Tag: personal finance

Some Myths About Personal Finance

Since everyone is involved in personal finance, it is inevitable that the world is full of myths and mistruths about personal finance. So many people are looking for an easy angle and a way to avoid the responsibility of dealing with their finances. Let’s take a look at some common myths and see how true they really are (hint – not very true at all).

1. I’m not 18 yet, so they can’t make me be responsible for my debts

Wrong. Very wrong, in fact. You can’t sign a legal contract before you are 18, so you can’t sign up for a credit card of your own or get a loan. That doesn’t mean that you can run up your bill if you do have a credit card, though. In order for a teen to get a card they need an adult to co-sign. That adult will be responsible for the debt which is racked up by the teen. For most people it would be worse to hang your parents with a debt than it would be to run one up for yourself.

myths

2. It is safer if I don’t sign my credit card

Also wrong. Someone must have thought that not signing your card would protect you from identity theft because the bad guys who got their hands on your card wouldn’t know what your signature looked like. Unfortunately, whoever came up with that theory wasn’t very bright. They won’t know what your signature looks like, but they can just sign it themselves instead. That way, when they go on a spending spree their signature on the bill will perfectly match the one on the card and they will have a whole bunch of new stuff. You will only be left with the bill for all of it.

3. Easy money can be made helping foreigners with their banking problems

Really, really wrong. You may have seen the offer and it probably sounded pretty good. Someone in another country (often Nigeria) is having trouble getting a whole bunch of money out of the country because their government won’t let them remove it. If you will help them by putting the money into your bank account and then letting them transfer it to another account then they will leave behind a big sum of money as a reward for your troubles. So what’s the problem? Well, they want you to give them all of your banking information so that they can put the money in your account and take it out afterwards. The thing is, they just use the information you give them to empty out your account of all of your money and then they disappear so you can’t track them down.

Talking To Your Child About Money in a Troubled Economy

I don’t have children yet. There, I said it — I don’t have children yet, but I’m about to talk to you about children. I am a proud auntie and find that my nieces and nephews benefit from my advice, so I hope that you won’t write me off either.

One of the biggest things on everyone’s mind right now is definitely the economy, and that’s not necessarily a bad thing. I think that art of the reason why we’re in such a mess now is that we never really took time to educate ourselves on finance — we let other people have that information. We decided that other people were going to be able to handle our money better than we could.

Now that dream is gone, and we’re left making sure that we can pick up the pieces and start over. So, where do you really focus your time? You have to make sure that you’re looking into things from the perspective of teaching your children the ins and outs of personal finance.


A troubled economy can cloud the conversation. You don’t want your children to grow up fearing money, or thinking it it’s something that they will never, ever have in their lives. That’s just not the type of lesson that you want to bring to your children at all. It would be a lot smarter to tell them that money is neutral. It’s what we do with money that makes the difference. If we invest in our education, is that a bad thing? No! You want to get the most that you can out of the process of going to school so that you can get a good job.

What about if you are speaking to younger children? Getting them to understand that money has a purpose may be a bit different, but it’s still something that you need to do. When you’re going to the grocery store, let them help you find what costs least. That gets them using the lesson they learned in school to really give you the school on things from a financial standpoint. You can even have them start calculating how much things are separately — 2 pack, 4 pack, 6 pack, etc.

The more you make money sound like an everyday thing, the more it will actually be an everyday thing in the eyes of your children. Keeping the lines of communication open will make it a lot easier to actually handle your finances — there’s no waiting, no idea that you’re not going to be able to take care of the things that matter to you. It’s just a matter of looking at things from the right perspective and pushing forward. Don’t overload your child with information and they will certainly be just fine!

Does Personal Finance Ever Get Easier

If you’re just getting into the world of personal finance, there’s probably one emotion that you’re feeling more than ever; confusion! I know the feeling, because I was there myself. If you find that you’re getting mixed up with all of the different information out there, you are in good company. A lot of people hear about what’s going on in the world of finance, and then they just figure that they might as well deal with cash only.

That’s really an extreme view of things, isn’t it? You see, credit is really neither good or bad. It’s what you make of it. Some people use credit in order to buy a home. There are a lot of benefits to getting a home, but if you force yourself to try a buy a home only in cash, you could end up being very frustrated in the long run.

You have to step back and come up with a plan for the rest of your life. I like to call it a financial blueprint so you get a clear mental picture of what you need to do.


Does a financial blueprint need to be difficult? Not at all. A good plan includes what you want to do now, what you want to do later, and what you want to do in the future.

You need to get into the mindset of handling your life from a financially perspective. Some people struggle with this because it means that they have to face issues that are difficult — like making more money when other people around them aren’t making as much. They might feel pressured to pick up tabs for the rest of the group, something that they might not want to do all of the time.

Life is what you want it to be, though. If you want something, you’re going to have to save for it.

On the subject of personal finance getting easier, I think it does IF you are willing to read as much as possible on the subject. Yes, at first it’s going to sound strange, foreign, and even confusing. But it doesn’t stay that way. It gets better over time. You don’t have to really deal with confusion forever if you really don’t want to, and most people that are dealing with it will eventually grow out of it.

What you need to realize is that your finances are under your control. No one is forcing you to push into more debt. No one is forcing you to get more credit cards. You have to sign on the dotted line and give consent to those things. Identity theft is real, but that’s a separate issue. I am talking only about the credit that we take out of our own accord.

Maybe this is something that you don’t want to hear today — I certainly didn’t. But if a little tough love can keep you from making the mistakes I made, I will gladly be tough on you!

There’s a lot more to life than money, but we can’t ignore the power of money in our society. The more that you can protect your financial future, the more options that you truly have! Good luck!