The Top Ten Money Myths:

How Many Have You Fallen For?

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By Will from Holland

As part of my job, I've spent the last four years talking to young people about money. I keep hearing these money myths. How many of these myths have you said to yourself?

1. I don't have to worry about credit at my age.
   Not true. By your early teens, you need to start paying attention to how you manage your money and use credit.
2. Bad credit can't keep me from getting a job.
   Businesses look at credit reports to judge financial stability and personal responsibility. These qualities suggest to the employer that you'll be a responsible employee. Bad credit can hurt your chances of getting a job.
3. All loan companies have the same rates.
   Not true. The difference in interest rates for borrowing the same amount for the same term can be the difference between a $50 and a $100 payment. So before you get a loan, make sure you know the terms.
4. All credit cards are alike.
   Not true. Credit cards have different rates and terms. Make sure you know all the terms associated with your credit card.
5. It's OK to make minimum payments on a credit card.
   You may want to rethink this. If you owe $1000 with an interest rate of 15% and it takes ten years to pay it off, you would have paid $851 in interest. But if you pay $5 more than the minimum, you will be able to pay it off in 4 years and will only pay $395 in interest.
6. Since I have a savings account, I'm earning money.
   Not necessarily. If you have credit cards or loans with a higher interest rate, you could easily be losing money. So instead of putting money into your savings account, try to pay off your credit cards or loans. And remember, you should have enough money in your savings account for a rainy day.
7. It's OK to bounce a few checks.
   Bouncing a few checks is expensive. If you do this every month, you could lose your account and hurt your credit.
8. Paying late occasionally can't hurt my credit.
   Not true. A few payments thirty days late will lower your credit score.
9. Fine print isn't important.
   This is the most important part. The fine print is usually where the binding legal terms of the agreement are located!
10. Young people don't have credit scores.
    Guess what? Age doesn't determine when you have a credit score. The way you handle money determines your score.

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Cheers, Will.