4 Money Myths From the 1990s That Are Costing You Today
Written by
Emily Fowler
Edited by
Jenna Klaverweiden
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Financial advice that worked decades ago may not hold up today. The economy has shifted, wages haven’t kept pace with inflation and the costs of essentials like housing, education and healthcare have skyrocketed.
Following money “rules” that lots of people believed in during the 1990s, for example, can lead to missed opportunities and poor financial decisions. Here are four ’90s money myths that could be costing you today.
Myth: College Is the Only Path to Financial Success
While a degree can still be a ticket to a financially comfortable life, rising tuition costs and an oversaturated job market put extra pressure on graduates. Many people end up drowning in student debt while working jobs that don’t necessarily require a degree.
In fact, according to Pew research from 2024, 49% of people said it isn’t as important to have a four-year college degree than it was 20 years ago in terms of getting a well-paying job.
Skilled trades and jobs in fields like technology and healthcare often offer strong salaries without a traditional four-year education. According to Indeed, electricians, coders, commercial pilots and real estate agents are some jobs you can get without a college degree.
Certifications, apprenticeships and networking can be just as valuable as a diploma — sometimes more so.
Myth: Buying a Home Is Always Better Than Renting
You may have heard that buying a home is better than renting. However, that isn’t always true. Renting can sometimes be a better choice than buying a home, according to Clever Girl Finance, depending on an individual’s financial goals and lifestyle.
There are, of course, pros and cons of both. Homeownership comes with a high initial investment for things like a down payment and closing costs, for example, plus ongoing maintenance costs. Renting, on the other hand, offers more flexibility and lower upfront expenses, though renters won’t be building equity for their future.
Myth: All Debt Is Bad
Debt is often seen in a negative light, but not all of it is bad. High-interest credit card balances that aren’t properly managed can spiral out of control, but other types of debt can be strategic.
A mortgage is most people’s key to owning a home and building equity, for example, and a business loan could be used to grow a profitable company. In fact, according to Lendio, getting financing was the most important thing for a business’ growth for 68% of small business owners.
Avoiding debt entirely can mean missing out on opportunities to build wealth.
Myth: Playing It Safe Is the Best Investment Strategy
Some people raised on 1990s fears of market crashes (thanks to economic downturns in the early part of the decade) might still avoid investing, leaving their money in low-interest savings accounts that don’t keep up with inflation.
Leading financial services businesses like Morgan Stanley recommend that investors seek maximum portfolio diversification to offer better risk-adjusted returns rather than trying to play it too safe.
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