1. Create a budget. If you don't have a written budget, create one and stick to it. If you need to cut back on expenses, start with all those "nice to-do's" like eating out, travel and entertainment. Better to use that extra money to build up a stash of cash (an emergency fund).
2. Build an emergency fund. Make sure you have enough to cover a minimum of three months of essential expenses -- and keep this money easily accessible, like in an interest-bearing checking account or savings account. Depending on your job security and your other assets, you may want to have up to 12 months of expenses in reserve.
3. Stay on top of credit card debt. Pay it off every month if possible. If you're carrying a balance, think about ways to reduce your interest rate. For example, can you negotiate with your credit card company or transfer your balance to a card with a lower rate?
4. Start saving for retirement. Contribute to a company-sponsored 401(k) or other retirement plan if it's available. At least contribute enough to take full advantage of any employer match. Don't leave this "free" money on the table. Ideally, if you can start putting aside 10 percent of your yearly salary now, and keep saving at this rate throughout your working life, you should be in great shape when you reach retirement age. Remember, it's not only how much you have to invest, but also how long you have to invest that counts. Right now you have time on your side.
5. Protect yourself -- and your finances -- with adequate health insurance. Being young and healthy is no guarantee against an accident or unexpected illness, either of which could cost many thousands of dollars. Don't even think about neglecting this essential protection!
These five moves are a good starting point for anyone who wants to get back into financial shape. But there's so much more that can be done to build our collective financial strength. Parents, educators, employers and individuals -- we all have a role to play in increasing financial literacy. The survey results provide positive motivation for all of us to get with the program. If people in their 20s are making responsible money management a priority, this could signal a new era of financial responsibility among Americans. And it's not a moment too soon.