Jean Chatzky's Money Story
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Jean Chatzky’s Money Story The personal-finance guru learned from her mother’s example “that women can be active and extremely competent managers of money.” Now she’s sharing that lesson—and more gained over her 25 years as a business journalist and experience as a small-business owner—in a new book. By Caren Lissner ack when she was just starting out, Chatzky’s latest book—Women with White Dog Café in Philadelphia specifi- Jean Chatzky C’86 had a hard time Money: The Judgment-Free Guide to Cre- cally to talk about their finances, even B advancing in the field of business ating the Joyful, Less Stressed, Purposeful handing out slips of paper with financial journalism because her first maga- (and Yes, Rich) Life You Deserve, pub- topics on them to prompt discussion. “I zine—Working Woman (!)—wasn’t re- lished in March by Grand Central Publish- really enjoyed seeing how the data—aca- garded as a business publication. A little ing—takes aim at the enormous financial demic and other research—showed up in later in her career, her decision to focus changes that women have experienced in the answers real women gave when in- on personal finance—jumping from a recent decades and the even more mo- terviewed one-on-one, or in the HerMon- long-sought position at Forbes to a start- mentous ones that are on the way. ey Happy Hours,” she says. up called Smart Money—was also met The book examines the ways women Both the research data and her inter- with skepticism. Writing about what think and act when it comes to getting views pointed up the fact that “women more or less ordinary people did with and managing their money and provides have undergone a pretty dramatic shift their money wasn’t quite taken seri- advice on a range of common financial in the last 25 years,” Chatzky says. ously at the time. questions and for different life-stages— “What’s happened is that there’s been an Skip ahead to the present, and Chatz- from how to approach investment strat- incredible shift in the amount of per- ky is the author of 11 books (including egies and retirement planning, to deal- sonal financial responsibility that we’re some New York Times bestsellers) and ing with finances in a modern marriage, all asked to take.” innumerable magazine articles and col- to preparing one’s kids to “launch” into She cites the widespread replacement umns, a familiar and trusted media pres- financial independence, to becoming over that period of defined benefit re- ence, and a much in-demand speaker more vocal about “getting paid what tirement plans—guaranteed pensions— whose general subject matter has ex- you’re worth … plus tax.” with defined contribution plans, includ- ploded in importance and popular inter- The book’s warm and informal tone ing 401(k)s and similar funds, which est. Besides serving as financial editor will be familiar to Chatzky’s fans, but it’s place a greater burden on the individual for the Today show and “personal fi- loaded with research findings from a to ensure their financial well-being in nance ambassador” for AARP, she hosts wide variety of sources, interspersed retirement. The situation is much the a weekly podcast, HerMoney, that is the with personal stories other women have same with healthcare, where employer- centerpiece of a business called Her- shared with Chatzky and from her own funded plans have been waning. “We Money Media, of which she is cofounder career and personal life. now have a gig economy and employers and CEO. The group’s biweekly newslet- Because talking about money has tra- backing off from [benefits] in some ter, weekly podcast, website, and Face- ditionally been taboo—something Chatz- ways, and we have to pay more of our book group have a reach in the hundreds ky thinks needs to change—she convened health insurance and [research] copays of thousands each month. groups of acquaintances in places like the and premiums,” she says. 44 THE PENNSYLVANIA GAZETTE May|Jun 2019 ILLUSTRATION BY CARMEN SEGOVA May|Jun 2019 THE PENNSYLVANIA GAZETTE 45 While both women and men contend year in high school, the family moved to marketing and admired rather than dis- with these developments, the financial Wheeling, West Virginia, so he could dained pre-professional students. “Not situation for women has also changed in manage a local TV station. There wasn’t just in Wharton,” she says, “but pre-med, other ways. “We’ve got more power,” a lot of extra money, and Chatzky made pre-law—I wanted to be pre-something.” Chatzky adds. “Yes, we still have a wage note of the varying attitudes