In an economic climate that seems to reflect nothing but pessimism, one finance expert chooses to see the glass as half-full. Financial journalist Farnoosh Torabi believes that young adults can lead a fun life without emptying out their bank accounts, and she's made it a priority to spread her message across the country.
To promote her ideas, Torabi has been touring colleges across the U.S. with Bank of America, working on a campaign to teach young adults about wise spending. She is also promoting her first book, entitled "You're So Money: Live Rich, Even When You're Not" (2008), a tell-all for young adults about how to live life to its fullest while still being financially savvy.
Torabi graduated from Pennsylvania State University in 2002 with a degree in finance and international studies and went on to complete a masters program in journalism at Columbia University. After her schooling, Torabi worked as a broadcast and print journalist for several publications, including Money Magazine and Entrepreneur Magazine. While she enjoyed her work, Torabi said she realized that something was missing.
"I realized I was writing a lot about retirement and taxes … but there was really little communication with a younger audience," she said. "I felt like, for myself, there were a lot of unanswered questions; so I kind of wanted to fill that gap."
With these new goals in mind, Torabi set out to educate college students and others entering into the financial world for the first time.
She explained that her book offers a new perspective on the world of finance. "I think what differentiates my book from all the others is that … it's a fresh tone," she said. "A lot of financial books tend to be doom and gloom, and this one … tries to point out the silver linings in everything and the opportunities ... I know that as a young adult you feel really strapped — and you are strapped. You're not making a lot of money, you have student loans, you have credit card debt perhaps, you have other financial obligations, and you want to also live your life in a fun way because after all, you're young and you want to go out and do all that stuff."
Torabi added that in addition to saving, young adults need to learn how to be intelligent spenders.
"We are human; we buy things, we want things, we desire things, we desire a lifestyle," she said. "The book really tries to address how to adapt to a lifestyle that is both financially savvy but also satisfies the things that you ultimately want in your life."
With the current state of the economy, Torabi explained that the biggest concern she has seen from college students is how they will find jobs after graduation. She advocates a well-rounded education as the best way to make oneself an attractive job candidate.
"I studied finance, not because I loved it, but because I knew that coming out of school it might guarantee me a job … but I think that there is a way to strike a balance between majoring in a degree that you feel is a secure degree and also using your free time in college to explore all the [extracurricular] things that you like to do," she said. "If I had it my way, I probably would have majored in theater, but I'm not that good of an actress and I probably wouldn't be on the red carpet right now; but I did a lot of theatre when I was in college and ... I think it really helped me develop my presence on TV … I don't think it was a complete waste of my time."
According to Torabi, students should take advantage of every aspect of college in order to get the most out of their money. "College is an investment; it's an expensive four years — sometimes five years, six years if you're taking your time — so make sure that you are getting the most out of the experience [and] that when you leave college you're not just academically able to rock the world, but you're going to be able to social network, you're going to be able to be a leader, be able to be a little entrepreneurial," she said. "And remember to have fun … life is about having that balance and I think college is a great opportunity for people not just to go to class but to really do some soul searching."
As a college student, it is easy to fall into the debt trap. Bank tents at sporting events and offers of free merchandise with subscriptions can be tempting, and many colleges have been subject to scrutiny recently for allowing banks to advertise on campus. Torabi explained that students should be intelligent enough to decide for themselves whether to trust certain advertisements.
"I give college students a lot of credit. I think they're smart and I don't underestimate their ability to cut through the B.S.," she said. "I think that by now, college students know or should know that, whether it's a credit card or any kind of deal, there are strings attached and you need to read the fine print."
And in trying economic times, colleges are trying to stay in business just like any other industry. "Colleges are a business too; they need to make money and they have a lot of different companies that do sponsorships with them, banks being a part of that," she said. "My advice to college students is to … do their homework and not to base a purchasing decision on the tchotchkes that go along with the product … Ultimately, [the students] are going to be responsible for that account, they are going to be responsible for paying off their credit card, and if they are not in a position to be able to do that, then no T-shirt, no mug, no freebie is going to be able to help them in that matter."
In a world that is largely driven by money, Torabi insists that everyone can take charge of their own finances. "You've got to be smart, and I think that when it comes to managing your money," she said. "You are responsible for that; there [are] no blame games. Sure, there are scams out there, but you need to protect yourself because nobody else will do that for you."
