This article appeared in the March 25, 2005 Jewish Advocate.

Everything you wanted to know about bosting your spending power:

Author Suze Orman targets 20s and 30s with new book

By Susie Davidson

Advocate Correspondent

In The Money Book for the Young, Fabulous & Broke, financial expert Suze Orman reaches out to an audience previously underserved in her field: people in their 20s and 30s. Orman believes that this generation, often perceived as uninterested in financial advice, needs it now, more than ever.

The March 3 release by Riverhead Books accompanies the PBS special “Suze Orman for the Young, Fabulous & Broke,” which was produced, written and hosted by Orman. A national publicity tour included a stop this Wednesday at Borders Books & Music in downtown Boston.

“Oh no, she’s here!” she announced, bustling up to the podium. “If I need to be introduced, get the heck out of here.” Right off, the room of “Y, F ‘n B’s,” as she calls them, were captivated. She continued in her inimitable style, recalling her background as a waitress at the Buttercup Bakery in Berkeley at age 30, making $400 a week. “I went to California in a Ford Econoline van my brother lent me the money for. I lived in it for 3 months.” If she could make it, so could they, she told them. “I never thought I’d be anything more than a waitress.”

Somehow, you could see her leaning over a counter though, dishing out commentary and advice along with the edibles. She’s a natural. But it wasn’t easy when she arrived on the lecture circuit a decade ago (in fact, at Boston bookstores, she said). “Who would want to hear about money from a woman, especially in 1995?”

Much success later, a friend asked her about issues her 21-year-old daughter faced, which inspired the new angle. “My previous books were for over-40s,” she told the Borders crowd. “This one’s for you.” Again, no one was spared. “I roomed in college with Judith Jacklin, the future wife of John Belushi. Yes, I lived with John Belushi for four years. So I don’t want to hear about your wild and crazy life. If I made it, so can you.”

Orman, 54, grew up in Chicago’s South Side. She has two older brothers; her mother was a legal secretary. Her father, who ran a struggling deli business, died in 1980. She dedicated her book “The Courage to be Rich," she told the Advocate, to her Bat Mitzvah haftorah's message of having the courage and faith to be whatever one could be. A South Florida resident who is single (married to her audience, she explains), she’s explored Israel, India and Nepal for spiritual enrichment.

Orman’s appeal lies in distilling her extensive financial knowledge clearly, directly and humorously. She emotionally bonds with her readers and viewers as well, listening, and firing off revealing queries such as “How many pairs of shoes do you own?” and “Do you buy extra items just because they’re on sale?” Her books, The 9 Steps to Financial Freedom; The Courage to Be Rich; The Road to Wealth; and The Laws of Money, The Lessons of Life were consecutive New York Times bestsellers. She also had national bestsellers with You’ve Earned It, Don’t Lose It and Suze Orman’s Financial Guidebook. She hosts a national award-winning Saturday evening CNBC-TV show and award-winning shows on PBS and QVC, and wrote, produced and hosted four PBS fundraising specials, one an Emmy-winner. A monthly contributor to O: The Oprah Magazine and Costco Magazine, and also writes “Money Matters,” she pens a biweekly column on Yahoo!.

Orman’s past positions include Director of the Suze Orman Financial Group, Vice President of Investments for Prudential Bache Securities and Account Executive at Merrill Lynch. Among her numerous business and book awards and achievements is a spread in Worth magazine’s 100th issue honoring those “who have revolutionized the way American thinks about money.”

“This is definitely not your parents’ money book,” she says. “[You] are facing some of the most challenging financial conditions in decades, including meager entry-level salaries, skyrocketing rents and home prices and crushing credit card debt.” (Indeed, with enormous student loan debt and an unusually weak job market, they’re dubbed "Generation Debt" and "Generation Broke" by the media.) “The goals of their parents' generation - buy a house, support a family, send kids to college, retire in style - seem absurdly, depressingly out of reach,” says Orman.

Yet, it’s a critical time to set a pace for the future. The young have the most to gain, and the most time to make the right choices. Orman knows this and goes where other finance books haven’t tread, daring youth to cut the credit cards, lay off the lattes. “I know they have what it takes to deal with the cards they’ve been dealt.”

The book is youthfully oriented in both design and content. Readers are given numbers they can plug in at Orman’s Web site to obtain detailed, personalized advice. The book is set up in 10 prioritized sections: FICO score, career moves, credit card debt, student loans, savings, retirement, investing, buying a car, buying a home, and love and money are all covered.

Orman doesn’t lecture; she sticks to issues relevant to young readers. Each chapter begins with a crash course on its subject and the “Low Down,” an overview of basic information for smart moves. A “Quick Playback” at the end of each section replays the most important Dos and Don’ts.

Interest rate on your credit card shot up? They noticed a problem you had on another card, and Orman tells you how to fix it. The all-important FICO score? Learn about it. Career or financial goals? Career, hands down. Should you close credit card accounts you don’t use? No. What about student loans? Don’t default – use other options that are out there. Buy or lease a car? Buy. Stocks, bonds, or mutual funds for the Y, F ‘n B’s? Stock mutual funds. Why should bankruptcy be avoided? Exactly how should you pay down credit card debt? How to save when not even a dollar remains each month? 401(k)s and Roths? And why even save for retirement when it’s so far off? House buying, mortgage choosing, staying in a relationship with a person whom you love personally, but hate financially – these and other issues are fully dissected.

“Your car insurance can go up if you borrow more than 50 percent of a store credit card limit,” she told the Borders audience bluntly. But she sympathized: “You’re the first generation that is not expected to make more than your parents.” So fully engaging was she that only a few questions could be fit in before the long, long booksigning line and IPod Shuffle raffles began. But those who posited were in for a laugh: “Get your booty up here,” she told the first, who asked about IRAs (Roth over traditional, she decreed). “You watch me rock a house,” she asided to the crowd.

“Finally, there’s a nonpatronizing book,” said a questioner who described herself as 28 with voluminous student loan debt. “Even with IRA and double 401K contributions by my company, I don’t think I can ever buy a house.”

“Stretch out that student loan debt at 2.5, 3 percent as long as you can, and pay off the other debt,” answered Orman. “It’s the cheapest money you’ll ever find.” You’ll get the house, she said, but avoid PMI at all costs.

Here’s a tip for starters: the book, which sells for $24.95, is only $16.47 on Orman’s Web site, www.suzeorman.com.