Thinking you're bad at finance is a 'self-fulfilling prophecy,' a money expert says. She suggests 3 ways to change that.

Core Viewpoint - People often struggle with money due to a negative mindset, which can become a self-fulfilling prophecy, according to financial educator Abi Foster [1][7] Group 1: Changing Mindset - The language used when discussing money significantly impacts spending habits, with young people often adopting negative financial vocabularies from their families, leading to a fear of money [2] - Individuals can start by familiarizing themselves with trading apps to understand how investing works before making any financial commitments [3] Group 2: Savings and Investments - Keeping all savings in a checking account is detrimental, as it effectively transfers money to banks; a savings account should only hold enough to cover three months of living expenses, with a maximum of twelve [4] - Investing in stocks related to personal interests, such as Formula One stocks like Ferrari, is recommended, along with considering long-term investments in index funds like the S&P 500 [5] Group 3: Retirement Planning - It is crucial to actively plan for retirement by increasing contributions to retirement accounts such as 401(k), IRA, or pension plans, as minimal contributions can result in significant losses in compound interest by retirement age [6]