Personal Finance Facts in Jan 2022

12 Facts About Money Management Your School Didn't Teach You

Contributors: Nicola Date, Katherine Read. Reviewed by Francis Hui

Are You Intimidated by Personal Finance? Many People Feel That They Their School Didn't Teach Them Enough About It. Learning These 12 Important Facts Is a Great Start. If You Don't Start Now You'll Never Really Learn How to Manage Your Money or Make Smart Decisions With It.

important personal finance facts

12 Important Personal Finance Facts That You Didn’t Learn in School

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Personal finance is a topic that many people don’t know much about. The truth is, personal finance is something everyone should be educated about because it impacts every aspect of your life. This article will cover 12 facts that you may not have learned in school but should know. They will help you succeed financially and live the best possible life.

Fact #1: The Average Person Spends 12-18% More When Using Credit Cards

People spend 12-18% more when using credit cards than when paying cash. This is because people feel like it’s “free money” and don’t think about what they’re spending.

If you want to avoid overspending, always carry cash or a digital wallet with you so that if an impulse purchase pops up, you can take care of business by paying in cash.

using credit card

Fact #2: Do You Know What Interest Rate You’re Paying?

Over 50% of millennials don’t know what interest rate they’re paying on their credit cards and interest rates can vary greatly from bank to bank.

The truth is that when you’re not paying attention, your credit card company might be charging up to 29% on an annual basis for a balance. If you want to avoid this, do some research on what rate banks are offering before applying – it could save you thousands.

Interest Rates

Fact #3: 33% Of College Students Have Made a Late Payment on a Credit Card

Making a late payment is never fun, but 33% of college students have done it. The truth is that if you find yourself in this situation and don’t want to pay the fee for being late, there are other options available like making an online payment on your bank’s website or setting up automatic payments with your credit card company.

college student

Fact #4: Paying the Minimum Required Balance Will Get You Nowhere

You might think that paying the minimum required balance on your credit card bill every month is doing you some good.

But in reality, it’s only going to make things worse. Minimum payments barely cover the interest rate1 charged, and by not making a higher payment each month, you’re never going to get out of debt.

Minimum Payment

Fact #5: Track Your Credit Score to Make Sure It’s Good

Your credit score2 is one of the most critical aspects of your personal finance life.

If you want to make sure that it stays good, track it every so often and know how much you can afford before applying for a loan or trying to rent an apartment – this way, there will be no surprises.

Track Credit Score

Fact #6: Stocks Provide a 10% Rate of Return Over Time

If you’re looking for a good investment, stocks might be the way to go.

People tend to talk about how high risk they are and that they can’t afford “to lose their money,” but stocks provide rates of returns at around 10% over time. There are few other investments with a similar pace.

Rate of Return

Fact #7: Debt Isn’t Inherently Bad

Debt isn’t always bad but it depends on how you use it. If you put your money in a high-interest savings account, then the debt may be worth the risk because of all the interest earned over time.

However, if you borrow to buy something that depreciates quickly and is hard to sell (like art or jewellery), then there’s no question about whether or not borrowing is wise.

How You Use Your Debt

Fact #8: Do You Know the Rule of 72?

The “rule of 72” is vital, it can help determine how long it will take for you to double your initial investment. It’s not hard to calculate – divide the number 72 by the rate at which your money grows (which should correspond with compound interest), and you’ll know how much your investment will grow over time.

Rule 72

Fact #9: Budgeting Is Crucial for Your Financial Success

We all know that a budget can be hard to stick to when times get tough, but the truth is that if you don’t have a plan in place for how much money your’e spending each month and where it should go, then there your’e likely to overspend. Budgeting also helps make sure that you’re not living paycheck to paycheck.

Budgeting Is Crucial

Fact #10: Wealth Doesn’t Equate a Huge Salary

Some people accumulate wealth by owning their own home, living below their means, and saving as much money as possible – all without making six-figure salaries.

Huge Salary

Fact #11: Saving Isn’t Investing

We’ve all heard that “saving is good” but if you’re not investing, then you’re missing an opportunity to grow your money.

Saving can help build your emergency fund and give you a cushion if something happens (like losing your job), but investing will help your money grow. Don’t be too discouraged if you don’t have investments just adjust your plan and have both.

Saving Is Not Investing

Fact #12: Direct Deposits Can Save You Money

If you’re getting paid every two weeks, there’s no need to go into the bank every time or even wait until your bi-weekly paycheck is deposited – sign up for a direct deposit and let everything happen on its own.

Direct Deposit

Common Questions

What Are the Benefits of Personal Finance?

What's Personal Finance?

Why Do We Need Personal Finance?

What Are the Most Important Aspects of Personal Finance for People to Learn?

In Conclusion

Many people will say that personal finance is difficult to grasp. But the truth is, it doesn’t have to be. The more tips and tricks you learn about to make you money go further the easier it becomes to understand and take action in improving your finances.


  • www.purposegeneration.com/buzz/article/12-personal-finance-facts-you-didnt-learn-in-school
  • www.thinksaveretire.com/best-money-management-tips/
  • www.medium.com/the-post-grad-survival-guide/everything-school-never-taught-you-about-money-baadf4625de7
  • www.earncheese.com/post/8-facts-about-money-you-wont-learn-in-school
  • www.medium.com/swlh/personal-finance-lessons-your-school-didnt-teach-you-e42a331f454
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Money Matters
rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.

Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.

Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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