Get a Financial Life: Personal Finance in Your 20’s & 30’s
Beth Kobliner is a certified financial junkie. She has written about personal finance for the New York Times, Glamour, and Money Magazine. She has appeared on “Oprah” and “The Today Show,” and she has an upcoming TV series on PBS called “Your Life, Your Money.” I recently met Kobliner at the Campus Progress National Conference, where we spoke to an audience of college students about getting a handle on their finances. Kobliner offers up sound advice for young adults in her new book Get a Financial Life: Personal Finance in Your 20’s & 30’s, as well as on her website. But Beth’s advice isn’t just for the 20-30 set. Her practical wisdom is great for anyone who wants to get a better grip on their financial lives.
Get a Financial Life is broken into several helpful sections: expense tracking, banking basics, debt, investments, insurance, retirement plans, home ownership, taxes, and military benefits. I found the chapter about debt to be really enlightening. Kobliner explains the basics of credit cards and tells readers how to get the best deal when they’re shopping around for a loan. The section on buying a car was really helpful – she advises consumers to do their homework before they hit the car lot to get the best deal.
The chapter on “All You Really Need to Know About Investing” is great for someone like me, who doesn’t really understand the ins and outs of money market funds, stocks, and mutual funds. I also found the chapters on retirement planning and home ownership to be really interesting. Both chapters take all the complicated financial information and break it down so the average Jane can understand it.
Follow me after the jump to read my interview with Beth, and to sign up to win a free copy of her book. She’s got some great advice for parents about how they can teach their children about money.
1. In your book you encourage twenty- and thirty-somethings to take control of their finances. What inspired you to write your book?
Early in my career as a financial journalist, I talked to thousands of financial experts to get their take on what the average person should do with his or her money. I finally realized that nobody was really focused on informing young people about these issues, so I wrote Get a Financial Life to address those topics.
2. Do you feel that financial advice should be given to people even younger than their twenties?
Absolutely! It’s crucial at every age. The earlier young people are taught the basics of how to handle money, the better they’ll understand those principles in the long run. Likewise, the younger you start building good financial habits, the more time you have for them to work in your favor. Teens can get Roth IRAs and if they do, the power of compound interest can be really spectacular: $500 invested at age 17 can grow into over $20,000 by the time you retire.
3. You seem to be interested in teaching money matters to elementary school aged children. Why do you think this is important? How do you think this could happen?
At this age it’s about looking for teachable moments, and making personal finance a part of everyday life. Shopping together is a good way to casually, consistently show the value of thrift by steady example rather than lecture. For example, when you shop with your child at the grocery store, you can walk her through the choices on display and choose items together. A more direct way to discuss finances is to set up young children with their own bank accounts so they get into the habit of saving part of their allowance and birthday money — instead of spending it all at once. Overall, of course, the message should obviously be kept simpler at younger ages.
4. How have you taught your own children about money?
I try to teach my children by using examples they can understand. For example, back when my older son was in the third grade, he discovered that he was only getting around 0.5% interest on his savings in a so-called ‘œhigh-rate’ money market fund. So we took him into the bank and got him into a five-month CD that paid the equivalent of 5.1% a year. Before that, every $100 that Adam deposited was only earning him 50 cents a year. Now the same amount makes more than ten times as much. He is still pretty young, but if he had left his retirement savings in that ‘œhigh-rate’ account, the interest on his little nest egg wouldn’t have been enough to keep up with inflation, much less provide much income.
5. Is the advice in your book only for people in their 20’s and 30’s, or would you recommend it to anyone who is trying to get a grip on their finances?
It’s definitely for everyone! Different age groups have different financial challenges, but investing choices, buying a home, and dealing with debt ‘“ just to give a few examples — are issues that people of all ages face. The recent market downturn has hit people in their 50s and 60s especially hard because their 401(k)s don’t have as much time to recover, for example. On the other end of the age spectrum, it’s the youngest kids that will have to deal with the long-term fallout of our current economic woes. But they’re also the ones that have the greatest opportunity to build healthy financial lives for themselves if they start with the right building blocks.
