Learning to manage money was the central theme Jean Chatzky stressed to students during her speech at John R. Emens Auditorium on Monday night.
"If people understood mortgages and credit scoring, if we were responsible for our own finances, we would not be in the situation we are today," Chatzky said.
As the keynote speaker for Financial Literacy Week, Chatzky focused her presentation on offering common sense answers to complex financial questions. More than 100 people attended the lecture.
Her presentation was based on her new book The Difference: How Anyone Can Prosper in Even The Toughest Times.
"The difference between you and Warren Buffet, Rachel Ray and the creators of Myspace," Chatzky said, "is those people were involved and well-liked during school, they were leaders at work and they were always looking ahead to what would happen next."
Chatzky stressed at the beginning of her speech that financial literacy among students is very important. The 2008 Jumpstart Exam, she said, identified that high school seniors scored 48 percent on a test regarding financial literacy.
A Harris Interactive Survey found that 30 percent of Americans are either wealthy or financially comfortable, and 87 percent of these people were not in that position ten years ago. Chatzky said that anyone can rise to the top if they follow the four steps outlined in her book.
During her presentation, Chatzky outlined eight characteristics that can make a difference in finances and personal life.
Junior Patrick Farrell said that information about investing from Step 7 seemed especially beneficial.
"She talked about Vanguard Investing," Farrell said, "and now I really want to look into it."
Vanguard is an investing firm especially suited for the needs of college students.
Chatzky suggested that students put together a financial plan, start early, stick to plans, diversify their stocks and consider investing in real estate.
Information about the difference between student loans and credit card debt was helpful for senior Adam Rice.
"Repaying student loans seems like the better way to go," Rice said, "and she said it was more important to focus on."
Junior Kelsey Nielsen said that she would benefit from the information about habitual savings.
"She made me consider savings for retirement, since I don't have any student loans to deal with right now," Nielsen said.
Chatzky explained that Americans are terrible savers because savings offer delayed gratification. However, she said visualization of a nice retirement could help a person moderate their spending habits.
Saving diligently is just one way Chatzky identified to take charge of making the difference.
"Making the difference," Chatzky said, "is a choice you have to make, and it's going to be a challenge."
Steps to wealthFrom "The Difference"1. Make a decent living2. Spend less than you make3. Invest for the long term4. Protect your financial life with insurance and an estate plan
Make a differenceEight Characteristics and Habits That Make a Difference from her lecture1. Happiness and Optimism2. Resilience3. Connectedness4. Passion5. Intuition6. Habitual Saving7. Invest in Stocks8. Gratitude: the Karma Kickback
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