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will not take care of that. But that same employer may provide a lot of tools and resources, such as tuition re-imbursement, matching your retirement savings in a 401(k) or similar savings vehicle, and subsidized insurance of all kinds.

      Later you will hear from Role Model Bob Moritz who heads the U.S. firm of PwC. The auditing and consulting giant is leading the way on a new trend in employee benefits: helping to pay off student debt.

      But you must know what you’re entitled to, and proactively make sure you maximize those resources. Take the time to educate yourself. We live in a time when careers are cobbled together, and the path to success is more muddled than ever.

      When it comes to investing, beware. What looks like a great investment vehicle may have hidden fees. Role Model Tony Robbins has talked extensively about the damage high fees in company-run 401(k)s have done to countless Americans’ retirement plans. We’ll talk more about that in the investing chapter, but some of the perfectly legal fees are alarming.

      Reading the fine print is mandatory. I interviewed countless educated people in the housing bust who signed mortgages that were not what the so-called financial advisor verbally said they were. Then, when the loan became unaffordable, those advisors simply pointed to the contract the consumer had signed.

      You are your own best advocate. Step up to the plate.

      The Role Models in this book have one thing in common. They’re all high-achieving, inspirational individuals who share a deep desire to help the next generation.

      You will learn much from the Role Models in this book including:

       How to manage and pay off debt

       How to prioritize spending money

       How to balance the complicated relationship between friends and finance

       The best tools and resources to get started and continue investing

       How keeping healthy will pay off financially

       The best financial ways to approach where you live

       Strategic and savvy ways to manage your career

       Family matters and how they impact financial decisions

      You will also benefit from a fantastic team of experts, in all of these fields, who have graciously lent their wisdom to this project. They all believe we need to do more to educate young people about finances.

      I will also chime in with my own advice at times. I’ve learned a lot in my years as a financial journalist. I’ve also made almost every mistake in the book, and I continue to fumble my way along at times. In some ways this book came out of my own realization that whatever age or life stage we’re at, we all need to pay more attention to our finances.

      The title of this book was inspired by my friend and mentor Jack Doran. He was being promoted to a new and exciting job within Thomson Reuters, and it was my turn to move up and take over his old job running the day-to-day operations of the U.S. business video syndication group. I love being a journalist, but I wanted no part of management. I explained that to him. He looked me straight in the eye and said, “Bobbi, it’s time to be the grownup.” He went on to say that while I was terrific at reading a teleprompter, and could write a script about almost any business topic in my sleep, I needed to accept the fact that it was time to come to terms with being an adult and the responsibilities that come with it.

       You must be responsible for your own financial planning

      And from that conversation came this book. I hope you find it inspiring, and that it motivates you to start approaching your financial life from a grownup perspective. Most of all, I hope you make the decisions that are right for you and that you use money to live your dreams.

       CHAPTER TWO

       A DEBT PRIMER

      YOU WILL NEVER BE A FINANCIAL GROWNUP if you have bad debt. Bad debt is anything that keeps you from being financially free. The most common is credit card debt. Student debt can also weigh down your life.

      But there’s also debt that can be used to give you financial freedom. Having a mortgage is often the most realistic way to own a home, which can provide financial stability. Most of us need to borrow to buy a car. Knowing the difference between good and bad debt, and how to manage both, is essential to being a financial grownup.

HEATHER THOMSON

      • CEO, YUMMIE TUMMIE

      • STAR OF THE REAL HOUSEWIVES OF NEW YORK

      MY FINANCIAL GROWNUP MOMENT

      Having credit card companies offer me credit lines as a freshman in college. Without an understanding of the interest rates, late fees, and over-the-limit fees, I got myself in a bit of trouble and had a quick reality check.

      MY LESSON TO SHARE

      There is no such thing as free money. Credit cards come at a cost. Unless you pay on time every month and use them to your benefit, they can be lethal. Read the fine print and don’t use a credit card for credit, but rather to build it!

      DEAL WITH YOUR DEBT

      HEATHER HAD AN experience that’s all too common. College campuses are jam-packed with representatives from credit card companies who make it as easy as possible for students to sign up for their first credit card. It’s no surprise that a 2015 PwC survey found that more than half of young adults (53 percent) ages 23 to 35 carried a credit card balance in the last 12 months. In fact, young adults are so tight on cash that nearly 50 percent don’t believe they could come up with $2,000 for an unexpected need within the next month. Living that tight is a recipe for financial disaster. Adding to that recipe is the fact that, according to the same PwC survey, only 8 percent of the respondents demonstrated high financial literacy.

       There’s no such thing as free money

      For many young people, their first credit card, and the bill that soon follows, is their first real exposure to adult financial issues, just like it was for Heather. A credit card sounds great – no more asking mom and dad for money. But the consequences of not getting debt under control are serious, so paying it down is the highest priority when it comes to becoming a financial grownup.

      THE BEST WAY TO PAY DOWN DEBT

      Credit.com’s Gerri Detweiler, author of numerous books on debt has this advice:

      Face Reality by Adding Up the Numbers

      Getting a handle on your debt is the first and most essential step, but it’s also one of the hardest. You probably have a rough idea of what you owe on each card, and know your minimum payments, but, as any credit counselor will tell you, many consumers significantly underestimate the amount of debt they owe.

      If you haven’t done so already, make a list of all your debts, including balances, interest rates, and monthly payments.

      Be Realistic

      Can you dig out on your own or do you need professional help? According to PwC, only 12 percent of young people seek help on debt management.

      There is free help available. For example, you can use an online calculator, at many websites including credit.com, to see whether you can afford to pay off your cards in five years or less with what you’re making now. You may also consider consolidating your various debts into one account. As always, do the math and figure out if that’s the best move for your current situation.

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