In a world overflowing with financial influencers, algorithm-curated content, and get-rich-quick advice, separating fact from fiction has never been harder—or more essential. From viral TikToks about crypto “hacks” to long-held beliefs about debt and recessions, money myths are shaping the way Americans earn, save, and invest—often with damaging results.

And while April is designated as National Financial Literacy Month, experts say these last few days should serve as more than just a reminder to review your budget. They should be a wake-up call to rethink the financial “truths” we’ve taken for granted.

“People aren’t just making mistakes—they’re acting on misinformation,” says George Kailas, CEO of the AI-powered investing insights platform Prospero.ai. “Whether it’s misunderstanding how inflation works or thinking all debt is bad, these myths are actively hurting people’s financial futures.”

Here are six of the most persistent misconceptions Kailas says we need to leave behind—before they cost us even more.

Myth 1: Inflation is just the result of companies raising prices.

When prices spike at the grocery store or gas pump, it’s easy to blame corporate greed. But inflation is more complex—and often misunderstood.

“Inflation isn’t just about companies hiking prices for fun,” says Kailas. “It’s driven by factors like excessive money supply, supply chain disruptions, and yes, corporate pricing power.” He also points to the Federal Reserve’s interest rate decisions as a critical lever in controlling inflation—something most Americans don’t consider when watching prices rise.

Myth 2: Recessions and market crashes go hand in hand.

This belief often drives investors to make rash decisions when economic headlines turn grim. But the idea that a recession always triggers a market meltdown is simply false.

“The stock market is not the economy,” Kailas says. “Some recessions barely touch the market, while some market crashes happen outside of recessions.” In fact, Wall Street often begins its recovery before the broader economy does, making recession fears a poor reason to jump ship.

Myth 3: The market is rigged against the little guy.

It’s a narrative that resonates—especially when headlines highlight insider trading or billionaires getting richer during downturns. But retail investors aren’t powerless.

“With the right strategy—diversification, long-term investing, and risk management—retail investors can absolutely build wealth,” Kailas emphasizes. He adds that tools like Prospero.ai can now give regular investors institution-level insights, helping them cut through hype and make data-backed choices.

Myth 4: All debt is bad.

This one has been passed down like financial folklore—but not all debt is created equal.

“High-interest credit card debt is definitely harmful,” says Kailas, “but low-interest debt like mortgages or student loans can actually be smart financial tools.” The key is to understand the cost of borrowing and its long-term value, rather than avoiding all debt out of fear.

Myth 5: When the market drops, sell to avoid further losses.

This kind of thinking can sabotage even the most promising portfolio. Selling during a downturn locks in losses—and often means missing the rebound.

“Unless your investments are fundamentally flawed, downturns are usually a time to hold—or even buy more if your research supports it,” Kailas says. Panic-selling rarely ends well. Savvy investors hedge or rebalance—not flee.

Myth 6: AI will make human investors obsolete.

Generative AI is transforming every corner of the financial world, but don’t hand over the reins just yet.

“AI can enhance decision-making, but smart investing still requires human insight, discipline, and strategy,” Kailas warns. “You always have to ask yourself: Do I have an edge? Why?” Access to AI doesn’t replace the need for financial literacy—it just raises the bar for thoughtful judgment.

As April draws to a close, there’s still time to rethink what you think you know about money. Financial literacy doesn’t mean becoming an economist. It means understanding the basic forces that shape your financial life—and learning how to move through them with confidence.

“Financial literacy is about making confident, informed decisions that help you live a better life,” Kailas says. And those decisions start by replacing financial fiction with real, usable knowledge.

With misinformation more viral than ever, the most important investment you make this month may be in unlearning the myths that have been holding you back. Because the truth? It’s not how much you make—it’s what you do with it that defines your future.