17 Of The Worst Financial Advice People Have Received - Some Of Them Are Downright Horrific

Bad financial advice can linger for years, especially when it comes from someone who sounds confident enough to be trusted. In this Reddit thread, people shared the worst money tips they have ever heard, and plenty of them were not just unhelpful, they were flat-out alarming.

The stories range from reckless spending and bad debt habits to advice that could wreck a future in a hurry. Reddit user u/Miserable-Tea-1836 asked, "What's the worst piece of financial advice somebody has given you?" and the responses came fast, with readers calling out everything from terrible shortcuts to genuinely dangerous suggestions.

Some of these takes are so bad, it is hard to believe anyone said them out loud. Read on.

1. If you don't pay your phone bills, there will be much bigger consequences

Your phone bill can end up in collections, which, in turn, will hurt your credit score. If your credit score is poor, you may have difficulty renting an apartment or opening utility accounts.

kor_hookmaster

2. Just because you cut them up or burn them doesn't mean that your balance suddenly disappears

Again, this will only hurt your credit score.

SalemScout

3. The 401(k) exists for a very good reason, and you should take advantage of it

If your job offers a 401(k) benefit, it's a good idea to contribute. Why?

First, the money you contribute will lower your taxable income, which can lead to a larger refund come tax day. Second, if your employer offers to match your contribution, you're essentially receiving free money.

TheRealOcsiban

That first one already sets the tone.

4. Unless you're the luckiest person in the world, this isn't the best way to increase your money

Generally, casino games are designed to favor the house. You can win, but you'll probably lose much more before that happens.

differentiatedpans

5. This isn't necessarily true

If you're in the U.S., this is not a good tip due to the country's "progressive" tax system.

With that system, the higher tax rate applies only to the portion of your income that exceeds your previous tax bracket if you move up to the next tax bracket.

champagne_of_beers

6. A degree doesn't always guarantee easy money

Going to school is definitely worthwhile, but when it comes to repaying those hefty student loans, it will depend on your career and goals. Instead, don't rely solely on loans.

Consult your school's financial aid office, apply for scholarships, and consider other ways to reduce the costs of education.

Dethstrok9

7. Savings accounts are always great to have

Having some money set aside for a rainy day provides a cushion when unexpected emergencies arise.

unidentifedjojo

Some of these comments are painfully relatable.

This debate is similar to someone deciding whether to lend to an irresponsible sibling during a family financial crisis.

8. This can jeopardize both your future and your child's future

While it's true that you can never be fully prepared for a child, there are many things you can do. This includes saving for their essentials, their college fund, and emergencies.

watashinomori

9. This is just taking away your basic rights

Negotiating should always be at the top of your list to avoid being low-balled.

However, you must be prepared to enter negotiations armed with your numbers, so check sites like Glassdoor to get an idea of the average salaries for your role.

summertimecinnamon

10. You're not going to be able to run from them forever

If you keep skipping out on bills, you're inviting collector calls and letters for the foreseeable future. That's why it's always wise to explore options like payment plans or extensions that are available.

chesterlola2014

11. Just because they're an option doesn't mean they're a great option

They may seem appealing at first, but they often come with hefty fees and no grace period, leading to sky-high interest rates in no time. They should only be used as a last resort for emergencies.

PrincipleHairy931

People really do hand out bad money advice with confidence.

12. You could end up paying more than the items are worth

Renting furniture might appear cheaper upfront, but with all the additional fees, it often adds up to a higher total cost than purchasing the item outright.

Tbables

13. When it comes to these kinds of purchases, you should never rush into them

New cars depreciate the moment you drive off the lot; that's why used cars are often better deals.

rleash

14. There are many flaws in this statement

If there's extra money left in your bank account, that doesn't mean you have to spend it all. Sure, you can treat yourself, but you can also invest some of it and put it to work.

plzeatslugsmalfoy

15. This will only increase the amount you have to pay

Living on credit cards without a reliable source of income will lead you into a debt spiral and damage your credit score.

Prannke

16. That bit about living only once includes your retirement years, okay?

Retirement may always seem far away, but saving early makes a significant difference.

Jonukas96

17. Or at least ensure you teach the person you're leaving it to be financially responsible

There are professionals for a reason, and they can teach you how to manage finances in ways you may have never been taught before.

whoisniko

Money is a fickle thing. One day you can have it, and the next day, you may have none.

That's why learning to be responsible with it is so important. Part of that learning process involves knowing which advice to follow and which to disregard.

Many people will have different opinions, but they aren't the ones who will face the consequences of their advice in your life.

Before you lend a dime, read how one person handled refusing to help a gambling-addicted friend pay rent.