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Last week I wrote about the challenging job market for soon-to-be college graduates. This week, our attention turns to helping them manage their financial lives. The trick for elders guiding the grads is to keep it simple and meet them where they are. These six steps should help. (Note: I have updated previous columns that have covered this ground with updated information.)

Step 1: Pay attention to what comes in and what goes out.

Understanding where your money goes is the key to achieving any financial goal. It can help you determine how much money is available to accelerate debt payoff and what you can afford to save and invest. Plenty of apps can help — the mechanism doesn't matter, what matters is that you do it.

Step 2: Manage your student loans.

If you are one of the many who have borrowed from Uncle Sam, start by logging in to studentaid.gov and determine the amount of money you owe, the interest rates associated with the loan(s), and the length of time associated with each loan. The first payment won’t be due until six months after you graduate. During this grace period the government pays interest for subsidized loans, but not for unsubsidized ones. If you can’t make the monthly payment, consider the newly introduced Repayment Assistance Plan, which can reduce your monthly payment in exchange for extending the loan term. Regardless of the plan, automate payments so you never miss a month.

Step 3: Create a safety net.

As soon as possible, establish an emergency reserve fund. Try to accumulate enough money to cover six to twelve months of living expenses in a high-yield savings or money market account. You can usually find the highest interest rates at online institutions, but make sure that they carry FDIC insurance.

Step 4: Contribute to a retirement account.

Even if you have student loans, create the habit of saving for retirement. If your job offers a plan, contribute at least up to the match, if there is one. If there’s a Roth option, use it, because paying taxes upfront on contributions now, while in a low tax bracket, will likely pay off in the future. If you don’t have access to an employer plan, open a Roth IRA and start contributing now, using a mix of low-cost index funds.

Step 5: Compare health insurance.

Even if a recent grad has a health care option through an employer, it may be cheaper to stay on their parents’ health plan, which they can do until age 26. If using employer insurance, consider a high-deductible plan, which can be more affordable. Next, learn about the company retirement plan.

Step 6: Guard against fraud: Freeze and manage your credit.

One powerful way to prevent bad actors from gaining access to your precious credit file is to freeze it. You need to contact the three main credit-reporting companies — Equifax, Experian, and TransUnion — once you complete the process, nobody can open new credit in your name, including you! That means if you plan to borrow money for a house or car, or if you are opening a new credit card, you need to thaw your credit file, then refreeze it once you have obtained the money you need. To ensure that your credit report is accurate, go to AnnualCreditReport.com. If you identify an error, dispute it (in writing), and include copies of supporting documents.

Finally, here’s an idea ​for a great graduation gift: the 30th anniversary edition of Beth Kobliner’s "Get a Financial Life: Personal Finance in your Twenties and Thirties." It remains the gold standard of advice for young people starting out!

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(Jill Schlesinger, CFP, is a CBS News business analyst. A former options trader and CIO of an investment advisory firm, she welcomes comments and questions at askjill@jillonmoney.com. Check her website at www.jillonmoney.com)

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