What are the Money Lessons Not Taught in School?

One thing that is missing is a financial education. Schools miss out on not teaching students about money. Here are some money lessons not taught in school. 

Lesson #1: The Power of Compounding Interest

This concept of compounding interest is one of those money lessons not taught in schools. It shows students that an avalanche can start small with a snowball. As it rolls down a hill it will continue to grow and grow and grow. Eventually, this snowball becomes an avalanche. 

Lesson # 2: Retirement is not at 65

Retirement is not about doing nothing. Being free to do whatever you want without the need of income producing work is financial freedom. This is something that should be taught to students.

Financial independence gives students an idea or a concept to seek. It allows them to not have to work mindlessly at a job they do not enjoy until 65. Then they will have the rest of their life to enjoy their hobbies and passion. Life is far more valuable than working mindlessly for 40 years. 

Seeking Financial Independence

Lesson # 3: Owning Income Producing Assets

Owning assets can be better than a job. It can bring income to you without even working. You have put in the hard work, and now it is time for that hard work and your money earned to work for you . 

Lesson #4: Taxes

Once you start a job there is a little thing called taxes that has to be paid every year. It is the easiest way for the government to collect. If taxes were part of a financial literacy program in school then people would be able to take advantage and save money on doing taxes. Alas, it is not a money lesson taught in school.

With the use of tax advantaged accounts like 401ks, HSAs, and IRAs, you can reduce your adjusted gross income, and minimize the taxes you will have to pay. Even with a couple making $100K a year can reduce their taxes to $0. So take advantage of these accounts, and reap the benefits by paying less in taxes.

Lowering those Taxes

Being able to understand simple concepts of investing can help these students not lose money, but instead help them to make money and create wealth.

Lesson #5: Where to invest your money?

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