SmartMoney.com’s senior consumer finance reporter, Kelli Grant, advises new graduates to start thinking long and hard about their credit, CBS reports.

A credit score of roughly 700 is needed to receive low rates on a home or car purchase, Grant tells CBS. Young adults should develop a habit of paying their bills on time to build credit. It’s difficult to think about a savings account while earning an entry-level salary, but it’s vital to financial success. Creating a budget is a skill that will help young adults manage their money and spend within their means, Grant says.

Speaking of spending habits, new graduates should be careful about avoiding the cycle of debt that most Americans are facing. Some credit card rates have climbed to nearly 30 percent, Grant points out. Paying with cash may be a good alternative for new grads managing their meager finances.

The study showed that 36 percent of consumers had trouble paying bills during the past two years, with women struggling more than men. Those living in urban and rural areas also faced more difficulty than consumers in suburban neighborhoods.

Unemployed respondents had less difficulty keeping up with bills than their employed counterparts, according to Susan Menke, a behavioral economist at Mintel Comperemedia.

“This could be because they’re contending with fewer debts, or it could mean they’ve given up trying to pay their loans,” she said.

Credit card debt that is 180 days overdue is deemed uncollectible by lenders. The number of such “charge-offs” reached a record high in September of 2009, according to a recent report by Fitch Ratings.

Thirty-seven percent of respondents said they sought help for their debt. Most of these went straight to their mortgage or credit lender, while one-third of them sought credit-counseling or debt-management services.

Almost half of respondents said they would pay off their mortgage loans before credit card or auto debt. This follows historic trends, which show that consumers make payments toward secure real estate debt over unsecured credit cards.

A joint study conducted by the Junior Achievement and Allstate Foundation shows that 63 percent of prospective college students are altering their college plans due to the recession, reports Chicago Breaking Business. Within that 63 percent, 41 percent of students have increased their work hours to save for college, 21 percent are foregoing a four-year university for community college, and 15 percent may defer enrollment for a year.

The high unemployment statistics and large amounts of student debt that follows graduation have made many students apprehensive about paying for their education with student loans. According to the Department of Education, the student loan default rate increased from 5.2 percent in 2006 to 6.7 percent in 2007.

“Selecting a college and weighing whether to take on student loan debt are not solely education-related decisions; they are also major financial decisions,” said Junior Achievement president Jack Kosakowski.

For example, a recent report by WOWT-TV in Omaha noted that one elderly woman was robbed of $2,400 by a customer service representative when she provided him with a credit card number while making a payment over the phone.

The television station said that the woman was making a payment on her cellphone and had called the company with her card. After she filed a police report, the article noted that police soon arrested a suspect, apparently a former employee who also may have stolen numbers from customers at a company retail store.

Elsewhere, people have fallen victim to identity theft at the hands of unscrupulous waiters at restaurants or by having criminals go through their garbage in search of financial data.

However, growing technological sophistication also means that criminals can access one’s financial data with malware that’s loaded onto a victim’s computer without the victim’s knowledge.

Eighty-four percent of workers and 71 percent of retirees have taken action to improve their financial situation. The most popular approach is to spend less money, with 62 percent of workers and 54 percent of retirees cutting back. Paying down debt and increasing funds in a savings account have also helped Americans get back on track. Principal Finance Group is now launching a campaign titled “America Rebuilds” to support these efforts.

“The country has been through tough economic times, but the resilient spirit of Americans is evident everywhere, including in their desire to rebuild their financial futures,” said Mary O’Keefe, the company’s senior vice president and chief marketing officer.

Principal Finance Group is teaming up with Time Warner to promote consumer education through a CNN series titled “Building Up America.” Financial calculators, tips and videos available on through “America Rebuilds” may also help consumers strengthen their finances. Those seeking a financial advisor can find help through the website.

Last year’s savings rate was the highest experienced since 1998, according to the Associated Press. However, a recent report by the Commerce Department showed that savings dipped in January, from $467.9 billion to $367.2 billion.

To find ways to improve finances check out “6 Areas in your Life Where You Can Save Money“.

