Money Myths Minnesota Millennials Need To STOP Believing

DO MILLENIALS KNOW HOW TO USE MONEY?

Do Millenials know how to use money? Credit Cards? Do they understand how important saving money for their future is?

I decided to look into some of the things that Millenials question about money and thought we would bring forward some of the statements made by Millenials to greenpath.com.

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CREDIT CARDS

The first comment: "Credit cards are always bad." That depends on the user. If you can control and watch what you spend on a credit card, having one can help you improve your credit score, which could also improve the interest rates you want, rather than the interest rates you'll get if you don't know how to properly use credit. According to GreenPath, if you can build a positive credit history, you'll have better luck when looking for big purchases, like buying a home.

APPLYING FOR LOANS DOESN'T HURT MY CREDIT

If you are trying to borrow money, you are going to have a hard inquiry on your credit report. Hard inquiries do cause your credit score to drop, but not permanently. That being said, if you have multiple hard inquiries within 45 days, it will act like one single inquiry, not multiple.

SAVING FOR RETIREMENT

I've got kids in this age range, and I try to encourage them to save money now. Whether it's sinking in or not, I'm not sure. But some millennials think they've got all kinds of time before they need to start saving. Saving money when you are in your 20s or earlier can really make a huge difference in your financial future, so don't put it off.

I CAN REPAIR MY CREDIT REPORT BY PAYING OFF MY DEBTS

Yes and no. Negative information will remain on your credit report for up to seven years, and it sucks. BUT! The sooner you improve your financial situation, the closer you are to having a better credit score and the ability to borrow money.

DEBT MANAGEMENT IS FOR PEOPLE WHO CAN'T HANDLE THEIR FINANCES

Ah, being young. The things you don't think about that knock you out of your socks. When you are young, you sometimes don't think about the unexpected expenses that throw a curveball in your perfect budget, like medical bills, losing a job, starting a new career, a major home repair. I wish it wasn't so, but I'm sure you'll go through your share of issues, and you have to take responsibility for them whether you like it or not. How do you stay ahead of this issue? Debt management. That's how.

My good friend Kelly Sjostrom knows all about getting caught up in unexpected debt and wasn't afraid to work her way out of it. She now helps people get ahold of their finances and offers free tools on her website that help people.

Listen to our interview by clicking on the player below. You can also follow the podcast, which has great financial tips for free. kellysjostrom.com.