By and large, most Americans have literacy gaps in their financial knowledge. This is proven by surveys conducted by numerous firms reporting most candidates to score 60% or less on questions.
The majority of families and households know they need to save money, limit their debt, and save for retirement; yet, according to a Northwestern Mutual study, 21 percent of Americans have nothing saved at all with only a third or less having less than $5,000.
With either parents or the school system failing to teach the basic fundamentals of money, our economy is witnessing the highest levels of debt ever, and it's a global problem. While we can't resolve the global monetary issues, we can address how our households handle money.
In this article, you will explore 16 different ways to avoid common money mistakes if you are in your 20's or 30's.
1. Spending More than Your Paycheck 2. Delaying to Save an Emergency Fund 3. Borrowing Money from Your Credit Cards 4. Making Minimum Payments on Debt 5. Accumulating Consumer Debt to Buy Things 6. Withdrawing Funds from Your Retirement Account 7. Applying for New Credit Cards 8. Failing to Maintain a Zero-Based Budget 9. Getting a Mortgage You Can't Afford 10. Buying a Car Beyond Your Means 11. Keeping Up With the Joneses 12. Dodging Life Insurance Premiums 13. Shying Away from Investing in Your 401(K) or IRA 14. Avoiding Regular Credit Report Check-ups 15. Not Contributing to Your Child's 529 Plan 16. Becoming a Workaholic & Not Enjoying Your Money