When it comes to money, everyone seems to have advice. The problem? Not all of it is true — and some of it can even set you back financially. These “money myths” get passed down from generation to generation, and while they might sound convincing, they don’t always hold up in today’s financial world.

Let’s bust a few of the most common ones.

Myth #1: Renting is throwing money away

It’s true that owning a home can be a great way to build wealth over time. But that doesn’t mean renting is “wasted money.” Rent can actually make sense if you value flexibility, don’t want the responsibility of maintenance, or aren’t ready to commit financially to homeownership. In some markets, renting can even be cheaper than owning once you factor in property taxes, repairs, and insurance.

Myth #2: You should always pay off your mortgage as fast as possible

Being debt-free feels great, but putting every extra dollar into your mortgage may not always be the smartest move. With today’s relatively low mortgage rates, those dollars might work harder for you if invested elsewhere, especially in accounts with tax advantages like an IRA or 401(k). It’s about balance, not just speed.

Myth #3: You need to be rich to invest

This one holds back so many people. The truth is, you don’t need a fortune to start investing — you just need consistency. Thanks to low-cost index funds, ETFs, and apps that let you invest with small amounts, building wealth is more accessible than ever. Starting early with even modest amounts often matters more than waiting until you have “enough.”

Myth #4: Carrying a credit card balance helps your credit score

This one is flat-out wrong. Carrying a balance just means you’re paying unnecessary interest. What actually helps your credit score is using credit responsibly — keeping your utilization low, paying bills on time, and having a mix of credit types. Consider paying off your balance in full each month to help protect both your credit and your wallet.

Myth #5: Retirement planning can wait until later

The earlier you start, the better. Compounding — the ability for your money to grow on itself — works best with time. Waiting even five or ten years can make a huge difference in how much you’ll have at retirement. Even if you can only start small, beginning now is far better than waiting for the “perfect time.”

The Bottom Line

Money myths are powerful because they sound simple and familiar. But relying on outdated or misleading advice can derail your financial progress. A smarter approach is to question what you’ve heard, do the math, and make decisions based on your personal situation — not old rules of thumb.

And remember: working with a financial advisor can help you separate fact from fiction so your money is working for you, not against you.

Philip Lockwood | Founder + Managing Partner

Address | 1501 Ingersoll Ave. Suite 201 Des Moines, IA 50309 Phone | 515-274-8006

Email | Plockwood@parklandrep.com Website | Lockwood Financial Strategies Securities offered through Parkland Securities, LLC, member FINRA (FINRA.org) and SIPC (SIPC.org). Investment Advisory services offered through SPC, a Registered Investment Advisor. Lockwood Financial Strategies, LLC is independent of Parkland Securities, LLC and SPC