MONEY LESSONS NOBODY TAUGHT US IN SCHOOL
Money Lessons Nobody Taught Us in School
By Edwin Ogie
Introduction — The Financial Education Gap
We spend years learning algebra, history dates, and grammatical rules — yet when it comes to money, most of us leave school guessing. How many of us learned how to build a budget that actually works, how to invest for the long term, or how to read a payslip and file a tax return? Not many.
This gap in financial education is not just inconvenient — it’s expensive. Poor money habits quietly compound into missed opportunities: interest piling up on unpaid debt, savings that never grow, and paychecks that disappear before the month ends. The good news: money is a skill, and like any skill it can be learned, practiced, and improved.
This guide is a practical, action-focused collection of money lessons schools rarely taught. It mixes simple explanations, real-life examples, and steps you can take today. Whether you’re a student, a young professional, or someone rebuilding their finances, these lessons will give you tools to build financial resilience, stop leaking money, and start growing wealth.
1. Understanding the Value of Money
Money is a tool — not the purpose of life. At its core, money is a medium of exchange: it represents the time, energy, and skill you trade for goods and services. But it’s also subject to forces you don’t control: inflation, interest rates, taxes, and economic cycles. ₦100 today will not buy the same in 10 years if prices rise.
Why this matters: If you treat money as a static number, you’ll make poor long-term choices. Understanding that money has time-value helps you prioritize saving and investing.
Action Step: Track every expense for 30 days. Use a notebook, a spreadsheet, or a simple app. At the end of the month categorize spending into needs, wants, and leaks (small recurring expenses that add up). Awareness is the first step to control.
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2. The Power of Budgeting — Freedom, Not Restriction
Budgeting gets a bad rap because people imagine strict diets and deprivation. A good budget, however, buys freedom: clarity about your money, less stress, and better choices.
Simple framework: The 50/30/20 rule — 50% for needs, 30% for wants, and 20% to savings/investment. Adapt this to your reality (if you’re paying off debt, savings might be 10% and debt - paydown 10%).
Tools: Google Sheets, Excel, or apps like Mint and YNAB (You Need A Budget). A spreadsheet is fine — it forces you to think.
Pro Tip: Treat savings as a non-negotiable bill. Automate transfers so you “pay yourself first.” When your savings moves before your spending, it becomes a habit, not an afterthought.
Action Step: Build a one-month budget, automate at least one saving transfer, and review weekly.
3. Compound Interest — Time Is Your Ally
Compound interest is the engine of long-term wealth. It means you earn returns on both your original money and the returns that money generates.
Example (precise): Invest ₦100,000 at a 10% annual return. After 20 years:
₦100,000 × (1.10^20) ≈ ₦672,750. That’s interest on interest doing the heavy lifting.
Why start early: The earlier you start, the fewer monthly contributions you need to reach the same goal. A small amount now often beats a larger amount later.
Action Step: Open a high-yield savings account or begin monthly contributions to a diversified fund. Even ₦5,000–₦10,000 monthly compounds significantly over time.
4. The Truth About Debt — Tool or Trap?
Debt is neutral. It’s how you use it that matters.
Good debt: Mortgages, business loans, or education loans that increase your earning potential or acquire appreciating assets.
Bad debt: High-interest credit cards, payday loans, and consumer financing that funds depreciating items.
Rule of thumb: If your interest rate is higher than your expected investment return, prioritize paying down that debt. For example, if a credit card charges 30% interest, investing at 10% doesn’t make sense until the card is paid off.
Action Step: List all debts with interest rates and balances. Attack the highest-rate debt first (debt avalanche) or the smallest balance first (debt snowball) — pick the method you’ll stick to.
5. Emergency Funds — Your Financial Safety Net
Unexpected events happen: illness, job loss, or urgent repairs. An emergency fund prevents a crisis from becoming a catastrophe.
Aim: 3–6 months of living expenses in a liquid savings account. If your job is unstable, aim for the higher end.
Keep it accessible: Don’t invest emergency money in volatile assets. Keep it in a savings account or money market where you can withdraw quickly.
Start small: If 3 months feels impossible, start with ₦50,000 and build up gradually.
Action Step: Open a separate savings account labeled “Emergency Fund” and automate a small weekly or monthly transfer until you reach your goal.
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6. Multiple Income Streams — Reduce Single-Paycheck Risk
Relying on one income source is risky. Supplementing your earnings increases security and speeds up wealth-building.
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Active income: Salary, freelance work, consulting.
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Passive income: Dividends, rental income, royalties, online products.
Ideas to start: Tutor a subject you know, freelance for small engineering or writing gigs, create an online course, or sell digital templates. Skills like coding, writing, and graphic design are especially monetizable.
Action Step: Identify one skill you can monetize within 90 days. Set a small goal: ₦10,000 extra per month within three months.