To win a free copy of Get a Financial Life, leave us a comment about why you want to read the book. A winner will be selected on Monday.
At 31, I’m in the process of really taking control of my finances. I feel overwhelmed by the process of planning for retirement, figuring out what investments seem like the right choices, and ensuring that I have enough cash on hand to weather a potential job loss. This is further exacerbated by living with a partner who has her financial head in the sand – she invests her part in the household expenses, but all long-term planning ends up on my plate. This book looks like a great, straight-talk way to make some decisions, and maybe even engage my partner in long-term financial planning!
I’m 25 and looking down the barrel of the consequences of my financial meltdowns and shortcomings from the last few years, and my job (doing financial reps’ case transcriptions) is bringing this into painful focus. I’m at a place where I need to, at least, start carrying a balance in the bank and get my ducks in a row.
So I’d love to have this book, of course. Here’s hoping.
I’d be really interested in the book although I’m out of my 30s now. I feel like I’ve done a pretty good job with what I’ve had but I continunally feel like I’m behind in my retirement savings.
Like Debra, I am no longer a 30-something. This is really good information to read over and over. My brother-in-law IS a 30-something, and I doubt he’s saved more than a few dollars. He alone makes more money than I and my husband make together. And, his girlfriend makes way more than he does. Yet, they seem to spend their money on lavish vacations and high tech toys. I plan to give them the book (but not until after I’ve read it first).
I’m 23 and fresh out of college. I landed a job as a contractor for NOAA the day before I walked for my graduation. I quickly had to choose where and how to invest for my 401k. I’m still clueless. I just knew investing and saving was necessary. I really need and want to educate myself on the matters of money. Just yesterday I joined mint.com to monitor my funds more closely and to help me work towards establishing a future for myself.
I read lots of finance books and I’d love to skim this one and then pass it on to my 20-year-old son! He’s well on his way already to a good financial life, even while still in college, he has a budget and close to $2k in a Roth he started at age 18.
I would like a copy of this book to share with my life partner who is a 30-something and not to into personal finance, though we did just buy a house together and we are striving to get out of dbt and live on a strict budget. I think this book would also be great to pas along to my two nieces, one just out of college and the other just starting. So if you give me this book, I will spread the good news to at least two other people, who are connected to many other 20-somethings through Facebook and other media.
I am in my late 40’s and unfortunately was never taught good money habits. My family’s bill paying process was horribly stressful and I always would hear, “we’re just robbing Peter to save Paul”, so I thought we were in danger of going to jail as well as being poor. So now I am finally in the process of taking control of my finances and it’s terrifying. I want/need to get a handle on this because as of right now, if I were to lose my job, (and hours at work have been cut)I would be out on the streets, destitute & struggling.
My girlfriend and I are both in our early 20s, fresh out of college and starting careers. We have no debt other than $30K in college loans, and we’re doing pretty well with our simple finances. However, over the next decade, we want to hold a wedding, go to grad school(s), start a family and buy a house, and it seems pretty impossible from here. I want to know what we can do to prepare wisely for our plans for “real” adult life, before we end up making costly mistakes.
I am fascinated by the world of finance! I was raised by people with no financial sense and am now trying to understand how I can gain control of my money.
Well, if you insist, I’ll have to throw my name in the hat 🙂 Why I want to read it? Same reason I want to read the other books on personal finance topics – to take charge of my future now that I am in mid 20s. I am doing pretty good with some of the topics, but house buying and some of the other topics are still fairly new to me so anything will help.
Great news, everyone who commented! Beth gave us 10 additional copies of her book, so everyone who entered the contest is going to receive a copy. I need you to e-mail me your mailing address at serena@queercents.com.
Thanks for playing everyone!