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Joetta Forsyth Guides Teens and Young Adults to Financial Success in New Book
Do you rule your money or does your money rule you? Joetta Forsyth, assistant professor of finance at the Graziadio School of Business and Management, suggests that being in control of personal finances at an early age ensures a better life in her latest book, Financial Wisdom Volume 1: Personal Finance and Career Skills to Guide Teens and Young Adults on Their Journey to Success and Happiness.
Horrified at the state of the US financial crisis and fueled by her son’s impending college career and financial inexperience, Forsyth delved into the root of the issue by penning a rigorous personal finance book for high-achieving teens and young adults. “They’re not good,” she says, of young people’s financial habits. “Bankruptcy among young people is the fastest growing category. They run up loans and debts and don’t understand the financial consequences of what they’re doing,” a habit Forsyth calls “borrowing to consume.”
Among the real-life financial horror stories and humorous tales, Forsyth’s book offers pre-adults tools to become successful financial planners, including how to anticipate financial risks and protect themselves from financial pressures; do detailed financial planning and forecasting in Excel; have sophisticated conversations with financial advisors; and start their career off on the right foot when they graduate from college.
“When they first start a job, they don’t realize that they have to set money aside for retirement or graduate school, and they wake up in their late thirties without a dime saved,” she explains.
More than a guidebook for the younger set, however, Financial Wisdom is a useful resource for adults, as well. Ultimately, says the author, “I’ve kept in mind that when these kids take this textbook home, their parents are going to start reading it, because it offers really high-end personal finance advice.”
Forsyth joined the faculty at Pepperdine's Graziadio School of Business and Management as assistant professor of finance in 2002. Her research interests include: how bank employee compensation is related to risky mortgage lending practices; how stock misvaluation and corporate governance influence the awarding of options to CEOs; and the relationship between corporate governance and firm value. Other areas of interest are the relationship between one-time corporate restructurings and shareholder myopia and the incentive effects of high leverage on the restructuring activities that firms undertake. She has also developed a model that explains how the advent of world trade contributed to the corporate restructuring wave of the 1980s.
Forsyth attended the University of Chicago, where she completed the course work for her bachelor's and master's degrees within four years. Her master's thesis was completed while working at Lexecon Inc., where she conducted economic research used by expert witnesses in court cases and regulatory hearings. Projects included providing economic research used in shareholder litigation, antitrust hearings and court cases, breach of contract cases, and price fixing cases among others.
In 1995 she received a Ph.D. from a joint program with the Harvard Business School and Economics Department with an emphasis in finance and industrial organization. She has been a professor at the University of Michigan Business School, and USC's Marshall School of Business.
Visit Amazon.com for more information about Financial Wisdom Volume 1: Personal Finance and Career Skills to Guide Teens and Young Adults on Their Journey to Success and Happiness.