When it comes to personal finance, what did school teach you?



Or money management?

The world tells you to go to school, get educated, and get a job and all will be well, but unfortunately, it’s not that simple.

Schools don’t teach you more about personal finance, which is the bedrock of success. For you to succeed in the world, you need to know more about money than what school would teach you.

Count yourself lucky to be here as I would discuss 5 personal finance rules school won’t teach you.

Let’s get moving…


Budgeting is vital in life, but you won’t learn anything about it in school. Sadly, failing to grasp the foundation of budgeting can put you at a disadvantage in life.

Not knowing how to manage bills and distinguish between desires and wants can lead to hardship at different stages in life. Everyone needs to plan a lifestyle that is supported by earned revenue. This involves knowing how to budget for all bills but still ensuring there’s enough left for necessities.

But no one would like to keep a track of every penny they spend. What you can do is engage in what we refer to as “tactical budgeting”. Tactical budgeting entails developing a budget and plans over a long period. For example, you would identify what you need every month and create a budget around your needs, wants, and the respective cost for the next six months. Then you can separate the amounts into different accounts based on the strategy you set to ensure you don’t go over budget. Refer to your list occasionally to stay on track.


Investing is essential if you want your money to work for you. It is the process through which you take control of your finances. Investing helps you to only increase your money but also produce a supplementary stream of income that could be of benefit to you when you retire. Real estate, agriculture, stocks, etc. Can serve as a stream of income or help grow your income.

You need to put your money into good use, and give it a job. You work hard for the money, so it should work hard for you too. Not investing or investing wrongly can cause a longer working life.

Before you invest, make research so you don’t fall victim to fraudsters. If you take investing seriously, the returns on your assets can provide you with financial stability.

  1. SAVE

In school, you’ll be taught to always save 10% of your earnings. But let’s be honest here, saving 10% of your earnings is not to secure a comfortable retirement only if you’re earning in 6-7 figures. I am not saying saving 10% of your income is a waste of time, but it could be a good start in saving.

For most of us with a paycheck, a decent savings percentage of about 15-25% could be ok.

To save more, reduce your expenses and unnecessary cost, this in turn helps your personal finance.


You might have not heard of emergency funds in the school, luckily for you, you’re reading this article.

According to research, 40% of individuals in America don’t have enough funds to cover a $400 emergency. This percentage is alarming, and it shows how people underestimate the need to have an emergency fund.

What if a problem arises? Will you have enough money to cover the cost of solving the problem?

Always set aside funds for emergencies. The golden rule is to have three to six months of cost saved up, preferably in a high-interest savings account.


Most young people get their credit cards and end up maxing them shortly after they receive them. Then they find themselves in a life of debt where they are forced to pay up huge chunks of interest rates, and sometimes, this results in late payments that could hurt them.

What most people don’t know about is the importance of credit rating and maintaining a great credit history. But would have been aware of the secrets if schools had taught them this life skill.

Here’s what you need to know; your credit score is one of the most significant aspects of your financial health. With a good credit score, it’s a lot easier to get a commercial loan, purchase a house, or purchase a car and makes it much easier to achieve other things in life.

We cannot ignore the importance of credit. One must know how to have a good credit score.

Here are a few pointers to help you do that.

(a) get a credit card; most people believe that getting a credit card is a bad idea, but it is important in building your credit score. This is how it works once you get a credit card and use it. Financial institutions record all your transactions and interest payments. They assign a score to your name based on your ability to repay your debt. So, when you apply for a loan, your credit score will determine the loan amount you can receive and the interest rate.

(b) Always make on-time payments on your debts; make sure you pay your debt when it’s due.

Hope you learned something?

Let us know if you did in the comment section.