Perhaps it is fair to say a dose of debt education is a meaningful part of your college savings plan for your college age kids. After all, one penny saved is one penny earned.

Keep a budget. Planning expenses will help keep spending under control, Mrs. Smith says. Dr. Lyons also advises parents to sit down with their kids and work out a four-year financial plan, including how much students can afford to borrow and how their career choice will position them to repay their loans in the long run.

Pay bills on time. For a student who does use a credit card, staying current with bills is important in building a good credit history. The credit history is essential in securing loans for large purchases including automobiles and homes; prospective employers and landlords also might run credit checks on an applicant.

Be careful with that card. Universities are becoming popular scenes of identity theft, Dr. Lyons says. Some students are too lax with the protection of their account numbers -- whether they share an account number with a friend to make an online purchase or leave a statement unattended in their dorm. Students and parents also need to be vigilant about reviewing statements for suspicious charges.

Get a good deal. The best way to use a credit card is to pay it off each month. But for students who anticipate carrying a balance, get the card with the lowest rate -- regardless of the introductory rate it offers, Mrs. Smith says. Parents can help students understand other terms of the card as well, including late-payment penalties and whether there's a universal default clause that will up the interest rate if a bill isn't paid on time.

Don't defer the interest on student loans. If possible, make interest-only payments while still in school and it could save thousands of dollars in finance charges, Mrs. Smith says. Interest folds into the principal after graduation, she adds, setting up a student to pay interest on the loan's interest.