Most parents pay their children an allowance for performing household duties, such as washing dishes, doing laundry, and taking out the trash. Children benefit from both the job responsibility and the earnings that come with it.

“Part of the idea with an allowance is to make sure you reinforce that in order to earn money, you have to do certain things,” Northwestern Mutual financial literacy educator Meridee Maynard told the AP.

Parents can expand the simple chore-for-allowance rule by advising children on making smart financial decisions. Starting a savings account, even in the form of a piggy bank, and teaching children to “invest” part of their allowance for greater returns down the road will build the concept of savings and budgeting. Many families are suffering through the recession and trying desperately to rebuild their savings accounts. Counseling children on the importance of financial literacy while they’re young may help prevent financial hardships in the future.

A study conducted by the Economic Policy Institute shows that between December 2007 and January 2010, the labor force declined by 6.3 percent for young adults but increased by 8.5 percent for workers age 55 and older.

“This is a troubling development, young adults are less prepared to deal with unemployment than other age groups. Without significant prior full-time work experience, many may not qualify for unemployment insurance, or the social safety net,” the EPI said.

The study also showed that young adults, defined as those in the 16-24 age range, only make up 13.5 percent of the labor force but maintain a 25-percent unemployment rate. The effects of the recession on the housing market have left many consumers struggling to make ends meet and alleviate debt. The job market, while seeing its highest growth in three years, is still in a state of repair.

The organization reported that both defaults and delinquencies on credit cards went up in November 2009, problems that Fitch tied to the rate of unemployment, which now stands at 10 percent. However, the company expects unemployment to at least remain at that level for 2010, saying it could also peak at 10.4 percent in the second quarter.

Fitch stated that delinquencies of at least 60 days reached a new high by the end of November, coming in at 4.54 percent. That was higher than the previous record posted in June of last year.

An increase in delinquencies could lead to future charge-offs, which also increased in November, although they were below a previous record set in September 2009. Defaults on cards increased from 10.09 to 10.68 percent for the month.

While some people may be having difficulties dealing with debt, a report from the Federal Reserve Board shows that the amount of credit has seen consistent drops since the fourth quarter of 2008. In November, total consumer credit declined at an annual rate of 8.5 percent.

A recent report by foreclosure listing website ForeclosureDeals.com showed that new foreclosures increased by four percent nationally but were down in many of the states hit hardest by the housing crisis. Foreclosure rates in Nevada and California fell 18 and 6.5 percent, respectively.

There were a total of 315,700 properties foreclosed upon in January, according to the report. While this remains 15 percent higher than January 2009, it’s 10 percent lower than the December 2009 figure, which may indicate a tapering-off in the market, according to James Foxx, a business analyst for Foreclosure Deals.

“As sale prices continue to rise as we’ve been seeing, now is the time to buy low and get a great return on an investment,” Foxx said. “There are some excellent opportunities out there.”

South Dakota, Wyoming and New Jersey showed the largest decreases in foreclosure rates during the past month. Rates grew significantly in Montana, New Mexico and Nebraska since January of last year.

This news should be taken with a grain of salt, however. According to Freddie Mac’s release of fourth-quarter and full-year financial results for 2009, “[T]he housing recovery remains fragile, with significant downside risk posed by high unemployment and a potential large wave of foreclosures.”

A recent Boston.com column by financial planner Jill Boynton offered tips for those hoping to keep their personal finances in check. The first step is to determine one’s budget. A student should base his or her choice of destination, means of transportation, and other expenses by calculating how much money is available.

Stocking up on groceries from a local market is often less expensive than dining out. Many students will have to rely on credit or debit cards for some of the trip’s expenses. Boynton also advised that these individuals avoid high interest rates by taking out only as much as they can pay in full upon their return.

“Students typically have very high credit card rates, and your trip can easily cost double or triple if you charge it and then pay it off in increments,” the columnist wrote.

A recent survey by OnCampus Research showed that a growing number of students are considering their budgets when planning spring break. Sixty percent of those who planned on traveling chose destinations within the United States, with 29 percent opting for places they could drive to.

For more tips on how students can save and improve credit visit the Credit Information section at FreeScore.com.