Demystifying Money Myths

One of the main downsides of our society is that most of us lack financial education. Teaching about money or talking about money to children is considered a bad practice when, in reality, their lack of information may become a huge drawback in their career. For example, an individual will start their first job but will have no knowledge of calculating taxes. All kinds of myths and wrong conceptions attached with money and related things gain popularity and people for generations follow that, thinking that they are doing it right. It is time to break all those myths and pass on the truth about money to the coming generations.

Money Is The Root Of All Evil

Money is not a living being, hence can neither be good or evil. It is a person’s greed that can lead them to make bad decisions. Einstein had once said that you can either eat an apple or throw it at someone to hurt them. It is our intention that matters when we use money. In fact, something as common as money cannot drastically change a person. If you have always been a compassionate person, money might make you even better because you will have a means to help others. If it is the opposite though, your money management will definitely reflect it.

Money Doesn’t Matter

We often say this along with things like “Money can’t buy happiness”. Is it true, then? Money does matter. Yes, BMWs and Chanel bags might not matter. But, in the long run, earning money and keeping it does matter until we reach financial independence. We give our valuable time in order to earn money and we spend that time building something or creating something. So yes, money is important, not just because it helps us buy material things but also because, without it, we cannot buy our basic needs.

You Can Make Money Only If You Take Advantage Of Others

We grow up with the misconception that people who are making a lot of money are probably cheating on others or doing so at the cost of others. This is a completely wrong idea because it promotes a negative viewpoint on business in general. We are taught to be wary of people who have their own business. It’s true that, at some point, we have encountered a bad deal or a scam, but at the end of the day, most businesses are sincere in what they are offering or selling. In most cases, businesses attract customers through wise marketing strategies which some people perceive as ‘taking advantage’ but that’s the way it works, these strategies help businesses flourish and gain customers. It’s not necessarily taking advantage of customers because when a business gives you what you want, it becomes a win-win situation – they earn profit from your purchase and in return, you are satisfied with what you’ve purchased.

Your Spending Habit Is More Important Than Your Earnings

Expenses, as well as earnings both matter equally. It is important to save and be frugal at times, but, for most of us, it is not possible to do so on regular basis. Hence, it is important to earn more than what you are spending. The more you increase this gap between earning and spending, the better and you can do so by getting another job. If you can manage a part-time job, then do it – the extra cash, no matter how little, can come in handy in the future. When you have extra cash, invest it in stocks, mutual funds or even an investment property. Try to grow your money. Hustle hard!

Money Is The Reason For Conflicts

Again, this myth was born out of our childhood perceptions. We saw everyone around us fighting because of money – or lack thereof. Families quarreled over money, parents fought over finances and bills, siblings were estranged because of money. Naturally, we formed a perspective in our minds that money is the reason for all these conflicts. Truth is, most people who argue because of money are unaware that the real reason of conflict is our priorities. Do we prioritize our health, our bills, or our groceries? Once you sort out your priorities and allot specific amounts to each, then it wouldn’t be too much a problem at all. Simple as that.

Now that the money-related myths have been busted, take some lesson from here, and teach your children the basics of finance. Buy them a piggy bank and ask them to save from their pocket money. We have to teach our children the value of a dollar and make them see that if you know how to handle money well enough, you’ll be financially stable.