In the complicated world of today's global markets, financial literacy for young people is becoming more important than ever. And for one of the country's former top banking regulators, well, she's decided to write a book all about it. Let's bring in now Sheila Bair, on set with me. She was of course chair at the FDIC and author of the new book, How not to lose a million dollars. Sheila, it's great to see you, especially on set. When you were writing this, who you sort of imagined as the audience? Who was that? Who's the reader?

Yeah. Right. Well, I think Amazon has the age group at 12 to 17. I think, you know, it's uh, it's really more for the upper grades. Kids who are on the cusp of entering adulthood or at least becoming more financially independent, whether it's entering the workforce after high school or after college. Even most students when they go into college, they are responsible for more of their financial management than they were when they were living at home. So that's that's really who I envisioned it for.

So what are some lessons learned?

Yeah. Well, I think it's basically the first thing to build wealth is is hold on to your money. Don't lose it stupidly, right? And and there's a lot

What are some what are some examples of stupidly?

Well, okay, so so the thing or maybe stupid is too harsh a word because kids are, you know, constantly barraged with marketing. But okay, unnecessary bank fees, carrying a credit card balance. Those are two ones that young people frequently they don't they overuse their credit card, they carry an interest, they carry balance, pay very high interest. They overdraft their account in charge, they incur overdraft fees. So those just getting off on the right foot, making sure you pay off your credit card every month, you don't borrow on it more than you can pay back. and get a get a get a no cost, no fee bank account and there are plenty out there. So, but then you go from there and then we I talk about debt and I my first rule is avoid debt, right? Debt's a burden on your financial future. There are specific instances where it might make you better off financially. Credit cards, if you pay it off every month, that is a good debt because you can build a credit score and it's zero interest if you're paying it off every month. a college loan may be good if you're sure that a college degree is right for you, that you're going to finish it. You don't end up dropping out and have debt and no degree. Uh, and and then you're sensible about how much you borrow and do your research about how much you're going to earn with that degree after after you graduate. Um, home ownership maybe, or that's down the road for a lot of them, but you know, you need a place to live, but home prices over time build wealth. Make sure you're going to be there at least five years. You want to be able to ride out the dip and make sure you have enough appreciation to cover closing costs and all of that kind of thing. Um, so I go through specific examples, and car debt too. I discourage young people because cars are so expensive, the payments are high, the insurance is high, especially again for young men. But, you know, if if it's necessary to go to a good school or get a good paying job, it might make sense to do it. But you know, don't go crazy. Buy a used car, a good used car, try to get a three-year loan. And then I talk about other things too, insurance, you know, the classic mistakes, buying too much or buying too little, taxes, painful chapter. I mean, our our, you know, their income tax will be next to nothing when they enter the workforce, but the the um the payroll taxes are spectacularly regressive. So they're over 15% off the top if they're a gig worker, and then layer on the state income taxes, which frequently are regressive too. So that you're looking at 20% off the top, maybe you're making 50,000 a year if if if you're lucky, especially if you only have a high school degree. So I will forewarn them about all that and but pay the taxes because you got to pay penalty penalties and fees if you don't. Then the last chapter I talk about, once we've walked through all the ways you can not lose money, here's a way you can save and invest it. And I talk about, you know, index uh index investing for beginners. I think it really is the best way. When they get older, maybe they can start picking individual stocks. But, you know, boy, just a well-diversified stock index fund starting out for retirement savings is really no better place.