Beginning in the next few days and continuing throughout their first year, more than half of all college freshmen will sign up for credit cards and most will carry two or three in their wallet. For most college students, this is the first time they’re handling their own finances. Students need to realize that their credit history starts with their first credit card. After they graduate, they will have to rent an apartment, perhaps buy a car, and purchase insurance. Their credit history may make it impossible to do any of these things and possibly prevent them from getting a car.

So how do you become a credit savvy college student? It starts at home. Parents and students should come up with a plan on how to manage the financial burden that comes with a college education, particularly the use of credit cards.

According to Sallie Mae, the governing body that manages national student loans, the typical graduate leaves school with more than $20,000 in debt from loans and credit cards. With the cost of a college education going up twice as fast the typical family income, this debt burden will grow if it is not handled properly. While getting that college degree can add to a great future, new graduates need the financial skills necessary to manage their money along the way.

Regardless of what students need to know to be a doctor or a lawyer, they really need to thoroughly learn and understand Personal Finance 101. Because credit is a financial fact of life, and your first card starts a history that will affect all your future transactions, learning to use credit cards could be one of the most important lessons a for a college student.

Additional Information: Credit 101