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7. Taxes — Learn the Basics (and Save Legally)
Taxes are one of the largest expenses most people face, and ignorance is costly.
Basics to know: Income tax brackets, VAT, allowable deductions, and record-keeping. Different countries (and states) have different rules — learn what applies to you.
Deductions matter: Small allowances like business expenses or educational deductions reduce taxable income and can save significant money.
Action Step: Organize receipts. Learn a few common deductions that apply to your situation. If possible, consult a tax professional—an up-front fee often repays itself.
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8. Investing Basics — Long-Term, Disciplined, Diversified
Investing is a habit, not a hack. It’s how ordinary people build extraordinary wealth over decades.
Core vehicles: Stocks (ownership), bonds (loans to governments/corporations), and index funds/ETFs (low-cost diversified baskets). Real estate and small businesses can also be powerful, but they require more hands-on work.
Avoid speculation: Day trading and “get rich quick” schemes are more likely to cost you money than build wealth.
Action Step: Start with small, consistent investments (e.g., ₦10,000/month) into a diversified index fund or ETF. Rebalance annually and avoid frequent trading.
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9. The Psychology of Money — Habits Beat Motivation
Money decisions are emotional. Recognizing psychological traps helps you avoid costly mistakes.
Common traps:
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Lifestyle inflation: When income rises, spending follows.
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Emotional spending: Shopping to feel better often leads to buyer’s remorse.
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Short-term thinking: Prioritizing instant pleasure over long-term gain.
Habit-building: Replace “I’ll treat myself” with “I’ll treat myself if I hit my savings target.” Small rituals — like weekly money reviews — build discipline.
Action Step: Implement a 24-hour rule for non-essential purchases: wait one day before buying to test whether you still want it.
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10. Negotiation Skills — Earn More, Spend Less
Negotiation isn’t a special power reserved for CEOs — it’s a practical skill that increases income and reduces costs.
Where to negotiate: Salary offers, phone plans, interest rates, rent, and large purchases. Do your research so you know the market rate.
Quick script for salary negotiation: “Thank you for the offer. Based on market data and my experience, I was expecting ₦X. Is there flexibility on the salary or benefits?”
Action Step: Prepare for your next paycheck review or major bill. Make a list of three negotiation points (salary, benefits, or fee reductions) and practice your ask.
11. Retirement Planning — Start Yesterday, But Start Today
Retirement planning isn’t just for the wealthy. The earlier you begin, the less you’ll need to save monthly.
Key ideas: Use tax-advantaged retirement accounts where available. Take full advantage of any employer matching — it’s free money. Let compounding do the heavy lifting.
Rule of thumb: Even small contributions now reduce the amount you need to save later thanks to compounding.
Action Step: If your employer offers a retirement plan or pension, enroll and contribute at least to the match. If not, open a personal retirement vehicle and automate contributions.
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12. Avoiding Lifestyle Creep — Keep Gains from Becoming Expenses
As income grows, many people unconsciously upgrade their lifestyle — and their expenses quietly catch up.
How to resist: Increase savings rate with each raise (e.g., save 50% of any increment). Make intentional upgrades — ask, “Will this purchase grow my happiness or my liabilities?”
Assets vs liabilities: Prioritize buys that either appreciate or produce income, rather than things that lose value immediately.
Action Step: For the next raise, automatically route a portion (e.g., 50%) into savings or investment — treat raises as fuel for wealth, not for instant upgrades.
13. Financial Literacy Is a Lifelong Journey
Money rules change: tax laws shift, new investment products appear, and markets move. Continuous learning keeps you ahead.
Start with the classics: Read approachable books like Rich Dad Poor Dad (concepts) and The Millionaire Next Door (habits). Follow reliable blogs and podcasts, but be skeptical of get-rich headlines.
Action Step: Dedicate one hour a week to financial learning — a podcast episode, an article, or a chapter in a finance book.
14. Teaching the Next Generation — Money Lessons That Stick
If schools won’t teach it, families and communities must.
Practical steps for kids: Give allowances linked to chores, teach saving by splitting allowance into spend/save/give jars, and introduce small investments (a mock stock portfolio or kid-friendly savings accounts).
Lead by example: Children learn more from what you do than what you say. Share age-appropriate money decisions and the reasons behind them.
Action Step: Create a simple “money lesson” plan for a child: allowance, a small savings challenge, and one discussion about what money can and cannot buy.
Conclusion — Take Control of Your Financial Future
Money is a powerful tool — and while school might not have taught these lessons, you can learn them now. Start small: track spending, automate saving, build an emergency fund, and begin investing consistently. Over time, smart habits compound into financial freedom.
These lessons aren’t about austerity — they’re about choice. Choose knowledge over guesswork. Choose discipline over impulse. Choose to give your future self options and peace of mind.
Next step: Pick one action from this guide and do it this week. Small steps repeated become big change.
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