6 Money Lessons I Wish They Had Taught Me in School

Here are 6 money lessons I wish they taught me in school and how I’ve incorporated them into my life:

1. The Power of Compound Interest

• Lesson: Early savings and investments can grow exponentially over time due to compound interest.

• How I Incorporated It: I opened a high-yield savings account and started investing in low-cost index funds early. I also contribute regularly to my retirement account to maximize compound growth.

2. Budgeting and Financial Planning

• Lesson: Creating a budget and sticking to it is the foundation of financial health.

• How I Incorporated It: I use a budgeting app to track my spending and ensure I allocate money for necessities, savings, and fun. I also review my finances monthly to stay on track with my goals.

3. Credit Cards and Debt Management

• Lesson: Credit can be a powerful tool, but debt can quickly spiral if mismanaged.

• How I Incorporated It: I pay off my credit card balances in full every month to avoid interest charges and maintain a high credit score. I also avoid taking on debt unless it’s strategic, like for investments or education.

4. Investing Basics

• Lesson: Investing is essential for growing wealth and beating inflation.

• How I Incorporated It: I educated myself on investing by reading books and watching tutorials. Now, I regularly invest in ETFs, diversify my portfolio, and stay consistent even during market fluctuations.

5. Taxes and Tax Filing

• Lesson: Understanding taxes can save money and reduce stress.

• How I Incorporated It: I learned to read my paycheck and identify tax deductions. I use tax software to file my taxes and consult a tax advisor for complex situations to ensure I’m maximizing deductions and credits.

6. Emergency Funds and Financial Safety Nets

• Lesson: Having savings for unexpected expenses provides financial security.

• How I Incorporated It: I built an emergency fund covering six months of expenses. This gives me peace of mind and allows me to handle unexpected situations, like medical bills or job changes, without financial panic.

By applying these lessons, I’ve gained greater control over my finances and confidence in my ability to plan for the future.

Love Cass