6 Money Myths Busted

There are all sorts of misconceptions about money out there, and it can be hard to separate myths from facts. The good news is you’re not alone. There are plenty of reputable financial resources – including your bank or credit union – that you can lean on when you’re in doubt.  

Let’s explore some common myths and see if any resonate:

1. Carrying a credit card balance will improve my credit score. Many people think maintaining a balance on their credit card will help build their credit. The fact is, carrying over a balance from month-to-month usually means paying unnecessary interest. Paying your credit card bills on time is what actually improves your credit score.
2. I’ll get all my money questions answered on social media. There is so much out there on social media, but not all of it is helpful or true. If you think you’ve found valuable information, fact check it with a reliable, experienced source.
3. I’m too young to start saving for retirement. It is never too early to start saving for retirement. Because of compound interest, that magical money-earning unicorn, starting early can significantly increase your retirement fund over time.
4. I don’t need insurance. No matter how healthy you are or how dispensable you think your possessions are, insurance is a critical safety net for unexpected events. You do need it.
5. Earning more money means I’ll lose more to taxes. Yes, making more money will mean paying more in taxes. But your net income after taxes still increases, meaning more money in your pocket.*
6. Wealth means high-income earners. This might be the hardest myth to bust, but the reality is wealth can be built through smart financial habits like budgeting, saving and investing, regardless of income level. While a high income can facilitate wealth accumulation, it's not a prerequisite. Wealth is more about how you manage your money through smart financial habits and decisions. You can build wealth over time with discipline, patience and a strong financial plan.

If managing your money and making a strong financial plan is intimidating to you – you are not alone! There are plenty of smart, reliable resources out there to guide you, but establishing a good relationship with your bank or credit union is key.

When you become a member at UW Credit Union, you’ll have the opportunity to talk with staff who are experts on managing money and can look at your personal situation to help you make smart financial decisions to achieve financial well-being.

UW Credit Union is a financially strong institution, committed to providing financial education and supporting our members and communities in building their financial well-being. We offer free learning seminars, confidential credit consultations and, through our partnership with Banzai, an impressive catalog of financial education resources.

Here for Every You.