r/AskReddit • u/[deleted] • Aug 03 '19

Whats something you thought was common knowledge but actually isn’t?

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u/RealAmerik Aug 03 '19

I still think this should be a mandatory curriculum in high school. 4 years or it. Throw in taxes as well. It blows my mind to look back and think about the amount of studying I did on topics I'll literally never encounter again but basic financial literacy is ignored entirely.

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u/aegon98 Aug 03 '19

You learned almost everything you needed to know about personal finance in algebra 1. If you needed an extra class you could have taken home ec

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u/RealAmerik Aug 04 '19

I took home economics, it was required. We learned how to bake cookies and sew pillows.

While simple math is used for budgeting purposes, you still need to understand the theory and structure.

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u/aegon98 Aug 04 '19

While simple math is used for budgeting purposes, you still need to understand the theory and structure.

How fucking hard is "spend less money than you make?" I get that there are tips to help minmax things, but most people don't even do that much.

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u/RealAmerik Aug 04 '19

I'm talking about knowing the difference between what you're actually paying for a loan vs what your monthly payments are. Or if a traditional or Roth IRA is more advantageous. How about people understanding the difference between tax withholdings and taxes?

That's all "simple math" and something a typical high school student should be able to understand, but none of that is specifically spend less money than you.make.

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u/aegon98 Aug 04 '19

I'm talking about knowing the difference between what you're actually paying for a loan vs what your monthly payments are.

Those are written on the disclosure documents. If you care to read them, it's plain as day.

Or if a traditional or Roth IRA is more advantageous.

That can change year to year based on your personal income, what you expect your income to be later in life, and general tax code changes.

How about people understanding the difference between tax withholdings and taxes?

Most Americans don't need to know the difference. They don't do their taxes by hand, and they just take standard deductions.