot be wiped out even if bankruptcy is declared. As a result, facing the reality of what the monthly payments will be and finding a job, even if the work is less than ideal, should be a top priority.

When the bills come due, loan consolidation is an option for some graduates. Interest rates will reset in July, and they are expected to decrease. Comparably low interest rates may be one of of the only bright spots on the horizon for young people finishing school in the current economy.

Another option for graduates in a limited number of fields is loan forgiveness. Although these programs are on the decline in some states due to budgeting concerns, professionals in fields such as teaching, nursing, and engineering are sometimes eligible for loan forgiveness after working for a designated number of years.

Money tips for college grads? Here are a few suggestions:

Be a saver
Most experts in the financial arena suggest keeping at least three months of living expenses in the bank as back up.

Ditch the debt
The average college graduate is overwhelmed with more than $4,000 in credit card debt. Pay off the credit card with the highest interest rate first.

Get a credit card
Are you one of the few college grads without a credit card? Graduation may be the time to take the plunge. Make sure you pay off the balance each month to build your credit rating.

Get smart
It's amazing how little college grads know about their finances. Get educated on money matters and pick up a book like "I Will Teach You to Be Rich" for the lowdown.

Click here for additional tips for college grads.