10 Times Individuals Were Surprised by Financial Literacy!

Recently a man explained that he was astonished by how literate his coworkers were in tax-advantaged investing and general personal finance. He elaborated that these people work in money management in the company and have side businesses.

1. $5k Profit Several people didn’t seem to understand the concept of profit when selling a vehicle. One Redditor shared a story about his friend who purchased an automobile for $70k several years ago. Eventually, he paid the loan down to $25k, sold the car for $30k, and believed it was a “profit” of $5k.

2. Tax Write-Offs Don’t Work Like That Another explained his business partners once held a meeting where they proposed buying new luxury cars with company money to impress prospective clients. He dismissed the idea by expressing he thought it was terrible and didn’t need a new automobile.

Financial Literacy

3. Stop Contributing to the Company 401K Another person explained that their 70-year-old coworker confessed that he would stop contributing to their company 401k, as his money hadn’t grown in nearly four years. After further probing, they believe he never chose funds for his account. Instead, he thinks it’s in the general low-risk money market account. He noted their 401k is a self-directed plan.

4. Don’t Believe In a 401k One user explained that a coworker always complains about how she and her husband are broke. They have about 9k take-home monthly and “don’t believe in 401Ks.” She noted that because you can lose money, they believe 401ks are a scam.

5. Tithing for Blessing

Many users didn’t believe in the tithing for blessing rhetoric churches use and call it a “scam.” One volunteered as a nine-year-old child; her pastor said, “Everything you give, you will receive 10x over.”

6. The “Don’t Accept That Promotion” People Another common occurrence that surprises people is the lack of understanding of how tax brackets work. As a result, many people believe they shouldn’t accept promotions that will put them in different tax brackets and will make less money.

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