There are a number of difficult conversations parents have with their children along the path to adulthood. One topic that parents rarely tackle is money management, but having a heart-to-heart about money and how to manage it may save your child from financial heartache down the road.

Today, the average annual cost of an education at a public university is more than $10,000 and at a private university it is upwards of $27,000, according to The Princeton Review. In addition, graduates typically accrue more than $3,260 in debt on a total of six credit cards, according to the latest figures from student loan provider Nellie Mae. While students today are inundated with offers of credit, many don’t fully understand the power of credit or its long-term impacts.

Now, more than ever, it is imperative that parents discuss the basics of the credit process and share money management tips with their children.

Knowing the nuts and bolts of credit and the benefits of successful money management provides a solid foundation from which your child can grow as his or her income and financial responsibilities increase.

With this in mind, here are some helpful tips:

Start off on the right foot. If you have not filed the Free Application for Federal Student Aid (FAFSA), the first step in the federal financial aid process for the upcoming school year, do it now. Federal student aid is a great way for college students to gain funding for their educations and includes low interest loans that are not required to be paid until after graduation. If you have to pay for school, one of the best techniques to escape with as little debt as possible is through this process. The fastest way to file a FAFSA is online at http://www.fafsa.ed.gov/.

Which credit card is right for you? As your child enters the world of credit, it is important to understand the basics of the industry as well as the most appropriate type of credit card for his or her potential spending needs. Discuss interest rates, how they work and the impact they can have on credit in the short and long term. Help your child create a budget and make sure they are aware that credit is not just “free money,” but must be paid and has repercussions if not.

Know the consequences. In addition to explaining the credit card industry, be sure to make clear how these convenient pieces of plastic fit into the bigger picture. Make your children aware that late payments on credit cards now or even possessing too many cards can affect whether or not they will be able to afford their dream home in 10 years.

Be alert. Discuss the methods and tools that will allow your child to better manage money. For example, give your child the gift that will educate and protect, Equifax Score Power. This resource affords users instant, online access to their credit scores and Equifax Credit Reports and provides a detailed explanation of the report, which helps students understand how lenders view credit history and how their actions may affect their score in the short and long run.