Don’t let common money myths stand in the way of pursuing your financial goals. Just because a belief is widespread doesn’t mean it’s true. Take our quiz to see if money myths may be sidetracking your financial success.
True or False?
Money management strategies are for the rich only. False. Anyone can benefit from basic financial strategies, such as budgeting, regular investing plans, and debt management.
I’m too young to plan my finances.
False. It’s never too early. Even children can benefit from simple money management strategies.
Planning for the future is all about planning for retirement.
False. While planning for retirement is an important goal, planning for other goals, such as buying a house, starting your own business, sending a child to college, or making sure your family is provided for should you die or become disabled are also important to you and your family’s financial future.
Life insurance coverage should equal five times your salary.
False. Your life insurance coverage should be based on your personal situation and your family’s financial needs.
Everyone should save 10% of their salary for retirement.
False. It depends on your situation and goals. If you’re young and getting an early start on your retirement savings, 10% may be sufficient. If you’re older and are just starting to save for retirement, you may need to put away significantly more. But, remember, any amount you save for retirement will help.
I’ll need only 75% of my preretirement income during retirement.
False. While it’s a common rule of thumb to figure that you’ll need at least 75% of your preretirement income during retirement, many people need more to be able to enjoy the retirement lifestyle they want.