Rec | FINANCIAL LITERACY

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Rec'd on 🧐 WHAT’S SOMETHING YOU WISH YOU KNEW SOONER IN LIFE?

My husband and I were both unemployed for a few months last year AND had to move so we ended up putting a lot of our moving and living expenses on a credit card before we got our new jobs. I have FINALLY paid that off and feel like such a weight has been taken off of me. I do not make a lot of money but I am a huge advocate of financial literacy and budgeting. I know we live in a broken arbitrary hellscape system (sorry folks this is US specific) that is quite literally created for and by the benefit of the most monied classes but it is an unfortunate truth that the best way to start to navigate and possibly even benefit from that system is to learn about it. The people “hacking” credit cards (points for free flights, hotels, etc) are already financially stable and responsible, for people with less money or who are paycheck-to-paycheck it is one of the most predatory systems and is a massive disgusting wealth redistribution from the lowest classes to the wealthy classes and banks. The reason they have these points and rewards systems that can be so beneficial is because the majority of people do not benefit from it in any way, they are going further into debt and paying interest. For a larger balance, it can take you literal decades to pay off with only the minimum payments. This system is set up to entrap poor people and make them poor forever. To fight the system, you must learn it. Do everything in your power to get out of and avoid bad debt. If you do want to use credit cards for points and rewards, do it with intention and NEVER carry a balance. People make a big deal about credit and often want a CC so they can build credit, but if you are not thinking of purchasing a home or a new car (the car industry is another evil ploy to impoverish the already poor and saddle them with tens of thousands of dollars of debt on an endlessly depreciating asset, literally never buy a new car, always go used) you don’t need to give a fuck about your credit, you need to stay out of debt! There are other tools to build credit, debit cards that can be used to build a credit history, etc. I would like to go through the rest of my life without another interest charge because it feels like a sad, twisted tax on poverty. If you do not NEED something, do not EVER put it on a credit card unless you are absolutely certain you will be able to pay it off. Oh and fuck klarna, after pay, etc. These are created to make money off of and to subjugate the poor. I could go on and on and on about this but I urge you to do your own research. If the financial system (credit, loans, retirement, etc) seems confusing and intimidating to you, just know it is designed to feel that way. They want you to see it all as boring, impossible, fruitless. they want you to feel disenfranchised and disempowered the moment you think about retirement savings or budgeting. now, more than ever, you should learn what exactly it is you’re up against. TL;DR: do not get a credit card without understand how they work, who benefits from that system, and how/if you even can benefit from it. Focus on avoiding debt more than building credit. Buy a used car. Try to save for retirement. Just keep trying and learning about personal finance and financial systems, even when you feel clueless and overwhelmed. You’re supposed to feel hopeless, do not give up, the wealthy elites are betting on your ignorance and dispassion and they are making billions on it.

@worldonfire

May 2, 2025

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@beangirl94

Agree with everything but will say many rental properties require tenants to have good credit before renting them a unit. If you stay out of debt you shouldn’t have bad credit, but building credit even somewhat is an important part of becoming financialy stable. Credit cards with low limits like ~$500 are great for this.

May 4, 2025

@worldonfire

@BEANGIRL94 there are some debit cards the let you opt in to credit reporting and help you build credit but a card with a low limit is good too! ia fucked up thing that many big bank credit cards do is increase your limit as you keep owing and increasing a balance lmao mine started at like 2,500 and as i kept not paying it off fully they raised it to almost 8k which is crazy and so counterintuitive

May 4, 2025

@olaftheswede

Heeeeeeavy on this. I was having this exact same discussion with my therapist this week. In college I got a credit card to “build credit,” but my parents also aren’t very financially literate, so I was never taught how to responsibly manage it or my money! Now, I’m making efforts to pay off my debt but also in general reevaluate the way that I am consuming things! If I stop for a second and look around I have everything I need! I don’t need to add to cart!

May 2, 2025

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financial literacy-especially around credit cards

In my life, it's very constant that someone gets spooked at the idea of having a credit card. Building credit can be really useful for the future. You in fact need good behavior, specifically with credit to buy things like cars, houses, etc. The bank needs to see that you're trustworthy and deserve to have, say, a loan for the down payment of a property you're buying. If done correctly, you may not even have debt thanks to the credit card you're using. Here's what I do: if I have cash, I keep the cash, always having the total amount present in my mind, and buy whatever I need with the credit card, but pay it in full, so long as it's within my means and doesn't go over the budget, AKA, the cash I have. It could be the smallest thing, like gum, groceries, movie tickets, etc. I pay in the moment with a credit card; again, always being conscious of the real amount I have in cash. When it's time to pay for the expenses made with the credit card, I get to use the cash. That's how, little by little, you may start to build credit. Also, look into the benefits of using your credit card and the loyalty program it may have. In my case, I earn points if I use it and then I can exchange them for stuff. Sometimes the system allows for the points to double or triple depending on if there's an offer they're making, a contest, or simply by buying at stores that use these points, hence the brands behaving like allies to the point system. All this to say, study the way the points work in your favor. So far, I've been able to buy skincare products with them. In my case, the points expire over the course of a year, so that's a thing to look out for as well.

@mariamaria

2d ago

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ANTI-REC: KEEPING A BALANCE ON YOUR CREDIT CARD

I kept a balance on my credit card for years and it weighed on me. Waves of financial anxiety. Even the relatively small amount I had on it felt like a ball and chain. Set yourself free. Pay off your debts and build a savings account, if you are able. It doesn’t need to be $10,000. Work toward $1,000 even. Save enough for that next big emergency or expense. That way you’re not reliant on credit when life happens.

@MidwestZen

Apr 12, 2025

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Learn how to budget

I used to haaaaate money so I just ignored it. Turns out that’s not a great way to manage your money!!! I now have a budget that I’m pretty good with, but man was it difficult to implement. Shout out to my husband for being the leading force in that 👍🏻 Money sucks, it’s stupid, I still hate it but alas, I can’t escape it, so I may as well use it wisely.