Skip to content

Top Navigation

Parents Parents
  • GETTING PREGNANT
  • PREGNANCY
  • BABY NAMES
  • BABY
  • TODDLER
  • BIG KID
  • FUN
  • HEALTH
  • PARENTING
  • FOOD
  • HOLIDAY
  • News
  • THE STAY AT HOME GUIDE
  • SHOP
  • OUR MAGAZINES
  • MORE

Profile Menu

Your Account

Account

  • Join Now
  • Your Profile
  • Your Profile
  • Newsletters
  • Manage Your Subscription this link opens in a new tab
  • Give a Gift Subscription this link opens in a new tab
  • Cozi Family Organizer this link opens in a new tab
  • Help
  • Logout
Login
Subscribe
Pin FB

Explore Parents

Parents Parents
  • Explore

    Explore

    • 22 Chore Ideas for Every Type of Kid

      Find a chore your kid loves to do, and start a habit of wanting to help out that'll last a lifetime. Read More Next
    • Top 5 Mom Friend Problems—And How to Fix Them

      Parenting is so much easier with good pals. Learn to overcome friendship hurdles and bond with women who get you. Read More Next
    • How to Sleep Train Toddlers and Big Kids

      I’m a pediatric sleep specialist who has seen it all, and I’m here to tell you that it’s not too late to get your child to (happily) stay in his own bed all night long. Read More Next
  • GETTING PREGNANT

    GETTING PREGNANT

    See All GETTING PREGNANT

    Your Chances of Getting Pregnant Every Day of the Month

    When sex coincides withĀ your most fertile ovulation days, you'llĀ increase the chances of conceiving.Ā Get to know each phase of your cycle to get pregnant faster.
    • Ovulation
    • Reproductive Age
    • Maximizing Your Fertility
    • Pre-Pregnancy Health
    • Trying to Conceive
    • Dealing With Infertility
    • Genetics
  • PREGNANCY

    PREGNANCY

    See All PREGNANCY

    Signs of Approaching Labor: How to Tell Your Baby is Coming Soon

    Anxiously awaiting your baby’s arrival? Learn to recognize the first signs of labor approaching, which signal that your little one might make an appearance soon.
    • Signs of Pregnancy
    • Pregnancy Week-by-Week
    • Giving Birth
    • Labor & Delivery
    • Pregnancy Symptoms
    • Due Date Calculator
    • Pregnancy Complications
    • Fetal Development
    • Gender Prediction
    • Baby Showers
  • BABY NAMES

    BABY NAMES

    See All BABY NAMES

    These Are the Most Popular Baby Names of 2020

    Curious which baby names stole the show this year? From new classics like Noah to tried-and-true faves like Ava, here are the top boy and girl names of the year so far, plus more naming trends to consider.
    • Baby Girl Names
    • Most Popular Names
    • Names by Origin
    • Twin Names
    • Baby Boy Names
    • Names by Religion
    • Celebrity Baby Names
    • Baby Name Quizzes
  • BABY

    BABY

    See All BABY

    How to Decode Your Baby's Cough

    Caring for a baby with a wet or dry cough? Listen for wheezing, hacking, or barking first, then read on to find out what's normal and when it's time to worry.
    • Newborn Care
    • Crying Baby
    • Health
    • Baby Development
    • Safety
    • Gear
    • Breastfeeding
    • Diapers
    • Sleep Issues
    • Feeding
    • Nursery
  • TODDLER

    TODDLER

    See All TODDLER
    • Preschool Activities
    • Behavior & Discipline
    • Toddler Development
    • Milestones
    • Potty Training
    • Starting School
    • Health
    • Safety
    • Childcare
  • BIG KID

    BIG KID

    See All BIG KID

    How to Deal With Bullies: A Guide for Parents

    Mean kids aren't just a middle-school problem. The trouble has trickled to the youngest grades. Learn how to spot it—and how to protect children of all ages from bullies at school.
    • Education
    • Health
    • Food & Nutrition
    • Bullying & School Problems
    • Child Development
    • Safety
    • Manners & Responsibility
  • FUN

