Written by Student Intern, Alex Higa
“Financial Foundations: Starting Small to Win Big!” was the first financial literacy workshop of the Spring 2025 semester. The session was led by Laura Davis, a certified financial planner, USC alumnus (class of 2004), and author of Earn Save Spend. It was moderated by Lori Shreve Blake, Senior Director of Career Engagement at USC, and Deborah Brittain, a senior at the Price School.
During the workshop, Laura Davis tackled some of the overwhelming topics of personal finance and the negative perceptions of the industry. Here are some of the key takeaways:
- Be intentional and take control of your money
With a financial outlook that is more uncertain and challenging than ever, learning about personal finance can be helpful in overcoming the anxiety around money. With that said, your financial planning and spending should reflect your values, goals, and purpose. Once you understand the ways money can empower you, it matters where you store it and how you follow through
- Think about your money buckets.
There are four essential places to put your money, and a fifth that you should know about. A checking account is a bank account where your day-to-day cash goes in and out of. A high yield savings account is a place to store cash for short and medium term goals while earning interest. It’s also great for keeping 3-6 months of expenses as an emergency fund. A pre-tax investment account (401k, Traditional IRA, 403b, or TSP) allows you to invest and grow your money while reducing your tax bill. For employer-sponsored accounts, contribute enough to meet the match if it’s available to you. Roth accounts (Roth IRA or Roth 401k) grow investments tax-free as long as you follow contribution and withdrawal rules. Last, taxable brokerage accounts provide unrestricted access to investing. However, this account should be used only after the aforementioned accounts are maximized because investments here are taxed at the capital gains rate.
- Stay aware of income tax.
Federal and state income taxes are often people’s largest expense. Understanding how the system works can help minimize the amount you pay. The progressive income tax brackets always incentivize you to make more money – a raise in pay will never result in a net loss. State income taxes also differ by state; California has one of the highest state income tax rates while states like Texas and Florida have no state income tax.
- Create a spending plan.
A spending plan, or budget, should be divided into two main buckets: discretionary and non-discretionary spending. Being reflective and honest about what is truly essential is important in this process.
- Take advantage of compound interest.
Your investments and savings earn interest on the original contribution as well as the interest. Essentially, interest earns interest. Although it might not feel magical in the beginning, over time, growth becomes exponential.
Watch the recording of the session on our Youtube channel. Stay tuned for more financial literacy topics!
