What advice do we give graduates for the worst economy most of us can remember? The same advice as for when times are flush.
Lives are longer than business cycles. Start saving today, even if you have loans to pay off. Use some of your graduation checks if you don't have a job.
One of the countless benefits of youth is the almost unimaginable horizon to let savings compound. Today's 21-year-olds can expect to live past 2065. Invest $50 a month between now and then, and you'll leave an estate of $283,000, if you earn 6 percent annually.
Make 8 percent - not inconceivable if you buy mutual funds that invest in developing countries such as India and China - and you'll wind up with $643,000. Stocks are on sale during recessions. Start contributing to a Roth IRA or a 401(k) as soon as you get a paycheck and never tap them until you retire.
Find work you like. Follow your passion. As more and more research shows, and as numerous ex-managing directors at Wall Street banking companies might now testify, you'll be happier than if you follow the money.
Try different careers. Our schools are pretty good at teaching the skills and theory of the workplace but not so great at letting students experience the office, store or factory before they are thrust into it. Designing computer games may seem more appealing when you're playing Spore than when you're crunching code and eating cold pizza at 3 a.m. to try to make the ship date.
Try on different internships. In recessions, employers are inclined to be especially interested in cheap or free labor. Design your own internship -- offer to work free at an interesting company and live with your parents.
Speaking of factories, don't assume U.S. manufacturers are dead. The goods and equipment they produce are worth more than ever. The people they're hiring have changed. There are fewer of them, to be sure. But they're more highly trained.
Avoid debt. Even if you can defer repayment of student loans, try not to. Interest still may accrue and leave you with a much bigger bill than you started with.
The credit card "reform" bill about to be signed by President Barack Obama does little to end the complexity or expense of credit card borrowing. Rates will still be well into double-digits even as bank borrowing costs are close to zero.
When you're paying, especially at rates of 15 percent or 25 percent, compound interest is the enemy. Never carry a month-to-month balance unless it's an emergency. Unlike mortgage interest, credit card interest isn't even deductible on your tax return.