    FUN

    See All FUN

    17 Budget-Friendly Kids’ Birthday Party Ideas

    A fun celebration doesn’t need to cost a pretty penny. Throw a memorable bash with these clever cost-cutting kids’ birthday party ideas.
    • Birthdays
    • Indoor Activities
    • Outdoor Activities
    • Arts & Crafts
    • Printable Coloring Pages
    • Kids' Entertainment
    • Best Toys
    • Holidays
    • Family Vacation Ideas
  • HEALTH

    HEALTH

    See All HEALTH

    All About Coronavirus COVID-19: A Concerned Parent's Guide

    Here’s everything you need to know about the disease that originated in Wuhan, China.
    • ADD & ADHD
    • Allergies
    • Autism
    • Cold & Flu
    • Coronavirus and COVID-19
    • Cough
    • Down Syndrome
    • Emergency Aid
    • Fever
    • Medication & Vitamins
    • Obesity
    • Rashes
    • Stomach Aches
    • Vaccines
  • PARENTING

    PARENTING

    See All PARENTING

    The Stay at Home Guide for Parents

    Everything you need to thrive at home as a family.
    • Positive Parenting
    • Parenting Style
    • Celebrity Parents
    • Family Dynamics
    • Divorce
    • Home
    • Adoption
    • Just for Mom
    • Money
    • Toy Recalls
    • Stroller Recalls
  • FOOD

    FOOD

    See All FOOD
    • Family Recipes
    • Baby Food
    • Toddler Finger Food Recipes
    • Hints & Tips
    • Healthy Eating
    • Birthdays
    • Holiday Recipes
    • Quick & Easy Meals
    • Food For Pregnant Women
  • HOLIDAY

    HOLIDAY

    See All HOLIDAY

    6 Easter Egg Science Experiments for Kids

    Smarten up your annual Easter tradition with these easy, educational egg dyeing ideas.
    • Christmas
    • New Year's
    • Valentine's Day
    • Easter
    • Mother's Day
    • Memorial Day
    • Father's Day
    • 4th of July
    • Halloween
    • Thanksgiving
    • Hanukkah
  • News
  • THE STAY AT HOME GUIDE
  • SHOP
  • OUR MAGAZINES

    OUR MAGAZINES

    See All OUR MAGAZINES
    • Parents
    • Parents Latina
    • Ser Padres
  • MORE

    MORE

    • Newsletters
    • Contests
    • ParentsIRL
    • Adulting
    • First Year Playbook
    • Celebrate Your Way

Profile Menu

Subscribe this link opens in a new tab
Your Account

Account

  • Join Now
  • Your Profile
  • Your Profile
  • Newsletters
  • Manage Your Subscription this link opens in a new tab
  • Give a Gift Subscription this link opens in a new tab
  • Cozi Family Organizer this link opens in a new tab
  • Help
  • Logout
Login
Sweepstakes

Follow Us

  1. Home
  2. Parenting
  3. Money
  4. Family Finances
  5. The Truth Behind 12 Money Myths

The Truth Behind 12 Money Myths

By our partners at LearnVest
March 12, 2012
Skip gallery slides
Save Pin
Credit: Ocean Photography/ Veer
Is it better to use cash instead of credit cards? Discover the answer to this question (and more) to give you peace of mind about money.
Start Slideshow

1 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Our lives are stressful enough without having to deal with fears about money, the future, and the unknown. In the personal finance business, we speak to a lot of people and hear a lot of theories about money. Many of our readers are simply doing the best they can, while we work hard to provide guidance, support, and assuage their fears. To help you focus your energies on leading the life you want, we've compiled the top money myths we've heard. Read them, learn the truth, and put these money worries to rest.

  • Organize Your Family Finances: Sign Up for a 10-Day Budget Boot Camp

1 of 13

Advertisement
Advertisement

2 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: It's bad to check your own credit score too often.

Credit: Image Source/Getty

Truth: Although it will hurt your credit for too many outside agencies (like potential lenders or landlords) to get official copies of your credit report around the same time, checking your own credit score is free, simple, and easy. Simply go to Credit Karma (www.creditkarma.com); it will take minutes.

2 of 13

3 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: It's bad to use ATMs because someone could be skimming your card.

Credit: iStockphoto

Truth: People have reported scams in which ATM card readers "skim" the info from your account to gain access to your finances, but that doesn't mean you can't use ATMs anymore. If you find yourself a victim, your bank should reimburse the money that was lost, according to Bankrate (www.bankrate.com). In the meantime, be alert by regularly checking your accounts for suspicious activity, and keeping your eyes out for anyone who tries to "help" you at an ATM; for a machine that doesn't look quite right; or for unusual signage that tells you to swipe in a different way. If your card isn't returned immediately after your transaction or after you've pressed cancel, tell your bank right away.

