When it comes to managing your money, misinformation can cost you more than you think. Financial myths often sound logical on the surface—but believing them could slow down your progress or even lead to unnecessary debt. Let’s break down three of the most common misconceptions and uncover the truth behind them.

Myth #1: “I’m too young to worry about retirement.”

The truth: The earlier you start saving, the easier retirement becomes.

Retirement might feel lightyears away when you’re in your 20s or 30s, but time is actually your greatest financial advantage. Thanks to the power of compound interest, even small contributions made early can grow significantly over time.

Try this: Start with whatever you can afford—even $25 a month into a retirement account is a great beginning. Increase your contributions as your income grows, and you’ll be amazed at how much you can build with consistency and time.

Myth #2: “Carrying a balance builds credit.”

The truth: You do not need to carry a balance (or pay interest!) to build a good credit score.

Your credit score benefits from using credit responsibly, not from keeping a balance. What matters more is your payment history, credit utilization (how much of your limit you’re using), and overall credit management. In fact, carrying a balance can lead to costly interest charges that hurt your finances more than help your credit.

Try this: Pay your credit card in full every month. Use it for things you’d already buy (like gas or groceries), and pay it off before the due date to avoid interest while still building positive credit history.

Myth #3: “Budgeting means I can’t spend on fun things.”

The truth: A good budget actually makes room for fun.

Budgeting isn’t about restriction—it’s about intention. It gives you control over where your money goes, including the things you enjoy most. Whether it’s dining out, travel, or hobbies, your budget can (and should) include space for what brings you joy—without the guilt.

Try this: Use the 50/30/20 rule as a starting point—50% of your income goes to needs, 30% to wants, and 20% to savings/debt repayment. That 30% is your fun money, and it’s all yours to enjoy—no guilt required!

Smart money habits start with smart information. By letting go of these myths and embracing more accurate financial strategies, you’ll set yourself up for long-term success—no matter your age or income.

At MidSouth Community FCU, we’re here to help you make informed choices every step of the way. If you’re ready to take control of your financial future, stop by one of our branches or explore our online tools—we’d love to help you build your path forward.