Oct. 23: Worst Financial Advice Ever
October 23, 2025
Worst-ever bits of financial advice to watch out for
We occasionally, in this space, have listed some of the best bits of financial advice people have ever received.
That got us thinking – what are some of the worst bits of financial advice that have been doled out to people. In the interest of protecting us all from being steered the wrong way, Save with SPP is on the lookout for the worst of the worst, in terms of financial advice.
“Let the bank come get it,” is identified by the A Dime Saved blog is a top bad financial idea.
“When you finance something whether it’s a car or a home, you’re entering a legal agreement to pay for it. If money gets tight, you should be reaching out to your lender to negotiate, not ghosting them. Walking away and letting the bank `come get it’ might sound like a bold move, but it comes with long-term damage to your credit score that could haunt you for years,” the blog explains.
Another one on the blog’s list is “take a loan to pay off a loan.”
“Unless you’re consolidating debt at a lower interest rate, using one loan to cover another just digs a deeper hole. It delays the inevitable and compounds your financial stress. It’s not a solution — it’s a snowball,” the blog warns.
A third one is “put everything on a credit card for points.”
“Chasing credit card rewards without discipline is a trap. The points might look great, but the interest you’ll pay if you don’t clear your balance each month will wipe out every perk. If you’re not careful, your spending will spiral,” the blog explains.
The SoFi Learn blog suggests that “you don’t have to worry about retirement until later” is a particularly unsound bit of advice.
“Friends, family, and acquaintances may tell you to enjoy your youth and not to worry about your old age until later,” the blog explains. “However, the sooner you start to save, the more money you’ll have later on thanks to compounding interest, which builds earnings on your investment and on that investment’s interest. Putting off saving until midlife can put you behind the eightball, causing you stress and anxiety as you try to make up for lost time,” the blog adds.
A second idea in the blog is that “follow your passions” may not be the best financial advice you’ll get. “Although it sounds nice, following your passions professionally rarely pays the bills. And it can also put you into a very competitive and crowded field, if your passion is one of the common ones; say, acting, singing, cooking, or creating art,” the blog warns.
In a Global News article, a number of bad ideas are captured. Common bad financial mistakes, the article notes, include “using a credit card advance to fund a down payment, using student loan money to travel, moving too often and any investment seminar promoting a ‘sure-fire way to beat the market.’”
We can add a few more from our own travels. Thinking it’s OK to only make the minimum payment on a credit card. Taking a vacation “on the card,” without saving anything for it in advance or to pay down the debt afterwards. Unwittingly paying super high fees, front-end and back-end loads on investments. Not really knowing how much you are spending versus how much you are taking in.
Avoid these potential pitfalls, live within your means, and save for the long term. If you have a pension plan through work, be sure you are signed up and contributing to the max – don’t decide you’d rather spend that money versus setting it aside for your post-work future.
If you don’t have a workplace plan, the Saskatchewan Pension Plan may be just what you are looking for in terms of a savings partner. SPP is open to any Canadian with registered retirement savings plan room.
You decide how much you want to contribute – and you can also transfer in any amount from your other non-locked-in RRSPs. You provide the money, and SPP’s investment wing does the rest, growing your money in our low-cost, professionally managed pooled fund.
At retirement, those savings will turn into income to live on. Options include a monthly, lifetime annuity payment, or the more flexible Variable Benefit.
Check out SPP today!
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Written by Martin Biefer
Martin Biefer is Senior Pension Writer at Avery & Kerr Communications in Nepean, Ontario. A veteran reporter, editor and pension communicator, he’s now a freelancer. Interests include golf, line dancing and classic rock, and playing guitar. Got a story idea? Let Martin know via LinkedIn.
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