Column by Natalie May

I don’t know about you, but the news of a $700 billion government bailout has increased my stress level from a five to a ten. The anxiety caused by the speculation of decreases in funds for scholarships and financial aid, increases in tuition, shortages in jobs, dollar inflation and cutbacks on credit is enough to make any college student run away on a permanent backpacking trip through Europe.

Not only has the government just given away money that didn’t even exist before, but they are thinking about changing their plans after passing the bailout bill. The president says now that he wants to directly give money to the banks instead of buying bad mortgages. It seems to me that no one knows what to do; this should worry you, my friends.

This commentary is not about what I think we should do to solve the crisis. How should I know? I’m only going to offer you some good old-fashioned, common sense advice. After all, it is always wise to try to find some understanding in confusing, and critical, situations. This financial crisis allows us the perfect opportunity to learn about making better financial decisions than our elders.

Here are four tips for smart money management:

• Credit cards are a necessary evil of our economy. Before you can apply for a loan, you must attain debt and prove you can pay off that debt through credit. For this reason, maintaining a good credit score is crucial. Too many people, including college students, apply for credit cards without understanding the consequences of not paying the monthly bill. A credit card is not a free pass to live beyond your means. You also need to watch your interest rate. Especially in times like these, creditors often like to increase your rate. If you can’t afford to pay off more than the minimum amount every month, you will never pay off your debt.

• First-time home loans can be a gift from heaven or a curse from hell. Fortunately sub-prime loans are a thing of the past, but this doesn’t mean loans can’t go bad. When you apply for a home loan, you will be asked to show two-months-worth of bank statements, a 30-day pay stub and your W2 forms from the past two years. For this reason, running into trouble by lying about your income is not a possibility; you should never lie in the first place, by the way. However, problems can arise if you cannot maintain that income until you pay off the loan. Make sure you have a steady job before you purchase a home.

• Web sites like SmartAboutMoney.org, a non-profit organization, and MyMoney.gov can teach you how to create a financial plan. Building a plan will allow you to forecast the expenses and savings of your earnings. Organizing your money with the aid of this tool is the key to personal wealth and a secure future.

• Rules for retirement, there are two: save your money and save it sooner. The more moolah you save, the more you can invest. The sooner you save, the longer you have to invest. Wise investments through certain retirement plans are good ways to watch your money grow over the years.

It’s a sad world when people become so greedy and dishonest that the government has to step in and monitor their every move. However, the bad decisions made by a few greedy and deceptive lenders and buyers may be able to offer us more than a headache and a part-time job when we graduate. I urge my generation to be more conscious of the general welfare than our predecessors. Although they have left our country bankrupt, and will leave us the responsibility of cleaning up the mess, we can still work to better our personal situations. Reduce your anxieties; start guarding your money now.