It&39;s May and graduation season for high schoolers and college students around the country. I received a couple embossed high school graduation announcements from relatives just last night.

As students prepare to join the "real world" there is a unique window of opportunity for them to learn about credit and money management. I hate to be the crazy aunt who lectures everyone about credit (who am I kidding? I love being a credit geek), but there are so many problems that can be avoided with a little early warning. Here are a few ideas for subtle and not so subtle hints you can pass on to graduates.

Subtle Hints

• Send your graduate the gift of a small cross-cutting shredder for their dorm room or first apartment.
• Give them a subscription for a 1-year of Credit Monitoring. Equifax has a gift  certificate program online.
• Buy them a book about credit management or personal finance. I recommend John Ulzheimer&39;s new book called "Credit Reporting and Credit Scoring."
• Set your graduate up with a pre-paid credit card. It works like a real credit card except you set the amount they have to spend.
• Give a graduate an investment account or high yield savings account instead of a big cash gift.

Not So Subtle Hints

• Have "the talk" about personal finance facts of life. MarketWatch has an article about this online today and Credit.com has a whole section of the website just for people starting out.
• Use scare tactics. The credit system has a long memory. One set of late payments, collection account or financial mistake now could prevent your graduate from buying a home or a car several years down the road.
• Warn them to avoid credit card sign up tables like the plague. Using your credit to get a $2 t-shirt or frisbee is a terrible idea. Each application causes a damaging inquiry and each card opened will stay on your credit report for 7 or more years.
• Make your graduate opt-out of pre-approved credit card offers by calling 1-888-5-OPT-OUT or by going online to www.optoutprescreeen.com.
• Explain that the process of establishing credit for the first time is fairly quick and easy. They should wait until they have a good paying job and are financially to open their first credit card.
• Have them email me with their questions. I&39;ll be glad to set your graduate straight!

I&39;ve heard so many horror stories from consumers who graduated with $20,000 or more in debt. Credit impacts your ability to get insurance, buy a car, rent an apartment, sign up for utilities, get a cell phone, buy a house and more. It&39;s not something to be taken lightly.

The class of 2007 is smart, and with a few helpful hints from those of us who have seen it all before they should be able to navigate the credit system with ease. Happy graduation!