What Today's Graduates Need to Know About Wealth

Today's graduates have no idea what they're getting into.

It's high-school and college graduation season. Some graduates are hopeful about the future, while others are pessimistic... But almost all of them are clueless when it comes to finances.

One survey from the National Association of College Stores found that 72% of new college graduates don't feel even somewhat competent about investing.

Many also said they don't feel prepared to make informed decisions for standard financial activities like how to file taxes, pay down debt, or save for retirement.

I've said it many times: The best way to empower yourself and take control of your own life is to educate yourself. If high school or college won't prepare you for the real world, you need to find something that will.

And learning doesn't stop after you've left school. Lifelong learning is crucial for mental acuity. If you want to keep your brain sharp, ward off dementia, and live a long and successful life, never stop learning.

I can help you with this...

Over the years, I've compiled my ultimate reading list. It covers the best books in a range of financial topics. Today, I want to share the top three books from each category. They're a great way to start building – or refreshing – your financial literacy today.

Beginner Books for Investors and Moneymakers

• Liar's Poker: Rising Through the Wreckage on Wall Street, Michael Lewis
• Think and Grow Rich!, Napoleon Hill
• The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns, John Bogle

Philosophy of Life, Money, and Investing

• Atlas Shrugged, Ayn Rand
• The Drunkard's Walk: How Randomness Rules Our Lives, Leonard Mlodinow
• Against the Gods: The Remarkable Story of Risk, Peter Bernstein

Big Swingers of Wall Street

• Beating the Street, Peter Lynch
• Market Wizards: Interviews With Top Traders, Jack Schwager
• Adventure Capitalist: The Ultimate Road Trip, Jim Rogers

Value Investing

• The Little Book of Value Investing, Christopher Browne
• The Dhandho Investor: The Low-Risk Method to High Returns, Mohnish Pabrai
• Value Investing Made Easy: Benjamin Graham's Classic Investment Strategy Explained for Everyone, Janet Lowe

Trading

• Trader Vic: Methods of a Wall Street Master, Victor Sperandeo
• How to Trade in Stocks, Jesse Livermore
• The New Money Masters, John Train

Economics

• Economics in One Lesson, Henry Hazlitt
• Naked Economics: Undressing the Dismal Science, Charles Wheelan
• Warren Buffett's Annual Letters 

History of 'The Street'

• F Wall Street: Joe Ponzio's No-Nonsense Approach to Value Investing For the Rest of Us, Joe Ponzio
• Wall Street Meat: My Narrow Escape from the Stock Market Grinder, Andy Kessler
• Hedgehogging, Barton Biggs 

We encourage you to share today's issue with folks in your life... whether they're a recent grad, the parent or grandparent of a grad, or a lifelong student.

Now, let's get into this week's Q&A... As always, keep sending your comments, questions, and topic suggestions to feedback@healthandwealthbulletin.com. My team and I read every e-mail.

The Problem With Pet Insurance

Q: Doc, you always talk about insurance tips for people. What about pet insurance? Every time I take my dogs to the vet, they always ask about/recommend pet insurance. – E.K.

A: Pets are expensive... According to the ASPCA, the average yearly routine medical cost – including preventive medication – is $300 for a cat and $410 for a dog.

And if you have an emergency, it could cost $1,000 just to get a diagnosis, while hospitalization or emergency surgery can run in the multiple thousands of dollars. Many pet owners can't afford that... According to a 2024 survey from Forbes Advisor, more than 25% of Americans have less than $1,000 in a savings account.

Pet insurance companies want to capitalize on that. The North American Pet Health Insurance Association reported that gross premiums rose a whopping 200% from 2019 ($1.56 billion) to 2024 ($4.7 billion).

But here's the problem: The average pet insurance plan, covering accidents and illness, will cost you around $276 for a cat and $552 for a dog each year... And this varies widely depending on the age and breed of your pet and the insurance company's policies. Coverage also comes with a lot of caveats...

• Plan deductibles can be an additional $250 to $750.
• Most plans don't cover preexisting conditions.
• Many plans also exclude coverage for congenital conditions, cancer treatments, or other conditions requiring long-term treatment.
• You (usually) pay for treatment up front, then seek reimbursement.

Here's a better plan for your money...

Take the money you would have put toward a monthly insurance premium and set up a savings account designated for emergency pet care. That way, if you need it, the money's there... And if you don't need it, you won't lose it. You can even grow your emergency fund by choosing a savings account with no fees, no minimum requirement, and a reasonable annual percentage yield ("APY").

A high-yield savings account is often your best bet for a higher interest rate. Right now, banks are offering up to 4.4% APY for high-yield savings accounts. Many banks don't even require a minimum balance.

If you're thinking about adopting a new pet, start this savings fund right away. Aside from upfront costs (like spaying/neutering, vaccines, and essential supplies), the cost of pet ownership typically rises as pets age due to increased medical costs. Opening a high-yield savings account is a simple way to manage your pet's care by creating your own insurance instead of padding some large corporation's pockets

What We're Reading...

• Did you miss it? The market's historic winning streak is finally over.
• Something different: Real ID is finally here.

Here's to our health, wealth, and a great retirement,

Dr. David Eifrig and the Health & Wealth Bulletin Research Team
May 9, 2025