What Schools Don't Teach You About Money



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In this video, I cover 5 things about money I wish we learned in school!

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0:00 Intro
0:23 Rent
1:56 Mortgage
2:47 How to Build Credit
5:29 How Much to Save for Retirement
9:00 How to Budget
11:12 How to Invest
12:19 Final Thoughts

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  1. The number one thing they don't teach you in school about money is to save at least 10% of what you make. Sad to see that you didn't include that at the beginning and when you did include savings it was surrounded by additional debt payment. Kids, if you are still in school and have a job, keep it simple. Save your ENTIRE CHECK (except $20 for your expenses) until you get $1000 saved up. When you get to $1000 buy yourself something fun and nice and start saving at least 25% of your paycheck, and NEVER TOUCH THAT SAVINGS ACCOUNT, except for emergencies and to buy a home. Get that habit established EARLY and you will get into the habit of valuing your REAL MONEY and YOUR TIME.

  2. Housing cost (rent or mortgage) should be 25% of your take home pay (net). They raised it to 30% rule because they stopped paying people as much, and what's more insidious is that they expect you to have two incomes to make that amount.

  3. 5 things school and college taught me about money:
    Nothing. We didn't cover anything financial-related in school or college; had to learn it all on youtube. But i can tell you the value of Ο€!…

  4. Great stuff. Question on credit if anyone knows. If I'm paying off, for example, a TV with monthly payments on a Best Buy Credit card and on a 12 month plan, would my credit go down if on month 4 I end up paying off the rest ahead of time to not worry about it anymore? This is something I have heard various times and want to know if its a myth.

  5. I absolutely wish I'd been taught about 'How to Invest' at school. Even just the basics of compound interest, ETF's, funds, and tax efficient investing would have made such a difference. I'd have definitely started investing a proportion of my Saturday job income at 16 if I'd known about this crucial investing information.

    Awesome video as always Daniel!

  6. 2 things: Daniel is so good at financial education he narrated a 13 minute video within the same minute according to his clock (Yay for palindromic times!)
    Also, yes, re: budgeting, cancel that gym membership and work out to Rachel Gulotta Fitness instead!!

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