Personal Finance “Urban Myths”

Ask students which of the statements below are true (from Kiplingers)?

  1. You don’t need to start saving for retirement until you are 40.
  2. Only rich people get tax breaks.
  3. Gold is the best investment you can make.
  4. Social Security won’t be around when you retire.
  5. Buying a home is fast path to wealth.
  6. You should borrow from your 401(k) when you need money.
  7. Credit cards are bad news and should be avoided.
  8. Only rich people need a will.

As you may have guessed, the answer to all of these questions is “none of them.”  Read the Kiplinger’s article to find out more about these “myths.”  Ask students if they can come up 2-3 of their own “urban myths” too.

Update:

Time noted perhaps an even more disturbing myth here (which you might want to dispel):

A new study from Junior Achievement USA and PwC US conducted by Ypulse finds that 24% of millennials think their student loans will be forgiven.  “It’s a scary statistic,” Junior Achievement president Jack Kosakowski tells CNBC. The survey doesn’t explore why roughly a quarter of young people have such an optimistic — and for the majority, unrealistic — expectation.