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
What you don’t know can hurt you. A great piece of financial advice is to work toward a good credit score. A low credit score can cause you to pay more interest on a mortgage or be denied renting an apartment.
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.
5. Student Loans Usually Suck
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
When you swipe your credit card or sign a contract, you are making a promise. Remember when you were younger, and your friends would say, don’t break this pinky promise? The same applies at any age.
7. You Don't Have to Work a 9-5 to Make Good Money
Go to school and get a good job. I have heard this phrase ad-nauseam throughout my life. Unless you are incredibly passionate about your job, you will most likely come to resent someone else telling you to eat lunch precisely at noon.
8. Assets Lead to Wealth
Accumulating assets is the key to winning the personal finance game. Assets pay you each month, while liabilities take money from you. Once you have assets paying your bills, you can choose not to be tied to a traditional 9-5 job.
9. Tracking Your Finances is Important If you do not have accurate knowledge of your finances, how will you improve them? Tracking your expenses is a top priority to have success with money. Use a notepad, your phone’s note app, or an automated smartphone app. Find a way that works for you and stick to it.
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