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

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What bank do you have where this is true? My debit transactions take 2-3 days.

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It may not show on your statement or app, but those funds were withdrawn immediately. Also, unlike a credit card, a chargeback or dispute takes time to get the funds back into your account.

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Honest question. I don’t use debit cards, so I had assumed that it was necessary to have adequate funds to cover a purchase.

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That is the general premise, otherwise you are playing the “float” just like when we wrote checks, hoping your deposit will get to the bank before the check is posted.

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2)Funds are taken from a debit card transaction immediately.



What bank do you have where this is true? My debit transactions take 2-3 days.

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All debit card transactions (not debit transactions... this is referencing the card) put an immediate hold on funds.

Most retailers immediately run the balance at checkout against the checking account (i.e. grocery stores or online retailers).

Some retailers "marry" the charged amount at night and there may be a delay from when the "hold" amount becomes an actual withdrawal of funds (i.e. restaurant or barber where tips may be added. Gas stations hold the funds before the fillup but process the funds at the completion).

A lot of confusion about debit transactions occur because EFT (electronic funds transfer) is a slow process. This is a bulk request of funds to a bank that is run daily. The request includes every bank customer doing business with that retailer on that business day. This could be thousands or tens of thousands of requests to one bank (say Wells Fargo or Bank of America) from one retailer (say Progressive or Rocket Mortgage). It isnt uncommon for 2 to 3 business days needed to process a daily request (throw in a holiday weekend and that could be almost 5 calendar days).

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

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Try and immerse yourself among a group of average people. Walmart is probably the most popular store in America. Go there. McDonalds is probably the most popular restaurant. Go there too. Look around. Do you really want to rely on them teaching their kids about financial literacy?

Although there are probably many teachers among the crowd there, at least they have a script to teach from.

Yeah this is dumb.

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Very poorly worded questions. I can poke a hole in every one of them.

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I agree that the questions could/should have been worded better. But I also have to agree with the other poster who said that in order to take issue with the questions, one would have to be, well… financially literate.

But even frequent posters on this board will sometimes say some “curious” things. The fellow a couple of years ago who believed that it was a good idea to have his HELOC as his emergency fund. I pointed out that a HELOC can be modified or canceled by the lending institution. He said, no it couldn’t… because it was his money. M’kay then…

Or the fellow who keeps saying that even if you pay off your mortgage, you don’t really own your house because there will always be property taxes. With or without a mortgage, you own the house. Whether it’s a mortgage or a (potential) tax lien, debt against a property doesn’t preclude equity in a property.

So even on a money oriented board, where I suspect financial literacy is, on average, much higher than in the general population, you do often see some “curious” things here too.

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95% of high school graduates cant remember the right words among loose/lose, their, they're, there, etc and you think they can remember financial education? credit card companies will always find ways to rip off citizens no matter how much financial literacy you give them.

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You’re not suggesting that we drop English and grammar classes, are you? They’ve already stopped teaching cursive writing in our local schools. My girlfriend’s (know-it-all) 20 year old grandson can’t properly sign his name!

I’d say that it’ll be more commonplace for most younger people to be faced with financial decisions than grammar decisions. So I’m very much in favor of some sort of personal finance courses being taught in public (and private) schools. I say drop some of the “I’m OK… you’re OK… we’re OK” fluff courses and focus on truly valuable subjects.

But with that said, being the kid of a school teacher, misuse of those words has always bothered me (using your for you’re causes my head to catch fire),

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Parents job, do you really want the government teaching about financial literacy??? Have you seen what they have done since 1913?

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You could say the same about every single subject taught. Many children are not being taught anything by parents, regardless of subject, but especially finances. Those are the children that need it the most and would only learn from schools. We are talking minimal competency, not advanced economic theory. It is crazy that kids graduate high school and have never been taught about a checking account, debit card or credit card interest rates in 2022. The system needs to evolve in this area.