- - I Asked ChatGPT for the Worst Things You Can Do With Your Money — Here Are Its 10 Answers

John CsiszarDecember 18, 2025 at 4:00 AM

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ChatGPT, the popular artificial intelligence (AI) bot, sometimes takes criticism for providing erroneous calculations or generic information. But when it comes to outlining the worst things you can do with your money, the AI is spot-on.

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I asked ChatGPT this very question to see what advice it might give someone making this common search query, and the answers it gave surprised me. They read just like the recommendations a professional financial advisor might give clients who are beginning their financial lives. In other words, this information, while perhaps basic for advanced investors, is the type of knowledge that should be part of a financial literacy course for all Americans.

Here’s what ChatGPT had to say about the worst things you can do with your money.

1. Let It Sit Idle (Too Long)

ChatGPT rightly points out that if you’re not earning an investment return on your money, its purchasing power can fall dramatically. As the AI bot says, “Over 10 years, 3% inflation can shrink your money’s value by nearly 30%.”

To avoid this, you’ll want to keep large sums invested, rather than in low- or no-interest checking accounts or, even worse, under your mattress.

2. Chase ‘Hot’ Trends Without Understanding Them

One of the easiest ways to lose money in all markets is to jump into “hot” areas just because their prices are going up. If you don’t know what you’re doing, it’s all but inevitable that you’ll be one of the ones left holding the bag when the party ends.

As ChatGPT puts it, you should “avoid jumping into crypto, meme stocks, NFTs or AI play just because they’re trendy….Hype cycles create bubbles. You often buy high and panic-sell low, compounding losses.”

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3. Carry High-Interest Credit Card Debt

This is a financial killer that should be common knowledge; unfortunately, Americans still carry credit card balances to the tune of $1.18 trillion, according to the Federal Reserve Bank of New York. The worst part isn’t even the going-into-debt part — it’s “paying 20%-plus interest while making minimum payments,” as ChatGPT says. “Compound interest works against you. A $5,000 balance can cost you thousands more over time — for nothing gained.”

4. Buy More House Than You Can Afford

Homes in the U.S. are at near-record levels of unaffordability, and this is pushing some buyers to pay more than they can afford. ChatGPT points out that this is a bad strategy because “it locks up cash, increases risk in downturns and may leave you ‘house poor‘ and unable to save or invest.”

As the bot rightfully points out, if you tie up all your money in a house you can’t really afford, you risk going into debt if you no longer have the cash flow to pay your bills. You also divert money away from your long-term savings and investment plans.

5. Treat the Stock Market Like a Casino

Although the daily ups and downs of the stock market can make it feel like gambling, it’s actually not — unless you treat it that way by day trading. While long-term investors tend to fare very well, day traders, especially those without experience, are setting themselves up for failure.

ChatGPT notes that “the odds are heavily against retail traders. Most lose money. Investing is not gambling — but it becomes gambling when you don’t have a plan.”

6. Ignore Emergency Savings

Walk into a financial advisor’s office and the first thing they are likely to recommend to you is to build an emergency fund, ideally with enough to cover three to six months of expenses. If you live paycheck to paycheck and don’t have a safety cushion, ChatGPT says “unexpected expenses force you into debt. Even a few hundred dollars in savings can prevent financial spirals.”

7. Neglect Retirement Contributions

Retirement plans offer some of the best advantages when it comes to long-term savings. Most 401(k) plans offer some type of company match, in which your employer will dump “free money” into your account on your behalf if you also contribute yourself.

Those plans, along with IRAs, allow you to grow your money on a tax-deferred basis until you withdraw it, in addition to getting tax benefits from your contributions themselves. Without contributing to a retirement plan, “you lose decades of compounding and may have to work longer — or retire poorer than expected,” according to ChatGPT.

8. Fall for Scams or Too-Good-To-Be-True ‘Opportunities’

Many investors are impatient and want huge returns as soon as possible, and this makes them susceptible to investment scams, such as investing in unverified deals, “guaranteed” returns or sending money to strangers, according to ChatGPT.

“If someone promises easy money,” the AI bot says, “it’s usually a con. Once lost, it’s rarely recovered.”

9. Finance Depreciating Assets Poorly

To get ahead in the financial world, you’ll want to invest as much as you can in appreciating assets, as opposed to depreciating assets like cars. But the truth is that many Americans need a car, and most can’t afford to pay cash for one.

The trick, according to ChatGPT, is to avoid “buying a new car with a long-term loan and little down payment. Cars lose value fast. You might owe more than it’s worth (negative equity) before you’re even halfway done paying.”

10. Make Major Financial Moves out of Emotion

One of the biggest financial mistakes, particularly when the market is making big moves, is to make major moves out of emotion.

“Selling in a panic, buying out of fear of missing out (FOMO) or making big changes after a breakup, job loss or market crash” are all mistakes, according to ChatGPT. The reason? “Emotional decisions often lead to regret. Money requires a cool head and a long view.”

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This article originally appeared on GOBankingRates.com: I Asked ChatGPT for the Worst Things You Can Do With Your Money — Here Are Its 10 Answers

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Source: “AOL Money”