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

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FYI- Financial literacy is only taught in public school in 25 states.

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But at least they are learning men can have abortions too.

Tweeter

Pay the statement balance, not the total is necessary.

Based on my experiences at McDonald's I'm pleasantly surprised it's 13%.

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Parents job, do you really want the government teaching about financial literacy???

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Folks who frequent Payday Loans almost universally come from households (i.e., parents) that do the same.

Yes, I want schools to teach basic finances. It is a fundamental skill set and much more applicable for avg citizens than geometry or Algebra 2.

ETA: My 11 year old son just answered all of these correctly. I gave him 1 clue "most mortgages are 30 years." He guessed #5 was TRUE because the previous 4 were. When I asked if he knew what a 401(k) was he said "some kind of investment fund." teachable moment now he knows it's a retirement investment account where $ grows tax advantaged.

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Have you seen what they have done since 1913?

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Gotten wealthy?

Yeah mine come out at the end of the month. That one was false. I’m fine with the 401k question as not every 401k offers a Roth option. Most do now though

What kind of questions are these?

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

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

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Funds are taken from a debit card transaction immediately.

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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.

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

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

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401(k) contributions are not taxed until withdrawal.

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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.

To play devil’s advocate, 3&4 are pretty terrible questions.

I’d have said false for #3, I’ve never paid “credit card interest” for any loan, which I would consider borrowing money.

#4 has nothing to compare to, higher payments than what?

All that said, it’s shocking how little basic financial knowledge people possess.

I understand your point that people today are less knowledgeable about basic financial matters….. but most of these questions are terribly worded and written. For example, CC interest and Loan interest are quite different. And question number two is not true at all. Very few debits are immediately debited.