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5 Personal Finance Basics You Don’t Learn in School

20 February 2020 No Comment

How and when did you learn about finances? Most likely, you didn’t learn much about being an adult in high school. A study found that only about 24 percent of Millenials have basic financial literacy.

Looking to learn about some personal finance basics they don’t teach in school? Check out these basic ideas that aren’t part of the school curriculum.

  1. How to Budget

Budgeting is one of the most important skills you can learn to help you manage money as an adult.  You need to learn how to manage bills and know the difference between your needs and wants to avoid financial hardship.

People need to know how much they are bringing in a month versus how much they spend each month. Everyone should learn how to make a budget plan for all bills like car payments, utilities, rent, insurance, and groceries. The budget also needs to have a plan for savings, since nearly half of Americans don’t have any savings for retirement.

Creating and following a simple budget can be easy with a system such as cash only, financial apps, or envelope system.

  1. How Credit Cards Work

Credit cards can be a downfall for college students or young adults. They can be good or bad depending on how you use them. The average Millennial has $42,000 of credit card debt.

It’s important for students to understand how interest on these cards can add up quickly making the balance go up quickly. It’s important for students to know how long it can take to pay off a credit card with high-interest rates.

  1. Why a Good Credit Score is Important

After learning about credit cards, it’s important for students to understand the importance of good credit and why these balances should stay low. A good credit score helps a person qualify for loans, get better interest rates, and even pay less for insurance.

Lower credit scores could cost a person more money because interest rates will most likely be higher on loans. Students should also know how to check their credit reports to watch for errors and know their score by visiting AnnualCreditReport.com.

Students should also learn how they can improve their scores by paying bills on time, managing credit card balances, or tradelines of credits. What is a trade line of credit? It’s a way you can help improve your score.

  1. Learn Basic Investing

Investing can be intimidating if someone doesn’t understand how basic stocks work. It’s important to learn how investing can help you grow your money (or lose your money).

The earlier someone invests means the more money he or she could possibly earn over time. This is why it’s important for young adults to start saving as soon as possible for the long-term future.

  1. How to Balance a Checkbook

People need to learn how to manage their financial accounts even if it’s not the old-fashioned balancing a checkbook. You can’t rely on the balance the ATM gives you or the online balance because not every item may have been deducted.

Learning how to tally your checking account can help you manage money in the future.

Personal Finance Basics You Need to Know

These personal finance basics are not taught in school, and some people learn the hard way. If you want to continue to improve your finances, check out or website. We offer information on building credit, getting loans, saving money, and more.

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