Did you know that Standard & Poor's survey (from GFLEC) ranked the United States No. 14 globally in terms of its citizens' financial literacy? In fact, over half of the county is financially literate. While this might feel embarrassing, it’s pretty understandable. We don’t learn about money in school. Instead, we learn about the Pythagorean Theorem and how to cram for tests.
So, if you’re part of the 43% of the country that’s not financially literate, we totally get it. And we’re here for you. Aside from releasing our guides to financial literacy (check out the banking edition here), we’ve come loaded with eight facts about money that you definitely won’t learn in school to make life easier for you.
1. Debt is Serious
Not all debt is equal. That’s the first lesson we’re here to teach today. However, debt is always serious. Because it’s pretty much an inevitable aspect of American life, debt is something that you’ll want to understand early on. Whether you take out student loans or apply for a mortgage loan for your first home, you’ll be accruing debt. While this is serious, sometimes it’s necessary to reach the next stage of your life. This means that if you take out $30,000 in student loans to get a degree to snag a $75,000 a year job, it’s well worth the temporary debt. However, you also need to understand the severity of making payments on time, keeping your credit utilization low, and trying to take out loans with lower interest rates.
2. Not All Accounts are the Same
Savings accounts are different from checking accounts, which are different from CDs and money market accounts. First of all, a savings account is a type of bank account that allows you to earn interest on your money. CDs often come with a fixed interest rate over a set period of time and you’re not allowed to touch the money once it’s in there. See? That’s quite a big difference.
For more on this topic that you should have learned in school, check out our guides to:
- Savings Accounts vs. CDs: What’s the Difference?
- Hidden Savings Account Costs You May Not Know About
- Here are 4 More Rewarding Alternatives to Savings Accounts
- The 5 Best Money Market Accounts and Rates
3. Also, Not All Credit Cards are the Same
When you’re young and just starting to build credit, it’s easy to think that all credit cards are the same in what they offer you. But, that’s simply not the case. Each credit card comes with its own set of fees and terms. Plus, each card comes with certain perks that may or may not benefit you depending on the lifestyle that you lead. Be sure to first look at the annual fee to see if it’s feasible for your income and spending. Then, look at the perks of each card, such as cashback, points, or miles. Read the fine print, and check out our more in-depth guide to help you along the way:
- The 10 Best Credit Cards in 2020
- Visa vs. Mastercard: What’s the Difference?
- The 5 Best Credit Cards for Home Improvement
- 5 Hacks to Use Credit Cards Wisely
- 5 of the Best Credit Cards for College Students in 2020
- 7 Tips for Paying Off Credit Card Debt
4. Saving Isn’t Investing
While some people might think that saving is a form of investing in themselves and their future, it’s not the same at all. Saving is crucial in order to build an emergency fund for yourself and your family, and it’s a tactic you’ll use when trying to reach big goals such as pay off your credit card debt or purchase a home. Investing is more long-term in that you’re investing your saved money into something that’ll grow you even more money over time. In this sense, investing is more long-term whereas saving is more for meeting short-term goals.
Not sure how to save money? We’ve got an entire Money Saving section for you.
5. You Can Make Money Online
From money making apps to side gigs, freelancing, and other odd jobs, believing that a 9 to 5 is the only way to make money is an outdated myth that is less true now than it has ever been. From selling things online to teaching English online, reviewing products, or walking dogs, there’s plenty you can do that doesn’t require you to sit in an office from 9 to 5 Monday through Friday.
Don’t believe us? Look through our helpful resources to get started:
- 10 Fast Ways to Make Money Online in Legit Ways
- 7 Quick Ways to Make Extra Money
- 10 Things You Can Sell to Make Extra Money
- How to Make Passive Income in 2020?
- 4 Easy Ways to Make Extra Money This Year
- 5 of the Best Paid Survey Sites for Money and Gift Cards
6. Budgeting is Crucial
Budgeting is the basis on which you build your financial foundation. If you didn’t learn to budget in college then now’s the time to do so! It’s a helpful tool that’ll help you hack your way through life regardless of your income or financial situation. To begin budgeting, we’d suggest starting by using a budgeting app. Personal finance apps are plentiful, and we’ve reviewed the best budgeting apps of 2020 to help you find the right one for your spending style.
7. Direct Deposit Can Save You Money
This is something they definitely don’t teach you in school or even when you leave school and are in the workplace full-time. Did you know that you can set up direct deposit and save money? Do you even know what direct deposit is? With a direct deposit, an employer or business will distribute the funds electronically to your checking or savings account, saving you the hassle of having to do, well, pretty much anything. And, it often saves you money in the long-run in terms of banking fees. Here’s Everything You Need to Know About Direct Deposit plus 6 Benefits of Setting Up Direct Deposit.
8. Earning Cash Back is Easy
From credit cards to cashback apps, earn cash while spending is actually quite easy. Ibotta, InboxDollars, Swagbucks, and Dosh are all great money-making apps. However, they still require you to do something. What if you didn’t have to do anything at all? That’s what the Cheese Debit Card is for.
By signing up for the Cheese Debit Card, you’re able to access and unlock savings in the form of cashback and savings bonus. When you tack that onto the fact that the card comes with no monthly fees, no overdraft fees, and great interest rates, it’s just as lucrative as any savings app or money hack you’ll find online. Ready to get started? Sign up today.
