5 Things We All Should Have Learned in School

As adults, we all thoroughly understand the importance of the old saying, “Hindsight is 20/20.”  Looking back on life, the things we should have known are much easier to see.  The best thing we can do about this is pass the knowledge down to a younger generation and hope they are not quite as stubborn as we were.

Of course, there are plenty of hard-headed people in the world that would rather learn from trial and error.  In the interest of the young people, here are a few things we all should have learned in school, but didn’t!

What the Heck is a Credit Report?

As a young adult, credit seems like some mystical power that affords the ability to get money.  The credit report is feared, rather than respected.  Credit reports determine eligibility for a home loan, a car loan, and even some employment opportunities.

A low credit score can effectively ruin a person’s financial life.  Take the time to fully understand the details and ramifications of credit reporting and credit history.  It matters.

What is a Secured Credit Card?

The power of the credit card is strong.  Avoid any other type of credit application that is not secured.  A secured credit card will assure that there is never a reason for the lending organization to report a negative relationship because there is a required deposit (usually the credit limit) before activation.

As a general rule, try not to charge any more than 30 percent of the full capacity of the credit card to assure a steady account maintenance.  Also, begin each month with a zero balance if possible.

How Do People Buy Their Homes?

Buying a home is a somewhat complicated process.  It is crucial that the homebuyer has all of their financial ducks in a pretty little row before ever beginning the process of buying a home.  It will make the paperwork much more manageable.

Learn what an “income-to-debt ratio” entails.  If a buyer’s income-to-debt ratio is too high, the likelihood of obtaining a home loan is much lower.  Have a realtor do the math before entering negotiations over property.

Is an Associate’s Degree Necessary?

In today’s economy and job market, an Associate’s Degree is what having a High School Diploma used to be.  It is a step to a higher level, but the actual degree is not necessary.  Most college students roll on past the associate’s and fulfill the requirements of a Bachelor’s Degree.

Extensions Are Always an Option

This is not a universal truth, of course.  It does, however, apply to most payment plans.  If the electric bill is a little late, make a phone call.  It is almost a sure thing that the power company has some buffer built into their policy. Just ask!