WASHINGTON – The secret to managing your finances isn't "rocket science," Treasury Secretary Henry Paulson told a group of high school seniors Thursday.
"It's very simple," said the former Wall Street titan whose net worth is estimated at over $700 million. "Make sure you don't spend more than you earn."
Paulson said it was good to develop the habit of saving at an early age and to learn how financial markets operate.
He told seniors from Virginia's McLean High School that they should be careful when they go off to college that they don't get into trouble by running up high debts on their credit cards.
"That credit history can come back to haunt you," he told the group, which had been brought to the Treasury Department to participate in the fourth annual "Get Smart About Credit Day" sponsored by the American Bankers Association.
Asked for advice about picking the right college and what students should study to get a good job after graduation, Paulson told them to relax.
"There is too much anxiety in this country about getting into college," he said. "The great thing ... is we have many good colleges."
And as for what to study, Paulson, who rose to the top of investment giant Goldman Sachs (GS), said he majored in English literature because he loved to read.
"I didn't major in economics or finance," he said. "The advice I would give you is enjoy college. Enjoy learning."