5 Misconceptions Teens Have About Money

The first step to achieving anything is having an accurate understanding. If you believe that the key to getting in great shape is to stand in a closet for six hours each day, you’ll never make any progress. Faulty beliefs limit success, because you’re not even playing by the correct rules. Misconceptions regarding money are common and can last a lifetime.

Avoid believing these fallacies:

  1. THERE WILL BE TIME TO SAVE OR BE FINANCIALLY RESPONSIBLE LATER.
    • Teens have some big financial advantages. They typically don’t have a car payment, mortgage, children, or other major financial  responsibilities. The time to start saving and being responsible is right now. The benefits can’t be over-exaggerated.

  2. A BIG SALARY IS NECESSARY TO CREATE WEALTH.
    • A decent job is sufficient to create a high net worth. The amount of money you make isn’t nearly as important as the amount you keep.
    • Save and invest each month and you can easily be worth more at retirement than someone with a huge salary.

  3. MONEY AND HAPPINESS ARE STRONGLY CORRELATED.
    • Beyond a salary of around $70k, you won’t be happier by making more money.
    • If you can reliably pay your bills, have a little extra to pursue a couple of hobbies, and take a vacation or two each year, you’re earning enough money to be as happy as anyone else.

  4. MONEY WILL IMPROVE YOUR SOCIAL LIFE AND MAKE YOU MORE ATTRACTIVE TO THE OPPOSITE SEX.
    • You can spend more time socializing if you have enough money to afford it. Your money doesn’t do others much good.
    • Most people don’t care about your income or net worth. It’s advisable to avoid those that do.

  5. YOU CAN RELY ON LUCK OR ON SOMEONE TO RESCUE YOU.
    • You might be a great person with a wonderful family, but you’ll eventually have to fend for yourself. Relying on the kindness of friends or strangers – or expecting to win the lottery – isn’t an effective strategy.

You can create a life of your own design when you start your financial future with accurate beliefs about money and wealth.

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