re: Only 13% of workers under 50, could answer 4 of 5 financial literacy questions correctly

What kind of questions are these?

quote:

---

You should pay off credit cards each month to avoid additional charges.

---

Not necessarily true if it’s If you’ve got some 0% APR deal, and you’ve got a year to pay it off.

quote:

---

Funds are taken from a debit card transaction immediately.

---

Doesn’t this vary depending on the processor, whether it’s run a credit or debit, and how the bank handles transaction are transaction, such as how long it is considered pending? It can even vary on the type of transaction as gas stations often do a “test transaction,” which will eventually be removed, and the actual amount often takes time to when show up as pending.

quote:

---

A 15-year mortgages require higher monthly payments that reduces total interest paid.

---

Reduces the total interest paid compared to what? A 30-year mortgage? But although uncommon there are 10 year mortgages.

quote:

---

401(k) contributions are not taxed until withdrawal.

---

That’s true for a pre-tax 401(k), like an IRA, but not true for a post-tax Roth 401(k), like a Roth IRA. A Roth 401(k) and a Roth IRA are still a type of 401(k) and IRA.