3 of 13

Advertisement

4 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: It's better to use cash than credit cards so you can stay on top of your spending.

Credit: Bryan McCay

Truth: Making purchases via credit card statements lets us review all of our spending in one, consolidated place. Plus, credit cards offer protections like insurance for purchases, travel insurance, and the ability to dispute charges. We recommend going cash-only if you have trouble controlling your spending. If so, your first order of business is to take a look at your habits and gain control over the way that you treat money.

  • 5 Credit Card Myths You Should Ignore

4 of 13

5 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: You shouldn't make deposits to an ATM because a machine is less trustworthy than a human.

Credit: Michael Garland

Truth: Humans can make errors too. Either way, it's your bank's responsibility to resolve the discrepancy. Pay close attention as you make your transactions and immediately report anything that goes amiss. Your bank is obligated to investigate the issue, so make sure that you have all necessary dates, transaction numbers, and pertinent info.

5 of 13

6 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: You should try to pay off student loans as soon as possible.

Credit: iStockphoto

Truth: The most urgent debt is the kind that charges the highest interest rates. Although $30,000 in student loans may feel like a lot -- and you might be tempted to hack away at it as soon as possible -- it's more important to address that $500 in credit card debt first. Here's why: If, say, that $500 in credit card debt charges an interest rate of 15 percent and your students loans have an interest rate of 6 percent, you're losing money much faster from the credit card fees. That's where you should focus your efforts first.

6 of 13

Advertisement
Advertisement
Advertisement

7 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: If you want your money to be safe, you shouldn't gamble it on the stock market.

Credit: iStockphoto

Truth: This is true, in part. Investing in the stock market comes with real risk, and there is a chance you could lose funds if that's where you put your money. At the same time, if you're saving over the long haul, the "safest" place to put your money isn't necessarily in a bank account. Over the years, inflation has tended to average about 3 percent, meaning that your money loses that much of its value every year. If your savings account is providing you with a mere 1 percent, you're actually losing money because you're not keeping up with inflation.

7 of 13

8 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: If you can time the market by buying when a stock is low and selling when it's high, you'll be golden.

Credit: Joshua Sears

Truth: This is true enough, but one of the biggest follies of investors is thinking that they can time the market. The majority of professional investors can't even time the market accurately -- don't get caught up in thinking you're the exception. We recommend against day trading or trying fancy tricks unless you're a professional.

8 of 13

9 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: The sale price is actually the lowest price.

Credit: Veer

Truth: First, buying something you don't need is never a good deal, even if it's on sale. Second, know that some "sales" aren't as good as they could be. Before jumping into a deal from Groupon or any other source that offers limited-time deals, quickly search the Internet to see if you can find comparable prices elsewhere. If so, take your time deciding if this is something you really want.

9 of 13

Advertisement
Advertisement
Advertisement

10 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: You can't afford to travel unless you have lots of money in the bank.

Credit: Stockbyte/ Getty Images

Truth: Although we're all about encouraging you to save, it's important to remember what you're saving for. Life is for living, and we want you to minimize stress and enjoy where you are now. That's not to say you should have a major splurge, but even if your budget can support no more than a staycation, the most important thing is to make time for yourself.

10 of 13

11 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: Canceling all your excess credit cards will help your credit score.

Credit: donding - Fotolia.com

Truth: We don't recommend having too many open credit cards because that tempts you to use them all, and creates an administrative nightmare in keeping up with the paperwork. All the same, your credit score will take a small hit when you cancel a card, and it'll take a much bigger hit if you cancel a bunch at the same time. We recommend canceling only one credit card per year. If you have more than that, vow not to use the rest, tuck them away in a drawer, and make a calendar reminder to cancel another one next year, and the year after that.

11 of 13

12 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: When you deserve a raise, your boss will give it to you.

Credit: Veer

Truth: Not so. Plus, we think it's actually good for you to practice standing up for your own worth. Think of it as an exercise in recognizing your own strengths and stating your case with confidence.

