Busey Bank | Tackling Financial Misconceptions

Misconceptions about personal finance can pop up just about anywhere—from family, friends, online resources and social media. These often-mistaken beliefs can quietly influence our decisions, leading to limited options and increased financial stress.

We’ve tackled some of the more common misconceptions about finances below, and ways in which you can take action.

“Renting means I’m throwing money away”

One of the most persistent financial myths, homeownership is often portrayed as the ultimate marker of success and stability. While renting is often described as a waste of money, leaving you with nothing to show for it. The reality, however, is far more nuanced.

Renting can make financial sense depending on your lifestyle, goals and location. When you rent, you’re paying for flexibility, predictability and freedom from many hidden costs of homeownership. In certain cases, rent also covers maintenance, repairs, property taxes and insurance.

As a homeowner, you’ll be facing a monthly mortgage payment, as well as upkeep, unexpected repairs and fluctuating property values. If you’re someone who moves frequently for work or still building your savings, renting may be a better option. Money spent on rent isn’t “wasted”—it’s exchanged for housing and stability, just like any other essential expense.

While homeownership can be a powerful wealth-building tool, it’s not a one-size-fits-all situation. Instead, the decision to buy or rent should be one aligned with your current circumstances.

“I’m not wealthy enough to invest”

While many think investing is reserved for the wealthy, it has become more accessible than ever. Regularly investing small sums over time can lead to meaningful growth thanks to compound interest.

Waiting until you feel “rich enough” to invest often means missing out on years of potential growth. Starting small allows you to learn, build confidence and develop healthy financial habits without the pressure of making perfect decisions. Wealth is more often the result of steady investing—not a prerequisite for it.

“All debt is bad”

Mismanaged debt—such as high-interest credit card balances or loans taken without a clear plan—can quickly spiral into long-term financial strain. However, labeling all debt as harmful oversimplifies the issue.

There’s a meaningful difference between high-interest consumer debt and strategic or “productive” debt. Student loans, business loans or mortgages can sometimes enable opportunities that wouldn’t otherwise be possible—education, income growth or long-term housing stability.

It’s important to understand the cost and purpose of the debt. For example, is it helping you build something over time? Or is it short-term funding that will be a struggle to repay? When used carefully with a clear plan for repayment, debt can be a tool used to help prepare for the future.

“Budgeting means cutting out things I love”

The idea of budgeting can conjure images of strict rules and saying no to everything enjoyable—resulting in many people avoiding it altogether. In practice, a good budget doesn’t eliminate the things you enjoy. Instead, it helps make it more realistic. Budgeting is simply a plan for your money, based on your priorities. If traveling, dining out or continuing your hobbies matters to you, they should be incorporated into your budget, even if on a more limited basis.

With a budget, you can spend intentionally because you’ll have a better idea of your essentials, savings and future goals. Instead of being restrictive, budgeting gives your money direction and reduces the stress of wondering whether you can afford something.

“I’m not good at managing my money”

Financial management skills don’t come naturally to everyone and often need to be learned. Most people were never formally taught how to budget, save, invest or manage credit.

Busey is pleased to offer our complimentary service, Financial Pathways, an educational platform which provides an engaging learning experience through a series of interactive modules designed to deliver actionable financial education. Centered around a robust content library, the personalized experience includes over 250 educational experiences and tools. To learn more, visit busey.com/FinancialPathways.

Improving your finances doesn’t require perfection. Making small changes—whether it’s tracking your spending, automating your savings or simply asking questions—can lead to meaningful progress.

Rewriting the financial narrative

There’s no one-size-fits-all financial path. Renting or owning, investing early or gradually, carrying some debt or none at all—these choices depend on your goals, timeline and comfort level.

Some simple steps to put into practice include:

• Reframe “rent vs. buy” using your real priorities. For example, how long do you plan to stay in the location? Do you have savings for upfront and emergency expenditures?
• Start investing small, if you’re financially able. For example, if your employer offers a retirement plan like a 401(k), contribute what you can—even if it’s the minimum amount to earn any offered company matches. Small savings add up over time.
• Examine your debt and evaluate it strategically. For example, prioritize paying down high-interest rate debt first and avoid new debt that doesn’t align with your long-term goals.
• Create a “values-based” budget that doesn’t cut all the things you enjoy. Instead, try incorporating things you value—such as dining out—into your budget. To ensure you’re hitting your goals, set aside time to review it on a weekly or monthly basis. You can also “set it and forget it” by setting up automated savings wherever possible. For example, schedule an automatic transfer of $50 each paycheck from your checking to savings account.
• Replace personal judgment about your money management process with skill-building. Choose one habit to build at a time—tracking expenses, reading a personal finance article or setting up a savings goal. Progress compounds, just like investments do.

Financial health is about making informed choices that fit your goals and your personal circumstances. The experienced team of advisors at Busey Wealth Management can help create a financial roadmap that works for you. Learn more about our services at busey.com/wealth-management.

This is not intended to provide legal, tax or accounting advice. Any statement contained in this communication concerning U.S. tax matters is not intended or written to be used, and cannot be used, for the purpose of avoiding penalties imposed on the relevant taxpayer. Clients should obtain their own independent tax advice based on their particular circumstances.

This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities.

This presentation is for general information purposes only. It does not take into account the particular investment objectives, restrictions, tax and financial situation or other needs of any specific client.