A lot of advice about money seems smart at first, especially when it comes from friends or social media. But some of those personal finance myths young adults believe are actually holding you back. According to a LendingTree survey, 96% of Americans believe at least one money myth, and 27% of Gen Z picked up those myths from social media like TikTok or Reddit. Let’s bust five of the most common myths that could be derailing your saving strategies—confidence, clarity, and compound growth over confusion.
Myth 1: “You Should Always Pay Off All Debt Before Saving”
This myth hits hard on platforms where people share “pay off everything first” stories. But once you stack all your money onto debt, you might miss out on compound interest. Reddit users pushing back suggest a more balanced approach: pay down high-interest debt while building at least a starter emergency fund. That way, you’re not sacrificing growth for clean debt.
Myth 2: “Renting Is Throwing Money Away”
The idea that “rent is garbage money” is a classic Gen Z myth—but it’s not always true. With high property taxes, unpredictable maintenance costs, and low housing affordability, buying might not be better right now. Redditors often point out that renting gives you flexibility and frees up money for savings or investments—especially if you’re still figuring out your long-term plans.
Myth 3: “You Need a Lot of Money to Start Investing”
It’s easy to let myths like “investing is only for the rich” stop you before you begin. Social media trends tell a different story—tons of apps exist now that let you start investing with as little as $5. Redditors recommend consistently putting small amounts in low-fee index funds or a Roth IRA to let compound interest work for you over time.
Myth 4: “Cutting Small Expenses Will Make You Rich”
There’s talk on Reddit threads about quitting coffee or canceling streaming subscriptions to save money. While those add up a bit, the smart talk emphasises that real savings come from larger lifestyle choices—like rent, transportation, and food hacks—or leveling up your income via a side hustle or gig work. Those shifts move the needle far more.
Myth 5: “You Shouldn’t Save for Retirement in Your 20s”
Some think retirement is too far off to worry about now. Surprisingly, data shows 29% of Gen Z and 26% of millennialsbelieve there’s no need to save for retirement yet. But the real Reddit-savvy responses say otherwise—starting early harnesses compounding power. Even $20 a week set aside now could become thousands over time.
Sage Takeaway
Old money myths—from “no debt, no wealth” to “don’t invest yet”—are still being shared online. Yet they don’t match today’s economic climate or the tools young adults have available. Reddit communities have become real-time myth-busting hubs. By listening to modern advice instead of outdated beliefs, you can make smarter choices and let your savings—and peace of mind—grow.
The Saving Sage 