NGPF Podcast: Tim Talks To Eric Tyson, Author of Personal Finance For Dummies
Thanks to Eric Tyson for recently joining me on the NGPF podcast. Eric has brought personal finance advice to millions through his work as a financial advisor, syndicated columnist and author of Personal Finance for Dummies (and other titles in the Dummies series).
Eric provides insights to the following questions during our conversation:
- How did his earlier experience as a management consultant to financial service firms inform his personal finance writing?
- How does he think personal finance should be taught in high school?
- How much weight should be given to advice provided by “financial gurus?”
- How should people think about “wealth” beyond just the size of one’s bank account?
- 0:00~0:30 – Intro
- 0:30~1:38 – Prior Experience with Personal Finance
- 1:38~3:48 – Anecdotes to share
- 3:48~6:43 – His approach as a financial advisor; why per-hour is better model for clients
- 6:43~8:50 – What lead you to write Personal Finance for Dummies?
- 8:50~11:37 – What lessons did you learn about personal finance from your parents?
- 11:37~12:26 – Details about Personal Finance for Dummies
- 12:26~13:57 – How does the current edition differ from the older editions (currently in 8th edition)?
- 13:57~15:08 – Why are you such a fan of Vanguard?
- 15:08~17:28 – Should we put our faith in financial “gurus” always appearing on TV?
- 17:28~21:28 – Favorite examples of really bad advice
- 21:28~23:42 – Your philosophy on educating others about personal finance
- 23:42~24:56 – More on financial gurus
- 24:56~28:24 – How do you put yourself in a beginner’s shoes given your financial expertise?
- 28:24~28:40 – A word from our sponsor
- 28:40~30:47 – How should personal finance be taught in high schools?
- 30:47~32:37 – What are the most important topics that students should learn
- 32:37~34:43 – How should people define wealth?
- 34:43~36:30 – What concepts do people have the most difficulty learning?
- 36:30~40:18 – Examples of good habits
- 40:18~41:37 – Index funds vs individual stocks
- 41:37~42:30 – Credit cards vs debit cards
- 42:30~43:32 – Good debt vs bad debt
- 43:32~45:10 – How much student debt is too much?
- 45:10~47:48 Are personal finance problems caused more by a knowledge gap or our inability to execute on a strategy?
- 47:48~49:30 – Personal habits Eric wants to change
- 49:30~50:56 – Recommended reading
- “I would always encourage people to look at any advice that is out there. What is there agenda? Do they have a bias?”
- “You got to do your homework. Just because someone is dressed well and is articulate and they have a fancy award framed on their wall doesn’t mean you can trust them”
- “Students have a natural curiosity to learn about the real world and what their parents are dealing with”
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.