Personal Finance “Urban Myths”

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Nov 18, 2014
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Credit Cards, Personal Finance, Investing, Savings, Current Events

Ask students which of the statements below are true (from Kiplingers)?

  1. You don’t need to start saving for retirement until you are 40.
  2. Only rich people get tax breaks.
  3. Gold is the best investment you can make.
  4. Social Security won’t be around when you retire.
  5. Buying a home is fast path to wealth.
  6. You should borrow from your 401(k) when you need money.
  7. Credit cards are bad news and should be avoided.
  8. Only rich people need a will.

As you may have guessed, the answer to all of these questions is “none of them.”  Read the Kiplinger’s article to find out more about these “myths.”  Ask students if they can come up 2-3 of their own “urban myths” too.

Update:

Time noted perhaps an even more disturbing myth here (which you might want to dispel):

A new study from Junior Achievement USA and PwC US conducted by Ypulse finds that 24% of millennials think their student loans will be forgiven.  “It’s a scary statistic,” Junior Achievement president Jack Kosakowski tells CNBC. The survey doesn’t explore why roughly a quarter of young people have such an optimistic — and for the majority, unrealistic — expectation.

About the Author

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

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