What does school teach you about money? Answer: Nothing. With financial stress at an all-time high and financial literacy at an all-time low, something must give. We need supplemental personal finance education.
1. Credit Cards Aren't Evil
Credit cards often get a bad reputation because many people abuse them. Using credit can be quite helpful. You can borrow the money for a large purchase and pay off the balance in full at the end of the month. By doing this, you will pay 0% interest.
2. Your Credit Score Can Hurt You
3. Investing Isn't Just for Rich People
With the rise of financial smartphone apps, anyone can invest. Start saving early, and you will take advantage of compound interest. Make it your business to become proficient when you manage anything finance-related.
4. You Need an Emergency Savings Account
Right when you have your personal finances in order, something terrible happens. When it rains, it pours. The surprise tax, engine repair, or medical emergency can potentially occur in any of our lives.
The education system will encourage you to go to one of your dream schools and finance it with student loans. School doesn’t teach you how to pay off a student loan.
6. Personal Finance Mistakes Happen
Don’t ignore your mistakes. They will come back to haunt you. If you have a $20 balance on your electricity bill and don’t pay it, you will be sent to collections, and your credit will suffer. You may be denied housing based on your credit history.