Social media is filled with a lot of bad financial advice. That’s why GFL NYC asked some legit financial influencers—also known as finfluencers—to debunk some common money myths and set the record straight for NYC high school students. From crypto to cash stuffing, from part-time jobs to the value of a college degree, here’s what they have to say.
Credit
Myth: You should open as many credit cards as you can to build credit.
Reality: Having a bunch of credit cards just increases the likelihood you’ll lose track of payments and end up owing interest. If you have one credit card and use it responsibly (paying on time and in full every month, for instance), that’s all you need to build a good credit score.
Health Insurance & Benefits
Myth: Health insurance is a waste of money if you’re young and healthy.
Reality: You always need health insurance throughout your life, regardless of your age or how healthy you feel. An accident or unexpected medical expense can put you in serious debt.
Credit
Myth: Carrying a balance on your credit card is good for building credit.
Reality: Pay off your credit card in full and on time every month, no matter what. Otherwise, you’ll end up paying interest and hurting your credit score.
Smart Spending
Myth: Buying everything online is a smart money move.
Reality: Companies are very savvy, especially on the internet. They know how to get us to want more and spend more. Buying online means buying more.
Saving in a Bank
Myth: The only way to save money is to focus on it every day.
Reality: The best way to save money is to automate. It’s like putting your savings on autopilot.
Priorities
Myth: Money can’t buy you happiness.
Reality: Money alone may not make us happy. However, the experiences and opportunities to give back that money provides can. One study found that the happiest people made about $75,000 per year.