These Old Money Tips Just Don’t Work Anymore in 2025

Grandparents often love sharing their tried-and-true financial advice with younger generations. But not all the guidance that worked in Grandma’s day is still relevant. From outdated investment strategies to misguided credit card fears, here are several old-school money tips that no longer pay off.​

While avoiding credit cards may have been solid advice decades ago, today’s credit card rewards programs (ranging from cash-back offers to travel points) can provide significant financial perks. Yes, credit cards can be risky for people prone to debt, but responsible spenders are missing out on valuable benefits by sticking strictly to cash.

Savings bonds, particularly EE bonds, were once praised for doubling their value within a predictable timeframe. Today, however, EE bonds offer only a modest 2.6% fixed interest rate. Modern investors should explore other financial vehicles to grow their money more effectively over the long term.

College tuition has soared astronomically since 2002. For instance, average tuition at public four-year institutions has risen by 141%, and at private institutions by 181% over the last 20 years. A degree can lead to better job opportunities, but the financial burden of student loans often overshadows potential earnings. Carefully weigh the cost of higher education and develop a clear repayment strategy before enrolling.

Owning a home was traditionally considered a secure investment, but the 2008 housing crash challenged this belief. Tax deductions for mortgage interest aren’t as advantageous as they once were, especially after the 2017 tax reforms, which reduced the deductible mortgage interest limit to $750,000. Homeownership can still be beneficial, but it’s wise to evaluate other financial priorities before committing to a mortgage.

The classic retirement strategy of withdrawing 4% annually was popular when interest rates were higher and life expectancy shorter. Today, retirees should abandon this outdated formula and instead adopt personalized financial plans reflecting current economic conditions and longevity.

This old rule suggested subtracting your age from 100 to determine the percentage of stocks in your investment portfolio. While designed to reduce risk over time, modern financial landscapes may require more aggressive strategies to achieve retirement goals, particularly given longer lifespans and changing market dynamics.

Stashing cash around the house might seem reassuring, but physical money is vulnerable to theft, fire, and flooding. A safer option is storing savings in FDIC-insured bank accounts, ensuring protection up to $250,000 per depositor.

Historically, buying property was considered superior to renting. But renting can offer valuable flexibility, lower maintenance costs, and an opportunity to diversify investments. Depending on your circumstances, renting might actually be a smarter financial move.​.

In the past, local banks were seen as more reliable or community-focused. While smaller banks can offer personalized service and lower fees, they might lack comprehensive financial products available at larger institutions. Choose banks based on your specific financial needs rather than location alone.​

Student loans often carry relatively low interest rates and tax deductions, leading many to label them “good debt.” Yet there’s no guarantee your degree will secure high-paying employment, and heavy student loan burdens can severely limit financial freedom after graduation.​

Grandma might have trusted gold as a secure asset against inflation. However, gold prices fluctuate widely and can experience speculative bubbles similar to stocks. Relying heavily on gold might not provide the stability Grandma envisioned.