True or False. Getting the “free money" of a 401(k) match should not come before paying off credit card debt.
Social Studies · Middle School · Wed Jan 13 2021
Answered on
False.
In most cases, it's recommended to take advantage of the "free money" offered by a 401(k) match before paying off credit card debt. This is because the immediate return on your investment from a 401(k) match is often much higher than the interest rates on credit card debt. For example, if your employer offers a 100% match on a certain percentage of your contributions, that's essentially a 100% return on your investment immediately, which is almost impossible to beat with any other financial strategy.