(U-WIRE) Colleges are not preparing students to manage their money effectively, said author and former financial analyst Suze Orman.

Orman, author of the new book The Courage To Be Rich, said colleges owe it to their students to teach them the “language of money” just as they teach foreign languages and literature.

“Nobody talks about money and handling money,” Orman said in a telephone interview from New York. “Students don’t have a clue how money works because their parents don’t have a clue how money works, and parents don’t know because their parents really didn’t know.

Orman, who has appeared on “The Oprah Winfrey Show” to counsel college students about credit card debt, bemoaned the presence of credit card solicitors on college campuses. Orman said if she could offer one piece of advice to students, it would be to avoid credit card debt.

“I know banks have solicitors on campus to sign kids up for credit cards, and that (students) receive pre-approved cards in the mail,” she said. “But credit card debt dooms your financial future.”

Orman said many students are graduating from college owing more in credit card bills than they owe in student loans. She said when she lectures on college campuses, most students she talks to are chiefly concerned about their debt in student loans. She said part of the problem is students don’t know the difference between “good debt” and “bad debt.” Orman characterizes student loans as good debt, and said students should not be overly concerned about their educational debt.

“Most students feel burdened by their student loans,” she said. “A student loan is the best investment you’ll ever make, and you should repay it with joy rather than regret.”

But students should try to avoid credit card debt, which Orman labels as “bad debt,” as soon as possible. While Orman said she does not believe students should avoid credit cards entirely, it is important to learn how to use them responsibly, including paying off the balance each month.

Students already in debt should pay more than the minimum balance on their cards each month and contact their credit card companies to get a lower interest rate on their cards.

“When you feel pressured by your debt, you are powerless, and potential employers can see that,” she said. “People hire you because of what they see in you, not what they see on you.”

In addition to avoiding credit card debt, Orman stressed that students should begin saving and investing for their futures. She said every student should put at least $25 a month into investments such as a Roth IRA.

“Don’t tell me you don’t have $25 a month,” she said. “You do, you just don’t know where you are putting every dollar you make. If you go to the movies with your friends, or go to a bar on the weekend and have four or five (drinks) through the course of the night, you had the money to invest right there.”

Most importantly, Orman said, it’s not too late to change spending habits.

“Students still have time on their side. You have a world of opportunity out there,” she said. “Money problems are non-existent in your teens and 20s because you still have time. When you get older and don’t have any savings, you learn what true problems are.”

-by Tammy Imhoff, U-WIRE Washington Bureau