It’s easy to throw down your MasterCard and forget about how much your text books cost for the semester; it’s just as simple to open a tab at Happy Hour and let the Bud Light flow.  We all eventually realize, however, that college flies by in the blink of an eye, and before you know it, you’ll be on your own.

With the economy in peril, now is an especially good time to start keeping an eye on your credit score so you don’t find yourself denied when you try to open new bank accounts, get a new apartment, condo, or house, or reward yourself for landing your dream job by buying your first brand new car.  Maintaining a good credit score doesn’t have to be harder than next Tuesday’s cumulative Calc exam, though– here are five simple steps to stay on top of your financial game.

1.  Get a credit card.

This might seem like a no-brainer, but I know a lot of people who are adamantly opposed to credit cards.  How they live without them, I don’t know. Personally, I am always prepared to whip one out in case of an emergency (like when my gas tank is below empty and I try my luck at the commuter lot at school).  Hey, if you can get by without a credit card, you win my admiration, but you can’t build credit if you never have any to begin with.  Get a credit card, and charge a couple small things each month- paying your bill in its entirety will show how well you handle your money.

2.  Put your name on the bills.

It’s a luxury to have parents who help you out in college.  However, if the ‘rents pay your cell phone bill, sign for your campus housing, or let you drive their car around for four years of higher education, you won’t have very strong credit references when it’s time to get out on your own.  Many apartment complexes want to see that you’ve been a good, rent-paying tenant in the past, for example.  If you only have your parents’ credit to go by, they might have to co-sign for you as gauranteurs, which still doesn’t necessarily prove how responsible you are when it comes to managing bills and paying off debts.  Even if you start small, like keeping a cell phone plan in your name, you’ll be off to a good start.

3.  Pay what you can..and pay on time.

Not paying your CC bill will result in a hefty fine, as will paying your rent or other bills by the due date.  If you find yourself struggling at the end of the month, prioritize your debts.  Pay the car payment in its entirety, and send American Express the $20 minimum payment.  Don’t squeak by with small payments every month, though – as far as credit cards go, your score is measured in a ratio of debt vs. available funds.  Paying the min will result in a finance charge, which could make your balance stagnant (providing you aren’t spending more each month).  So if your credit card limit is $5,000, and your balance has been a steady $4,500 for the past few months, your score will take a hit.

4.  Keep old accounts open.

Remember the time you signed up for a card because you wanted a free T-shirt, and then realized you didn’t need a third credit card? Keeping that account open will actually look good on your credit report.  If you don’t have to pay a fee to keep it, it won’t hurt anyway.  However, if you continually max out your cards, transfer your funds to a new card, and close the first account, your spending will look sporadic and unorganized.  Really, you can avoid this altogether by finding one or two really good credit card deals that you can use for years, but if you’ve paid off your debts on one card and really want the Delta Skymiles Platinum so you can earn enough rewards to fly to Hawaii this summer, there’s no reason to reach for the scissors just yet.

5. Keep an eye on your credit score.

This way, there won’t be any surprises.  If you see your score start to slip, you’ll be aware and can re-anaylze your spending and try to get those numbers back into good standing.  You’ll also be able to monitor your activity and prevent fraud, identity theft, or unwarranted charges.  Check out FreeCreditReport.com or speak to a financial expert to figure out where you stand right now.

Getting into these simple habits won’t just help you establish a good credit report while you’re still young, but you’ll start to develop healthier spending habits to keep your credit shining as you begin your real adult life of mortgages, car payments, and starting a family. Really, these things should come naturally, but are overlooked by millions of people, young and old, across the country.

And hey, it’s quicker than checking a Facebook minifeed, so what are you waiting for? Fill out your first credit card application, check your payment due dates, and try to get an idea of where you stand in the realm of debt and credit.

(In the second installment of our Expert Series Understanding The Economic Situation, we continue with the Q and A with a VP of an Investment Banking Firm. He knows his stuff and he’s gonna break it down for us in ways we can finally understand. Pay attention; he offers great advice for us college ladies for saving, spending, and not getting depressed. In case you missed the first part, read it HERE]

Do these recent economic waves mean college students and recent grads should stay away from investing in the stock market right now?

No – they should DEF participate and now is the time to do it. Recent and current grads should look to NON-financial stocks. Everything is down right now and there are so many bargains. Look to other tech and retail stocks. Buy stock and just let it sit. Don’t start trading regularly like I did when I was in college. I didn’t really make anything off of it, and if I had held onto the Google stock that I bought at $15, I would NOT be answering this email right now – I would be on a beach drinking fruity drinks with umbrellas.

How does one actually start to make smart investments?

Smart investments are ones that are based off of information, not emotion. An emotional investment is, “OMG, everyone is selling off finance stocks – I should sell mine too!” An informed one is made by reading 10K reports, poking around the internet for info, maybe even emailing or calling an investor relations representative of a company (they HAVE to talk to you and actually like doing so). Then you say, “Oh, Lehman is f*cked but JP Morgan is still in a strong position.”

