Kids who go away to college often experience many new freedoms once they're away from their parents' watchful eye. In the past, it's been a right of passage to make mistakes - and learn from them. But in today's economic climate, it's become more important for parents to help teens avoid costly mistakes.

"I encourage parents to help teens grasp the basics of personal finance before they head off to college," says Becky Knapmeyer, a vice president and financial center manager at Fifth Third Bank. "Unfortunately, I've seen the difficulties that result when teens don't know how to balance a checkbook or stay within credit card limits."

Begin with a basic checking account
"Before teens head off to college, parents can help them open a student checking account. Parents and teens can also opt to receive free e-mail alerts to help them track the account's balance and avoid costly overdraft fees. When the student finally does go off to college, parents can transfer money into this account once a month for free.

Go easy when using credit
To establish a credit history, young adults need to learn how to use credit wisely. "At Fifth Third, any 18-year-old, with no existing credit, attending college maybe approved for a Secured MasterCard® Credit Card. This account offers free Internet banking and bill paying. 

To help young adults develop a good credit history, Knapmeyer encourages them to use no more than 75 percent of their available credit. For example, if a student has a $500 credit limit, they should have no more than a $375 charged to their credit card at any time. Although they can avoid paying interest by paying off their monthly balance in full, they should - at the very least - make minimum monthly payments. This is not only essential to building a good credit score, but it also helps them qualify for higher credit limits.

"Maintaining a good credit history can also help people obtain lower interest rates on car loans and mortgages," Knapmeyer continues. "Also, many employers today review credit histories when evaluating job applicants."

Guard your account numbers
"With many teens living in dorm rooms, it's important they learn to keep all checks, debit cards and credit cards in a safe place," Knapmeyer continues. "Also, they need to make sure personal identification numbers (PINs) are kept confidential - and can't be guessed easily. Using an address or birth date is very common."

Get to know your banker
Knapmeyer also advises young adults to develop a relationship with their banker. "We enjoy helping people manage their finances at every stage of life. Getting to know our customers as young adults benefits us both."

For more tips on helping young adults manage money, contact Fifth Third at (866) 475-4201 or visit 53.com.