Mellody's Mail: Post-College Financial Planning

QUESTION: I have two daughters graduating from college in the next year. One is extremely concerned about budgeting and investing, and one will start out her life with college loans. Are there any resources available to teach these very diverse viewpoints budget basics and money management?

ANSWER: Although your daughters may be graduating from college with two different financial perspectives, there are some basic concepts they can both apply as they enter the adult world. As an important starting point, your daughters should first organize their financial lives and create a budget. The best way to do this is to divide their current expenses into fixed and discretionary categories. Fixed expenses are those essentials which they cannot live without, such as housing, food and transportation.

Discretionary expenses include items such as entertainment, vacations and unnecessary material items. You should encourage your daughters to ask themselves questions like: "Do I really need a latte every morning or could I get by with a cup of regular coffee?" and "Do I have to take a cab to work or could I get up earlier and take the bus?" Simply exercising degrees of discretion will ultimately increase their cash flow.

In addition to dividing their expenses into categories, they should gather all of their respective bills -- including utilities, rent, car payments, auto insurance, student loans, etc. -- and figure out exactly when, who and what they owe each month. By doing this, they can ensure they have the proper funds to pay each bill when it is due. Be sure to emphasize the importance of paying bills on time, as late payments can affect their credit ratings and a poor credit rating can negatively impact their ability to purchase a home or car, get a job, rent an apartment and more.

I also recommend that your daughters begin the practice of paying themselves first. The concept of "paying yourself first" means that with each paycheck they earn, they automatically defer a portion to a mutual fund or other investment account. With as little as $50 a month, they can start a lifelong practice of saving and investing which will benefit them tremendously in the long run.

Lastly, with regard to credit cards, I strongly recommend that your daughters limit themselves to one credit card each for emergency use only. On average, American households owe $8,000 in credit card debt. Encourage your children to use their debit cards instead to prevent them from spending more than they have.

By taking these simple steps, your daughters will form positive financial habits which will benefit them throughout their lives.

E-mail Mellody with your personal finance questions.

Mellody Hobson, president of Ariel Capital Management (arielmutualfunds.com) in Chicago, is Good Morning America's personal finance expert. Ariel associates Matthew Yale and Aimee Daley contributed to this report.