I’ve answered a couple of memes in the past, so I’m at the point where I’d like to try starting my own.
What early (i.e. before you were 10 years old) ideas did you have about money or finance that turned out to be totally (and amusingly) wrong? Please tag at least 3 people when you answer this meme, and link or traceback to http://www.moneysmartsblog.com/childish-misunderstandings-about-money/, or leave a comment with a link to your response at the same address (so we can collect all answers generated in one place). Feel free to cut and paste this paragraph into your response post.
To begin with, when I was a kid (like 5 or something) I thought that you had to buy jobs. I got the concept that there were jobs that were better then other jobs, but I thought you got them by paying more money for them (so if you wanted to be a doctor, you’d have to pay the hospital $100,000 but if you wanted to be a paperboy, you only had to pay the newspaper $500). I realized that you did get paid for a job, but I thought you needed to pay them first. I *think* I thought you’d be able to sell a job when you left too… So I thought people saved up, then bought a better job.
The funny thing is, in SOME ways this *is* a little bit correct (e.g. you have to pay for an expensive education to become a doctor or lawyer). In many ways families buy better jobs for their children. Dividend paying stocks, annuities, GICs and whatnot have always made sense to me, because that’s how I thought even employement worked (you paid a lump sum of money then collected the ongoing payments).
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