toward fi- At the same time, her journalistic ambi- gap, but if you look at educational trends nances within her family. tions were fired by beloved English depart- and the coming transfer of wealth inter- “I got an interesting mix of messages ment senior lecturer Nora Magid. “She is generationally, there’s more money in the about money. My money story was that responsible for a great deal of my life,” hands of women today than ever before.” women can be active and extremely Chatzky says. Before her death in 1991, While social attitudes and lack of in- competent managers of money. My Magid taught two decades’ worth of bud- formation have pushed women to be mother was in and out of the workforce. ding journalists to craft a tight essay with passive about money management, She was really good at [handling the a timely hook (and plenty of others to be- Chatzky stresses that women need to get money]. My father was her sounding come better writers and readers). Partici- over their fears of investing and become board. She was in charge.” pants in her legendary nonfiction writing less shy about discussing money when Chatzky was aware that money was tight seminars were also encouraged to stay in it impacts their relationships with at times, “but it wasn’t a source of strife,” touch with her and each other after gradu- spouses, children, and elderly parents. she adds. “It was more, ‘We’re going to be ation [“The Nora Network,” Mar|Apr 2013]. “Whether we’ve got $100 or $100,000, crafty and figure this out so that we can Magid helped Chatzky secure some of what I haven’t seen enough of yet is a do all the things we want to do.’ We trav- her summer internships at Advertising shift in stepping up to manage that eled across the country one summer, and Age, Rodale Press, and a newspaper in money—and manage means invest. But lunch was a package of bologna and a loaf West Virginia. “I had a resume that re- we want to,” she says. of bread, and we made sandwiches. We ate ally said journalism, journalism, jour- “By 2028, women will control 75 percent out of the back of a station wagon at a nalism,” Chatzky recalls. But during her of discretionary spending around the world playground. Did that take away from it? senior year she was struck by a malady and, by 2030, 66 percent of America’s No, it was how my parents did it.” known to many a liberal arts major: re- wealth,” Chatzky reports. Some of this is Another childhood lesson: such penny- cruitment envy. Her business-oriented because more women than men are gradu- pinching—or rather, conscious manage- peers were landing on-campus inter- ating from college, and so will likely be ment of capital resources—should be a views well before graduation. earning more, and some is simply because means to an end, not an end in itself. “I Chatzky applied to the management women tend to live longer than men and had one very frugal parent and one parent training program at the old May Depart- inherit wealth from parents and spouses. who really enjoyed spending money. My ment Stores Company. “It was in Con- Much of the beginning of the book father would splurge on things, and he necticut and paid $24,000 a year,” she talks about women’s psychology around would enjoy splurging on things,” Chatzky recalls. “I also had an offer from a maga- money, but Chatzky says men can gain says. “Sometimes in our house these days, zine called New Woman for $12,000. I insight from it too. “Just as women will when we spend too much on theater tick- went for the money. I bought a car, got a learn a lot about themselves by reading ets—which I do—we talk about this as [be- roommate, and moved to Connecticut.” this book, men will learn about the wom- ing] ‘why we work.’ We enjoy this. We’re Within three months, she knew it was en in their lives,” she says. “It’s beneficial not sabotaging our financial life in order “a terrible mistake,” she says. to us to understand our partners and to do these things. I got that from my dad.” She applied for a job at Working Woman why they act the way they do.” Chatzky also takes inspiration from her for $11,500—or $500 less than she’d passed mother’s adaptability. “She was amazing up at New Woman. Living on that income Messages about Money … at reinventing herself,” Chatzky says. “was a stretch,” she recalls. “I remember a Everybody has a “money story,” Chatzky “Years after my father got his PhD, my lot of soup at the Chinese restaurant, and writes, referring to the early experiences mother got a master’s in educational psy- it was like a dollar and it came with rice.” that shape people’s psychology around chology at Bloomington.