Almost half of all the professionals I know complain about either their student loan payments or their credit card payments. A few can't even afford their own place because their debts are so high. What are college students doing wrong?

I believe that we simply don't teach our young people how to wisely manage their finances. Personally, no one ever sat me down and talked about credit, interest, saving and debt. This is partly because my parents didn't understand those things either.

Most college students don't understand the consequences of credit cards. The average undergrad in 2004 had four credit cards and over $2,000 in debt. Seniors had the highest balances, probably because over time it simply builds up.

The average grad student had $5,800 in credit card debt. They simply don't realize that they will be paying this credit card debt well into their 40's. That makes credit cards the first mistake college students make.

The second mistake involves those precious student loans. Parents like to believe that those loans go to college expenses. But in fact, many college students use their student loans for other things as well. I bought a new refrigerator one year with some of mine.

Student loans are intended for tuition, room and board and books. That's what you should spend them on. Don't take out more than you need. If you end up with extra funds, put it in a nice money market account for next semester's expenses.

Lots of college graduates are unable to handle their student loan payments. Some are paying in excess of $400 a month to student loans. Remember that these are loans that you will pay back for 20 years, so take them out wisely.

The third mistake is a result of credit cards and student loans. Many college students are destroying their credit scores. I did. And most lenders totally understand when I explain that I was a college student. The good news is that with time, you can have a perfect score, as I do now. But it will take time.

Your credit card debt is going to follow you for most of your life. If you overcharge, don't pay the bill on time and go to the bar on your card every night, you will find that you aren't able to get a car loan, a home loan and in some cases, you won't be able to find a job. Take the time to learn about your credit and what affects it. Get it on the right track.

Part of the college experience is learning how to live on nothing. I remember when my husband and I could eat off of $40 all month. The problem is that many college students don't know how to budget. In fact, they hear budget and they think that they will never have fun again.

But a budget isn't a restraint, it is a planning tool that enables you. You have to learn how to handle the money you have coming in and out. These are tools that will help you not only in college, but for the rest of your life. Budgeting is essential for any successful financial plan. It helps you in paying off those student loans and in saving for retirement.

If you are a parent, make sure that you teach your children how to successfully manage their money. If you are a student, start learning on your own. The future financial success of the young depend on strong financial management tools.

Martin Lukac, represents http://www.RateEmpire.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies! Visit http://www.RateEmpire.com today