Posted: Feb 14, 2017 04:02 PM PST
Updated: Feb 14, 2017 11:14 PM PST
You might be hearing the wrong financial advice. Here are some of the most repeated bad pieces of financial advice, according to Business Insider.
1. Save 10 percent of your income for retirement. This might have been true for baby boomers as they came of working age, but millennials and younger workers should realistically be saving about 20 percent for retirement. Life spans are longer, and there's a chance Social Security will not be what it is today 30 years from now.
2. Start saving for children's education right away. Actually, experts say to make sure your No. 1 priority in your 30s is to fully fund your own retirement. Paying back student loans is a better option than saving money for 15-20 years to pay for college up front.
3. Avoid credit cards. Actually, use credit cards, but use them responsibly. They are important to build good credit that will help you make big purchases later on, like a car or a home. Some cards also offer rewards, cash back, and other benefits. Just pay them off on time.
4. Close unused credit cards. Closing old credit card accounts can actually hurt your credit score. Paying off your old cards in full and hanging onto them can boost your credit score. Some companies might close out your account for you if you never use them, however, so dust off that old Capital One card every now and then.
5. Retire as soon as you can. Not everyone must follow the same path when it comes to retirement. Experts say to determine your retirement goals, create a financial plan to reach those goals, and then follow it to make sure you retire with enough income and flexibility.
6. Don't take your Social Security until you've hit 70. Claiming earlier can actually be beneficial, contrary to popular belief, especially if you had or adopted children later in life. Consider your financial goals, and take into account life expectancy.
7. A financial planner is a necessity. If you have modest assets and have a plan to save the right way for retirement, don't hire someone to tell you what you already know. If you do need a one, Business Insider suggests fee-based financial planners, who charge a flat fee rather than receive a commission and are often more reputable.
For more advice and information, visit http://www.businessinsider.com/bad-money-advice-2015-7.