Chicago is one of the greatest cities in the world, and Jason Power--a philosophy major at Loyola University--was determined to make the most of it. There were concerts and plays, movies and restaurants, and Power, armed with his credit card, enjoyed it all. "I guess I spent a lot of money on entertainment," he recalls. "I really enjoyed eating out at nice restaurants, especially good sushi restaurants. But I thought it was OK to indulge yourself. It would have been depressing if I hadn't splurged once in a while."

But when the credit card bills started rolling in, things got a little depressing anyway. It wasn't long before Power reached his credit limit of $500, and more and more of his work-study job salary started going toward the monthly payments. Before he knew it, things had begun to snowball, and he was using his card to get cash and to pay for groceries. Sometimes his checks would bounce, and when he didn't have money for his phone bill, he borrowed from friends.

Lucky for Power, a generous uncle came to the rescue with a big college graduation check, covering his debts and helping him start fresh. After landing a job with a high-tech firm in New York City, Power became a lot more responsible about his financial habits.

"I was pretty haphazard about money in college," he admits, "but now I make sure I have money allotted for everything I need. When I use my credit card, I pay the debt quickly."

Unlike Power, you might not have a rich uncle to help you out if you get into a jam. That's why you need to be financially fit and learn to manage your money on your own. You can make your money go farther now and get ready for a great financial future. Here are the basics with current statistics provided by Bankrate.com.

FIRM UP YOUR SAVINGS

Get in the habit of saving money. Financial analyst Lorayne Fiorillo, author of Financial Fitness in 45 Days (Entrepreneur Press), advises, "Put half of your earnings into savings." That may be hard to do, but even if you're socking away a regular 10 to 20 percent, at least you're saving for the future.

Start accumulating money for college expenses, a set of wheels, or your own apartment, by opening a savings account. You can usually get started with $50 or less, and it's easy to withdraw money when you need it. Plus, your money will earn interest. Interest rates average only about 0.4 percent, but your money will be insured by the federal government.

If you've got a job, find out if you can have part of your paycheck directly deposited into your savings account. (Also, check into new online savings programs, such as the one offered by Emigrant-direct.com, which can offer a high interest rate of 3 percent.)

You may also want to consider a money market or CD account, which can be opened for as little as $100 to $500. These accounts usually earn more interest than a regular savings account--0.5 percent on average for money markets and up to about 3 percent for CDs depending on how long you leave your funds untouched. The catch overall with these accounts is that they usually have more restrictions when it comes to accessing funds.

CHECK-UP TIME

Open a checking account now, advises Janet Bodnar, a senior editor with Kiplinger's Reports and author of Dollars & Sense for Kids (Kiplinger Books)."Young people need to know how to handle a checking account before they go off to college," she insists. "A lot of adults confess that they ran into trouble in college because they were clue less about check registers or balancing their accounts. [Before you leave] high school is a good time to learn."

A checking account is a convenient way to make purchases without carrying cash. It's a safe way to send money by mail, and it gives you an accurate record (both from bank statements and your own checkbook records) of exactly where your money is going.

Checking account fees vary, so shop around for the best deal. Some banks even offer low-fee checking accounts for students. Typical fees average from about $3 to $10 a month, and you'll need to make an initial deposit of about $60 to $200 to get started. To open a checking account that earns interest requires a minimum deposit of about $450.

24/7 FINANCIAL WORKOUT

With automated teller machines (ATMs), you can manage your money 24 hours a day. You can make deposits, withdraw cash, or transfer money from one account to another. But be careful: Avoid too many trips to the ATM to withdraw cash, and always record transactions in your register. And stick with your own bank's ATMs. Most banks charge a fee of $1.50 per transaction for using a "foreign" machine. And don't forget to note those fees in your register!

Sometimes, your ATM card doubles as a debit card. You can use it to buy something, and the amount of the purchase is electronically subtracted from your checking account. So before you use it, know just how much is in your checking account. Then record the transaction in your register.

CREDIT CARDS: CRUNCH THE NUMBERS

When you turn 18 and head off to college or into the workplace, you'll probably find credit card offers in your mailbox every day. According to Teenage Research Unlimited, 42 percent of 18- and 19-year-olds have their own credit cards. They're a convenient way to make purchases without hauling around sacks of cash, and they can help you keep track of your spending. Even more important, using a credit card wisely lets you build a good credit rating, which is vital when you want to buy a car or a house.

But if you make too many purchases with a credit card, you can run into trouble. Keep these facts in mind:

* PLASTIC MONEY ISN'T FREE. Every purchase you make with a credit card is a loan. You have to pay it all back--plus lots of interest (sometimes as high as 30 percent!) if you don't pay the bill right away.

* BUY NOW, PAY LATER. Every month you'll receive a statement showing what you owe, and asking for a "minimum payment" of about 2 percent of your balance. If you owe $500, your minimum payment is just $10. If that's all you pay, interest will keep adding up, and it will take years to pay off your bill.

* GOOF-UPS DON'T GO AWAY. If you miss a payment, a negative mark will appear on your credit rating--that's your financial report card. It could haunt you for years and keep you from getting a car loan or a home mortgage. Many employers and landlords check your credit report, too, before offering you a job or an apartment.

FLEXING YOUR INVESTMENT MUSCLES

In a few years, when you're out of school and bringing in a steady paycheck, people will start talking to you about the stock market, retirement plans, and--yikes!--maybe some thing called a 401(k). This may seem very weird, after all, retirement is light years away. But don't blow it off." Young people may think, 'Why should I bother?'" says Janet Bodnar of Kiplinger's. "But if you put aside small amounts of money now, you'll be rich, rich, rich when you retire [if you invest wisely]. When your employer offers a retirement plan, start contributing from Day 1." Here's what you need to know:

STOCKS: When you own a share of stock, you own a little piece of a company. If the company does well, the value of the stock goes up, and so does the value of your investment. You can sell your shares for a profit, or you may receive a "dividend"--a portion of the company's profits--for each share you own. Historically, the stock market has gone up over time, and although the economy can have its ups and downs, diverse investments in sound companies have traditionally brought high returns.

BONDS: When you buy a bond, you're lending money to a company or a government agency. When the loan period is up, they'll pay you back, plus interest.

MUTUAL FUNDS: A mutual fund is a collection of stocks and bonds managed by an investment company. You can invest with as little as $500, pooling your money with lots of other people and receiving dividends on the investment profits.

INDIVIDUAL RETIREMENT ACCOUNT (IRA): This account is designed to help you save for your retirement years. In a typical IRA, funds are not taxable as long as you leave them untouched until retirement. You can save up to $4,000 a year in an IRA, and every dollar you put in an IRA decreases your taxable income.

401[K] PLAN: This employer-based plan lets you save for retirement by deducting money from your salary and depositing it in investments such as mutual funds. Some employers may match some or all of your contribution. And Uncle Sam won't tax a clime in your 401(k) until you retire. "The 401(k) accounts are more popular than ever," says Greg McBride, senior analyst at Bankrate.com, "because fewer companies are offering pension plans."

CHECKS AND BALANCES