By Karyn Cook,
Special to the AFRO
As April is National Financial Literacy Month, this week’s edition includes tips from finance experts in all walks of life, looking to help people improve finances and build generational wealth. One expert who spoke with the AFRO was Michelle Singletary, a personal finance advisor and journalist.
A graduate of the University of Maryland at College Park and Johns Hopkins University, Singletary has been honored by the National Association of Black Journalists with the Legacy Award in 2023.
Q: What are your top three money tips for Black children, young adults and people over 35.
A: One, have a budget. It’s so important that you understand what’s coming in and going out. A lot of people are afraid of a budget, they feel like it limits them–but it allows you to do things important to you.
Two, invest for your older self. It’s hard to do for younger people since you’re living in the present and it seems far away, but the best time to do it is when you’re young and have time on your side.
Three, limit the amount of debt you take on for everything–make sure a lot of your money doesn’t serve debt because that’s less money to invest.
Q: What do you consider the top thing to do in preparation for retirement?
A: The most important thing when you’re younger is to save as much as you can. You have decades to get there. Comb your budget and see what is extra. If you have a workplace retirement plan, put it in there. If you don’t, contact your financial institution and tell them you want to save for retirement and they can put towards mutual funds. Low-cost index mutual funds are a way to invest as a young adult.
Q: When it comes to technology, what are things you must pay attention to?
A: You just need to be careful about technology. I do my budget on pen and paper, you don’t need fancy apps. Make sure when you use technology, that you slow down the payment process, because the quicker it is the more likely you’ll overspend.
Q: How did you get into finance?
A: I started at the Baltimore Evening Sun, the business editor there suggested I come work with the business section. She wanted to expand to more young people, women and people of color. It was a turning point for my career because it was an area that I was new to. Business, in the sense of personal finance, wasn’t as popular as it was today. It really opened a door in an area that was great for my career.
Q: Who are your mentors or inspirations for your work in the finance industry?
A: First of all my grandmother Big Mama, was my mentor. She was great with her money– she didn’t make a lot of money, but she handled it well.
I like this investing group called ‘Bogleheads.’ They follow the investment advice of John Bogle, founder of Vanguard, a group of people who believe in building wealth through low cost index funds. I just love that group because it’s just regular people putting away money over a lifetime to build wealth.
The responses above have been edited for length and clarity.
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