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Mom and Dad were right a lot of the time: Scratching only makes it worse; high school's not the end of the world; and that style (whatever "that style" was in your day) isn't flattering, even if all the popular girls are wearing it.
But they got a few things wrong, too. Your face didn't stick permanently in that expression, and your eyebrows did grow back. Eventually.
Still, some false kernels of wisdom passed down the family tree could be stunting your financial growth to this day. So settle in for some regression therapy, as we identify the little white lies from your tender years that you need to let go.
"Don't cry at the checkout counter." Actually, go ahead and unleash the tears. When you let yourself feel the physical loss of spending money (actually taking cash from your wallet and handing it over to the clerk), you're more likely to make better decisions about what you buy. On the other hand, credit cards -- like Vegas gambling chips -- remove the emotion from the transaction. And numb spending leads to dumb spending.
"Money doesn't buy happiness." Oh yes it does. Sorta. You don't need a behavioral economist to tell you that a raise or unexpected windfall puts a kick in your step. But you should consult a scientist to measure your buzz. We consistently overestimate (or don't accurately remember) how joyful something makes us feel. Studies show that once you're financially stable (meaning you can cover your bills and still have some fun money left over), extra financial padding has only a limited and rapidly diminishing effect on your overall happiness. But making the pursuit of wealth one of your top goals in life will more likely lead to depression, anxiety, and stress.
"Everyone is not staring at you." Well, maybe not in that way. But acquaintances and strangers are sizing you up all the time. It's not your jeans or prom date that they're judging, but your banking, driving, renting, and health habits. Employers, insurers, landlords, credit card companies (as well as the IRS, DOJ, FBI, and other acronym-happy entities) regularly pull your consumer files. Luckily, you don't have to read the rumors about yourself on a bathroom wall. You are entitled to see your consumer disclosures (there could be as many as 14) for free once a year. Take a peek into your secret files to see what everyone's saying about you.
"You'll never be sorry if you play it safe." No dad in history ever said, "Let 'er rip!" before handing Junior the keys to the car. But he'd have done his progeny a favor if he gave that advice about money. It's true that gambling and uninformed risk-taking is bad for your bottom line. But so is playing it too safe with your money. If you stash your cash in the mattress, sure, it'll still be there years later (provided mom didn't find your hiding place). But inflation will severely erode its buying power. Historically, inflation runs between 3% and 4%, meaning the spending power of that cash kitty you hid your senior year in high school will be cut in half by your 20-year reunion. You'd be better served if your parents had warned you that inflation was a silent killer.
"Soda and cigarettes are bad for you." Physically, that may be true. But the companies behind these products -- PepsiCo (NYSE: PEP ) and Altria (NYSE: MO ) -- have provided a healthy kick to shareholders by paying handsome dividends over time. In fact, there are mutual funds solely devoted to investing in all those vices your elders said to avoid. Unfortunately, the rub with many such investments is the higher-than-average fees they charge investors to buy into them. That exposes yet another white lie: Nice guys don't necessarily finish first. (Financially, at least.)
Your parents obviously did a great job raising you. (You're around to read this, right?) Now it's time to fully take the reins of your finances and show Mom and Dad that their kids can teach them a few things, too.
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