A few Persistent Myths about Money

Myths persist in a given society because they're needed to conceal the underlying truths that they pertain to. In order to deal effectively with them, they must be confronted head-on with balanced thinking and wise insight, and without the fear and rationalization that initially brought them into being. Here, in no particular order, are several money myths that still remain strong among many individuals. As you study them, try to determine if they've influenced some of your own attitudes.

Myth: Having money means easy living and fewer worries.

It's tempting to believe that people who have money are wise, self-disciplined, self-confident and untroubled. Yet having money does not by itself lead to feelings of security, and at times not even to feelings of financial stability. How you feel about life and how comfortable you are about money management is not determined by the size of your bank account, but by your values and priorities. In order to take responsibility for your well-being, you must establish not only financial but life priorities and execute choices each day with regard to those priorities.

Myth: Financial matters are too complicated for me to understand and master.

Financial competence is like most other challenges in life: you have to master the fundamentals one at a time. You begin first by learning the financial basics and the practical steps that must be taken to resolve the particular financial concerns in your life. Don't be afraid or embarrassed to seek appropriate guidance from skilled partners, family members, friends, or professionals when their advice is needed.

Myth: Financial planning and investing should be left to the money experts.

Each of us must take responsibility for our own patterns of spending, difficulties with budgeting, and willingness (or unwillingness) to plan, save, and invest for the future. Where finances – and, indeed, all matters – are concerned, be ready and willing to communicate with your spouse, partner, and other family members. You'll then feel a more stable position of support from which to choose financial experts wisely and deal more constructively with them.

Myth: Genuine love and true commitment will conquer all, including money problems.

Would that it were true. Too often anxiety over money matters becomes rationalized when two people are in love; unfortunately, these are romantic impulses and not based on anything realistic or practical. But what real love and commitment can do is to help establish a dialogue between partners. This must include the honest expression and mutual respect of both party's feelings about money, along with the time needed to resolve any money issues amid one another.

Myth: Better quality in goods or services always costs more.

Quality and cost are not always necessarily linked, but the image of quality portrayed by elaborate packaging and advertising is most certainly connected. As a matter of fact, the amount that companies pay for branding, advertising, and prestige are just as important as what they spend on materials, labor, and other basic costs. All are factored into and dramatically impact the prices that are passed on to the buying public for nearly all goods and services, including housing, clothing, education, recreation, transportation, food, and the list goes on. As a savvy consumer, don't be continually drawn into such illusions of quality.

Myth: Credit and debit cards are convenient means by which to make purchasing easy.

Yes, this may be true; however, the other side of the equation must also be taken into account. Put simply, the word "convenient" is often no more than a quaint euphemism for "too easy." With debit and credit card use, the act of consciously paying money for the goods and services received is all too often missing. As such, the benefit of deliberately planning one's everyday purchases and limiting impulse buying to a budgeted amount each month is lost.

Myth: Money is an appropriate substitute for love or spending quality time with someone.

Very few people would agree that this is true, but actions often speak louder than words. Money is a symbol of success, power, and control. Many times it's substituted for other types of investments in relationships, such as time, energy, thoughtfulness, empathy, or tenderness. While most would like to deny doing this, it's likely that we have all been guilty of engaging in such a substitution at some point.

Myth: Financial security is determined by the amount of your accumulated assets and capital.

Security itself is never determined by quantitative measurements alone, but rather by the fullness of life, relationships with others, and attitudes and values in general. Real security is the sustained feeling and belief that you'll be able to handle unforeseen challenges as they arise, whether they're financial in nature or some other matter. Money is a tool that should be used for positive growth and the affect of one's surroundings. Unfortunately, for many people, money (or the lack of it) is allowed to instead cause anxiety and stress.

Myth: Management of family finances should be handled by the spouse or partner most comfortable or skilled in financial affairs.

Both partners in a relationship should be actively engaged in, or at least knowledgeable of, all aspects of the family's finances. Money management should not be looked upon as a chore to be avoided; it is a vital part of the household's and your relationship's well-being. You may even find that working with your loved one on the business affairs of your marriage or partnership can be fun and personally rewarding, and not just in the area of finances.

Myth: Having lots of money is the best gauge of "success" in our society.

While this notion forms the basis for much of society's interactions, it is nevertheless a mistaken belief. Yes, the accumulation of money has certainly been used as one very important determinant; however, we only to need look at some of the tragic portraits of those whose lives have been ruled by wealth to see that it's actually quite useless as a primary success indicator. Even opinion polls bear out – by a substantial margin – that "life satisfaction," "a happy marriage," and other inward fulfillments are more cherished signs of success than having lots of money.