We are taught about Pythagorean theorem and all sorts of other bits and pieces at school, but when it comes to true skills that are useful in life, it could be argued that we are somewhat lacking.
As today’s title might have suggested, there is a sense that financial skills fall into this category. Sure, we might all be taught how to add money together, and do the basic numbers involving interest rates and so on, but anything that can be practically used isn’t commonplace in schools.
This is the reason behind today’s post. Let’s now take a look at four things that schools don’t tend to teach about money, even though you really should know them.
Plan for retirement before it actually happens
This is one of the big mistakes that a lot of people make. “Retirement” is a word that is only really used at 65 according to some, when in reality plans should be initiated long before this.
You need to be calculating your salary, annual retirement expenses (remember everything from funeral costs to potential care home fees), inflation rate and even the age you want to retire.
It’s only at that point will you know if you are doing the right things and your latter years really are going to be taken care of. If you leave it until the retirement age, you will have missed the boat to rectify this.
Investing isn’t just something for the wealthy
The term “investing” is often associated with the rich and famous. As it turns out, it can apply to anyone. Sure, there are different levels of investing, but even just small amounts can really boost your income over the long-term.
When we talk about these small amounts, it could even be something like $5 a week. Over time, this adds up, and coupled with the returns it means that you can really boost your own coffers.
Credit cards don’t have to be villains
One financial lesson we do seem to be taught at school is that credit cards are pure evil. Considering all of the horror stories that circulate around these pieces of plastic, and the amount of debt that people can accumulate, this might not be surprising.
If you look at credit cards from another perspective, they can help you immensely though. There are now so many 0% interest cards that it can make big purchases much easier – or it might just allow you to pay your insurance premiums as one lump sum, rather being charged the earth by their finance companies.
There should always be money left over
The final lesson is that there should always be money left over. Sure, there might be some circumstances where this really isn’t possible, but if your current financial plan involves spending until the very last cent has gone, you need to reassess. There will always be occasions where you need a little bit extra cash – so make sure you plan accordingly.
