College 18 to 24

The TV program guests told appalling stories. "I owe more than $26,000 on my credit cards," one said defiantly. Another, confessing that he liked to treat friends to expensive dinners out, admitted, "I've trashed my credit rating." And another, insisting she could manage her bills, said she's charged a staggering $50,000 on 11 different credit cards.

And the biggest jolt of all? These guests on TV's Oprah show all are college students in their late teens and early 20s. Two of them already have declared bankruptcy.

Many of the student guests said they'd first gotten a credit card at the sign-up tables at college registration areas. One young man, a student who'd worked registration as a recruiter for a national card company, said, "[students] are the bait, and we're the sharks." He explained that he earned points for each student he signed up. He said that the employer used students to appeal to other students, "sort of like 'I'm a student, too, and I wouldn't give you anything bad, would I?' " He rolled his eyes as if to say, "Yeah. Right."

All the participants said they'd learned some hard facts about using credit cards:

Be realistic about your expenditures. If you're covering routine expenses with credit, you're living beyond your means — period.
Understand the trap of minimum monthly payments. If you make a minimum payment — say the lesser of 2% of the balance or $25 — on a $2,000 credit card balance, paying 18% interest, you won't pay off the balance for nearly 16 years, and you'll pay $3,328 in interest charges.
If you can't keep up with one credit card, it's foolhardy to add more. More cards do not mean more money coming in — they mean more going out, and for a much longer time.

When you and your parents agree that you're ready to handle a credit card responsibly, talk to GTKY Credit Union. Our Credit Cards have no annual fee, with a low interest rate and a credit limit that will give you the convenience you need without putting you in a lifetime of credit jeopardy.

If you're in your 20s, you have a financial asset money can't buy: time. And time makes your money grow. "Making some smart money moves in your 20s pays off now and in the future," says Bobbie Shocket Lazarz, CFP (certified financial planner). Here's her list of 10 smart money moves for 20-somethings:

1. Set financial goals, say, to take a vacation, go back to school, get married, buy a house, or start saving for an early retirement. Put your goals in writing; then calculate how much you'll need to save each month to reach them.

2. Make a spending plan, limit your debt, and concentrate on paying off existing bills. If you use credit, limit debt to your ability to repay. Experts say monthly credit payments, excluding a mortgage, shouldn't exceed 20% of your monthly take-home (after-tax) pay.

3. Build an emergency fund equal to three to six months' living expenses, even if it takes years to build. Use this fund only for true emergencies, such as unexpected car repairs, illness, or unemployment. "Use direct deposit and payroll deduction," says Lazarz.

4. Save at least 10% of gross income for your emergency fund, future goals, and retirement. If you can't manage 10%, start with 5% and increase it over time.

5. Take advantage of the services your Credit Union offers. You'll earn more when you save and pay less when you borrow.

6. Make it a priority to get adequate health, disability, auto, personal liability, and renters' or homeowners' insurance. If someone else depends on your income, you also need life insurance.

7. Once you've implemented your spending plan, built your emergency fund, and obtained appropriate insurance, make the most of your money by starting to invest. Lazarz says the key to making the most of your money is investing small amounts gradually and sensibly over time. Think in terms of at least five to 10 years down the line. Investments need that much time to ride out the inescapable ups and downs of the market.

8. Use tax-advantaged savings plans your employer or the government offers to save money for your retirement, such as company 401(k) retirement savings plans and individual retirement accounts (IRAs) at Greater Kentucky.

9. Keep job options open by keeping your job skills fresh. Get necessary training and education so your knowledge and skills stay up to date.

10. Maintain orderly financial files to keep track of your money and put your hands on important records when you need them.

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