May is a busy month full of exciting changes. One of these changes might include the high school graduation of your child or a young adult you know. Whether this is the year you see your own child off to college or you watch a niece, nephew, grandchild, or neighbor matriculate, it's never too early to learn the best ways to ensure his or her wellbeing.

Unlike many aspects of growing up, children's finances are not something to be undertaken by trial and error. Mistakes could lead to growing debt — or, worse, a negative credit history that could follow them for up to ten years.

Set A Budget
One of the most important things a college-bound teen can do before school is sit down and establish a budget. With the flurry of classes, new friends and a new living environment, college students can often lose sight of their finances and spend money unnecessarily. Also, when students are using a credit card for the first time, it can be all too easy to forget that they'll eventually have to pay for all their purchases — plus interest if they don't pay in full each month.

Help the young adults closest to you keep their finances straight by making their responsibilities and contributions very clear. If you plan to pay for certain items or contribute financially, be consistent from month to month. That way, a child can budget appropriately and won't have any monetary "surprises."

By helping eager college students organize their financial priorities, you can set them on the path to successful fiscal responsibility.

Open New Accounts Wisely
Whether it's due to relocation or simply growing up, college may be the first time students have to open their own accounts. Help young adults understand what to look for in a checking account. Simple tips — such as avoiding accounts with ATM or debit card fees — can make a real difference in a college student's finances.

Also, encourage students to open a savings account and put money toward it consistently. Even if it's only a few dollars, this will get them in the habit of putting money away. They'll appreciate the financial cushion later on.

What's another easy way to help kids manage how much they're spending? Encourage the use of cash. It's easier to realize how much you're spending when you actually have to hand over money.

Keep Meticulous Records
There are a number of benefits to teaching students how to keep careful financial records. First and foremost, the only way for a young adult to stay within a predetermined budget is to know exactly how much money is spent — and on what. Stress the importance of keeping credit card and ATM receipts, all statements, and any checkbook information organized and up-to-date. This will also help students maintain financial safety and security.

With all of the transactions that occur on a college campus, it's important for students to make sure all of their financial records are accurate. Now is the ideal time to teach young adults about checking and monitoring their credit — a practice that will reap benefits later in life.

Embrace the College Lifestyle
Even though college is often a student's first step toward financial independence, it's also a good environment in which to learn. While the temptation to spend a lot of money can be strong, the financial demands on the student are often manageable.

In addition to seeking out scholarships and work-study programs if necessary, students can curb their spending in a number of simple ways — such as eating in a dorm rather than dining out. A student also can prevent overspending on leisure by taking advantage of on-campus, low-cost entertainment options. Finally, a student may be able to reduce costs by not having a car on campus, and taking advantage of college health insurance options.

College is often the first time people entrust children with a credit card, but it's important to determine which card is best for a young adult. Allowing teens to start using credit cards at this age will help them establish credit. But mismanagement of the account can lead to debt and an unfavorable credit history. Your selection of a credit card depends on the teen's responsibility and success in managing finances — but there are some steps all adults should help the children around them take:

• Look for a reasonable APR. Try to keep a teen's interest rate as low as possible and no higher than in the teens. Also, keep your eyes open for cards with introductory rates of 0% for up to a year, but be cautious of the rate after the introductory period.
• Start slow. Help the young adults in your life start to build credit, one low-limit card at a time. This gives them time to get adjusted to financial management without becoming overwhelmed.
• Read the fine print. Make sure to choose a card with no annual or hidden fees and a generous grace period. Also avoid cards with confusing repayment rules to ensure your child stays up-to-date on making payments.
• Seek out reputable student cards. While there are many of companies that prey on financially inexperienced students, there are also a number of cards that take their needs into account. Some cards not only offer the features mentioned above, they also offer points for paying bills promptly and maintaining good grades.

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