12 of 13

Advertisement
Advertisement
Advertisement

13 of 13

Save Pin
Facebook Tweet Mail Email iphone Send Text Message

Myth: The cost of an item is what's on the sticker.

Credit: Ocean Photography/ Veer

Truth: You may end up paying more than just the sticker price: Remember that computers require software, clothing requires maintenance, and cars require insurance. That's not to say that you shouldn't have any belongings, but it's important to go in with your eyes open. We're all about the joys that come from living simply.

Originally published on LearnVest.com; republished with permission.

Copyright &copy 2012 Meredith Corporation.

13 of 13

Replay gallery

Share the Gallery

Pinterest Facebook

Up Next

Share the Gallery

Pinterest Facebook
Trending Videos
Advertisement
Skip slide summaries

Everything in This Slideshow

Advertisement

View All

1 of 13
2 of 13 Myth: It's bad to check your own credit score too often.
3 of 13 Myth: It's bad to use ATMs because someone could be skimming your card.
4 of 13 Myth: It's better to use cash than credit cards so you can stay on top of your spending.
5 of 13 Myth: You shouldn't make deposits to an ATM because a machine is less trustworthy than a human.
6 of 13 Myth: You should try to pay off student loans as soon as possible.
7 of 13 Myth: If you want your money to be safe, you shouldn't gamble it on the stock market.
8 of 13 Myth: If you can time the market by buying when a stock is low and selling when it's high, you'll be golden.
9 of 13 Myth: The sale price is actually the lowest price.
10 of 13 Myth: You can't afford to travel unless you have lots of money in the bank.
11 of 13 Myth: Canceling all your excess credit cards will help your credit score.
12 of 13 Myth: When you deserve a raise, your boss will give it to you.
13 of 13 Myth: The cost of an item is what's on the sticker.

Share options

Facebook Tweet Mail Email iphone Send Text Message

Login

Parents

Magazines & More

Learn More

  • About Us
  • Subscribe this link opens in a new tab
  • Customer Service this link opens in a new tab
  • Cozi Family Organizer this link opens in a new tab
  • Advertise this link opens in a new tab
  • Content Licensing this link opens in a new tab
  • From Our Sponsors this link opens in a new tab
  • Affiliate Program this link opens in a new tab
  • Sitemap

Connect

Follow Us
Subscribe to Our Newsletter
Other Meredith Sites

Other Meredith Sites

  • 4 Your Health this link opens in a new tab
  • Allrecipes this link opens in a new tab
  • All People Quilt this link opens in a new tab
  • Better Homes & Gardens this link opens in a new tab
  • Bizrate Insights this link opens in a new tab
  • Bizrate Surveys this link opens in a new tab
  • Cooking Light this link opens in a new tab
  • Daily Paws this link opens in a new tab
  • EatingWell this link opens in a new tab
  • Eat This, Not That this link opens in a new tab
  • Entertainment Weekly this link opens in a new tab
  • Food & Wine this link opens in a new tab
  • Health this link opens in a new tab
  • Hello Giggles this link opens in a new tab
  • Instyle this link opens in a new tab
  • Martha Stewart this link opens in a new tab
  • Midwest Living this link opens in a new tab
  • More this link opens in a new tab
  • MyRecipes this link opens in a new tab
  • MyWedding this link opens in a new tab
  • My Food and Family this link opens in a new tab
  • MyLife this link opens in a new tab
  • Parenting this link opens in a new tab
  • People this link opens in a new tab
  • People en EspaƱol this link opens in a new tab
  • Rachael Ray Magazine this link opens in a new tab
  • Real Simple this link opens in a new tab
  • Ser Padres this link opens in a new tab
  • Shape this link opens in a new tab
  • Siempre Mujer this link opens in a new tab
  • Southern Living this link opens in a new tab
  • SwearBy this link opens in a new tab
  • Travel & Leisure this link opens in a new tab
Parents.com is part of the Parents Network. © Copyright 2021 Meredith Corporation. All Rights Reserved. Privacy Policythis link opens in a new tab Terms of Servicethis link opens in a new tab Ad Choicesthis link opens in a new tab California Do Not Sellthis link opens a modal window Web Accessibilitythis link opens in a new tab
© Copyright . All rights reserved. Printed from https://www.parents.com

View image

The Truth Behind 12 Money Myths
this link is to an external site that may or may not meet accessibility guidelines.