2037: Rates Are Going Up. Now What, Farnoosh?

Farnoosh Torabi (0:00)

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SPEAKER_2 (0:35)

You're listening to So Money with award-winning money guru Farnoosh Torabi.

Looking for ways to save on gas or double your double coupons? Sorry, you're in the wrong place.

Farnoosh Torabi (1:01)

Welcome to So Money, everybody. I'm Farnoosh Torabi. If you're watching on YouTube, you're seeing me with wet hair, and I don't care. No, it's actually like kind of a fun look, right? It's just like life's a mess. You know, it's Friday. We've made it to the end of the week. I finally showered. If you're not joining us on YouTube, come, come over to YouTube. Right now, I'm watching more YouTube than my 12-year-old son, which says a lot because I'm doing research. I'm trying to figure out how to present So Money in the New Year, how to shoot it. We will be in studio for our weekly show, our once weekly show starting in January. Yeah, big transition's coming. I'm going to talk a bit more about that, but first a little peek into what's ahead. We've got a lot to get into today. The Federal Reserve did something this week that it hasn't done in more than three years. It raised interest rates. That's right, increased. So we're going to talk about why the Fed did this, what it will mean for credit, credit cards, our savings accounts, mortgages, and even the job market. And then in the mailbag, I've got two questions that feel especially timely. First up, with interest rates going up, how should we prioritize paying off debt versus saving and investing? Do you stop investing and throw everything at the credit cards? Do you build up six months of savings first? What if you have a 401k and your company offers you a match? We're going to create an order of operations. And then my neighbor, Daniella, wants to know, how can I start teaching my kids, my teenagers specifically about investing? And I love this question. When I got the text this week, I was like, she's really going after my heart here. And there are more ways to do this now than ever. And we're going to talk about everything from the new Trump accounts and one of my personal favorites, the custodial Roth IRA, which we're going to set up for our kids this year. If you're a business owner or an entrepreneur and your kid legit works in your business, this is something you want to pay attention to. There may be an incredible opportunity here to help your teen or your child begin investing for retirement before they've even graduated from high school.

But first, I want to talk about this show, So Money, in case you were wondering what you were listening to. If you've been following me the last couple of weeks, especially this week, you know we've got some news. The next chapter of So Money is here. Earlier this week, I announced that So Money is evolving, one of a metamorphosis. And after more than 12 years, believe it or not, 12, started this show in 2015, well, so what, 11 and three quarters. We are relaunching the show in the new year with a much more specific focus, and that is Money in Midlife. And before I say anything else, I just want to say thank you, really. The response this week, since, well, last week, really, has been overwhelming in the best possible way. So many of you have written to me, emailed me, commented, DMs, shared the announcement and said some version of, yes, exclamation point. Finally, Farnoosh, this is exactly what I need. Or you say, I feel like you're reading my mind. I love when that happens. I can't tell you how meaningful this has been, because if you had asked me a few months ago or a year ago, what the next chapter of So Money was going to look and feel like, I would not have said, oh, yeah, we're going to totally relaunch it as the definitive show about money in midlife. Now, a few months ago, I was curled up in a ball and I was asking myself whether I should just end it, end So Money, burn it to the ground.