12 Things School Didn’t Teach About Money

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School teaches kids a lot about many things, but sadly money and finances isn’t one of them. Everyone needs to know some financial basics like how to make and use a budget, how credit cards work, and how to improve your credit score. Here are 12 things that school didn’t teach you about money that everyone should know. 

Having a Budget is a Necessity

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You need to have a budget to get the best idea of your finances, how much is going out each month, and how to improve them. There are many free apps available to help you start budgeting, and your banking institution may also have some great tools you can use. 

Cars and Houses are Not Assets

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Many people think of cars and houses as assets because you can use them as collateral if you need to for a loan. Cars aren’t assets because you aren’t going to get more than you put into them back out of them. Homes can appreciate in value, but they aren’t assets unless they are rental properties that provide income. 

Investing Isn’t Just for the Rich

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Investing wasn’t always easily accessible to everyone, but thanks to technology, it is now. Multiple apps teach you all about investing in stocks, and you only need a minimal amount to start. You can also prepare for the long term by investing in a 401k or IRA. 

Emergency Funds are a Necessity

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Everyone should have an emergency fund because emergency expenses can and will happen, usually at the most inconvenient time. Car repair, an unexpected medical bill, or home repair expense will happen to you at some point, and you need the accessible funds to pay for them. 

A credit card should not be your only source of emergency money. Ideally, you should have 3-6 months of your expenses saved in your emergency account. 

Your Credit Score Can Hurt You

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You need to know your credit score and do your best to improve it. A bad credit score can keep you from getting a lease for a home or apartment, prevent you from getting the best interest rate on a credit card or loan, and even take you out of the running for a job. 

9-to-5 Jobs Aren’t the Only Way

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In school, everyone is always told that a regular 9-to-5 job is the only way to be successful and have a career. This is not true! Even if you have a 9-to-5 job, there are plenty of side hustles and small businesses you can start for multiple income streams. 

Financial Mistakes Will Happen

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You will make financial mistakes, and unfortunately, some of them can be costly and have long-term effects. Don’t let this discourage you, and don’t ignore them. Fix them. Learn from those mistakes, move past them, and work towards a healthier financial future. 

You Can Earn Cash Back on Just About Everything

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You can sign up for a cash-back rewards credit card that gives you a percentage of cash back on qualifying purchases. However, that’s not the only way to earn cash back. Rewards programs like Fetch, Ibotta, and Rakuten also let you earn cash back on your purchases. 

Buy Quality, Not Quantity

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Have you ever heard the saying “buy it once cry it once”? That means you may pay more for a quality item upfront, but you won’t have to buy it again. Often when you buy the lesser quality item you end up buying it more than once. 

Multiple Income Streams are the Way

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Having multiple streams of income means that if something happens to your 9-to-5 or W2 job, you still have money coming in to cover your bills and expenses. Did you know that most millionaires have more than five streams of income? Passive income streams are a great option because you can make money while you sleep or work your “regular” job. 

Credit Cards Aren’t Inherently Bad

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Credit cards aren’t a bad thing. In fact, they can be a great thing if you use them responsibly. You can earn rewards and cash back for using them, and they can help to boost your credit score. Learn about credit cards before you sign up for one, and pick the best one for your needs. 

Saving Money Isn’t Always Good

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During times of inflation like these, saving money simply for the sake of saving money like your parents told you to is not a good idea. Your money becomes less valuable by the day. Instead, use your money to make more money or buy things that will appreciate in value over time. 

12 Things To Never Buy with a Credit Card

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Having a credit card is a great way to build up your credit, and you can rack up some pretty nice rewards too, if you play your cards right, pun intended. However, there are some things that you should never buy with your credit card. 

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