How can today’s college students and recent grads start saving money?

I know it sounds stupid, but if a college student started saving SOMETHING on a monthly basis – the results would be amazing. Compound that over a yearly basis, and by the time you are ready to get a house (in 10 years or so) you will be in a much better financial position. SAVE. Keep 2 credit cards, 1 you do not touch. Keep it in the bottom of your underwear drawer. The second one should be paid off at the end of every month. You can even work with the CC company and set a self-imposed limit. They want your business, so they will do whatever you want. The card in your underwear drawer is an emergency card – and should stay hidden until the most dire need, NOT a trip to Vegas.

Do you think it’s right that big CEO’s got those “golden parachutes” when these companies went down?

Ah, the Golden Parachute. I want one of those. Yes, they are worth it. You have these CEOs with big names, and lots of pressure. When these guys/gals first join a big company, it is because they have developed a good reputation as being smart business people. Companies want them to bring that reputation to their company, because the stock price would go up even at the announcement of new executive. It is the same theory behind paying athletes the high salaries. It is not just the on the field value, but off the field as well.

CEOs become the face, name and brand of the company – and if the company goes down (whether it is the CEOs fault or not) people will always associate that company with that person. Their possible job future is gone. It is also important to keep them from having to worry about their job security. Think of it this way, if you are worried about something, does it affect the way you make decisions? Sure it does. If Jane CEO is worried about keeping her job, she will make conservative decisions with very little risk. Very little risk=very little return. That is not how businesses grow, especially big global ones.

When the board of directors say, “Hey Jane, you are smart and saavy. If anything happens and you get fired, $10M is yours. Go out, get on the cover of Forbes, talk to the WSJ, make HUGE deals for us so that the stock price will go up.” If she does well, she is a genius. If she guesses wrong on even 1 small aspect, everything could crumble. Golden Parachutes are part of the reason why we have experienced some of the growth we have.

Honestly, should we be freaking out?

Your PARENTS should be freaking out, not you. This is cyclical. When you are your parents age, you won’t be seeing stuff like this – it will be different, but not like this. If you have $1M in financial stocks – then I would say go out, buy a hat, and hold the f*ck on to it. But you don’t – so stay cool. Be a little Fonzie.

It’s time for the news with Kandy Korrespondent!

For those of you who may have thought this year’s presidential race couldn’t get any crazier: Meet Mr. Bob Barr! Former Republican congressman, Bob Barr said on Monday that he would run for President as part of the libertarian ticket. He was part of the Republican Revolution in 1995 and gained notoriety for his role in the impeachment of former President Bill Clinton. He left the Republican party in 2004 and became a Libertarian in 2005 as a result of his growing disillusionment with the civil liberties-eroding Patriot Act. His entrance into the race as a third party candidate may siphon off extreme right-wingers from the McCain platform.

Also on Monday, President Bush told the BBC that the US has plans to strengthen Lebanon’s army to enable it to disarm Hezbollah. At least 60 have died in clashes around Beirut this past week.

In this writer’s opinion, it seems clear that Bush and his advisers see aiding the side of the Lebanese army in their fight against Iranian-backed Hezbollah in geopolitical terms. It’s a way to assert continued US “control” within the Middle East, and yet another opportunity to shove some dirt into the eye of Iranian president Mahmoud Ahmadinejad. What is not clear, however, is whether the administration fully understands the ramifications of such a move.

Lebanon is teetering on the brink of civil war. Turning the country into a tiny microcosm of Iran-US tension is sure to only harm the situation. Furthermore, with the US military and resources already embroiled in Afghanistan and Iraq, becoming mired in yet another endless conflict is not what anyone needs.

In other news:

The death toll from Monday’s 7.8 magnitude quake in China has reached at least 10,000. Meanwhile in Myanmar, at least 32,000 are dead with thousands more missing and injured. Check out the BBC for how you can help.

Chances are either you or someone you know are in the midst of selling your house thanks to the country’s current economic woes. Meet Shawn Forgaard, a 37-year-old software company project manager who made the fatal mistake of investing his earnings in real estate. Between 2004 and 2006 he invested in 10 homes, including his primary residence in Santa Cruz, CA.

His story is synonymous with thousands of other real estate speculators who counted on rising real estate values (allowing them to refinance at a better rate) to pay off their mortgages. When the bottom fell out of the market, Forgaard initially thought he had enough equity to ride the storm. Five months ago, however, it became apparent that he didn’t. He and his wife are preparing to sell their homes, declare bankruptcy and move to a cheaper place in Northern California.

With the economy in a seemingly endless death spiral, stories like the Forgaards are becoming all too common. In California, 47,171 homes were foreclosed during the first three months of 2008—a fourfold increase from the same time last year. Home prices have dropped by 18 percent, according to Yale economist Robert Shiller’s calculations, and he expects them to drop a total of 30 percent before the market levels out.

Check out my previous posts, A Girl’s Guide to Recessions I and II, for more info about the current economic crisis.

That’s the News! See you tomorrow.