TIPS FOR THE NEW COLLEGE GRADUATE.

• Position: Brief Article

Thousands of new college graduates are heading out into the job market to begin lifelong careers. Although they may be well-prepared to tackle their new jobs, many will have graduated with substantial school debts and without having learned the financial facts of life. Here are some tips from the Financial Planning Association:

Determine your net worth--your assets minus your liabilities--as an assessment of your financial health. As a new graduate, you are likely to have few assets and lots of liabilities in the form of accumulated student loans and credit card debt--in shod, a negative net worth.

Even though your net worth is probably negative, calculating it is important because it provides a benchmark against which you can measure your future financial progress. For example, many college graduates will find good-paying jobs, then buy a car, clothes, lots of other consumer items, perhaps even a condo or new home. Their current income may pay the bills, but unless they are putting extra toward their student loans and credit cards, and salting money away in savings and investments, they are not actually improving their overall financial health. In fact, expensive purchases often add to the negative net worth. By measuring your net worth each year, you can see if you are reducing your debts and building toward a positive net worth.

Get proper insurance. Health insurance will be one of your first concerns, since you likely will be dropped from your parents' coverage upon graduation. Your new job will provide health coverage, but it may not kick in for a few months, or you may be a few months finding a job. In the meantime, consider buying a short-term medical policy, which can be pretty reasonable, especially if you are young and healthy. Some colleges offer temporary coverage for recent graduates.

Often forgotten is renter's insurance. This covers loss or damage to your personal property, which is not covered by your landlord's insurance. It usually is very affordable--say $200-300 a year. As a new graduate, disability insurance is more important than life insurance (unless you already have dependents), because you are more likely to be disabled and lose job income than to die. Shop carefully for auto...