High-Yield Savings Accounts
This type of savings account offers higher interest rates than traditional savings accounts.
What is a high-yield savings account?
This type of retirement account allows for tax-free withdrawals in retirement.
What is a Roth IRA?
This is the first step in creating a budget.
What is tracking your income and expenses?
This is the fee charged when you spend more than your credit limit.
What is an over-limit fee?
If you earn $2,000 per month and you want to follow the 50/30/20 rule, how much should you allocate for your "needs" (50%)?
What is $1,000?
This term refers to the annual percentage rate earned on a deposit, accounting for compounding interest.
What is the APY (Annual Percentage Yield)?
The 50/30/20 rule suggests allocating 50% of your income to this.
What are needs?
What is the APR (Annual Percentage Rate)?
This is the interest rate charged on outstanding credit card balances.
If your monthly income is $2,500 and you want to save 20% for savings and investments, how much should you save?
What is $500?
What is the FDIC stand for and what do they do?
Federal Deposit Insurance Corporation. This federal agency insures your money in most U.S. banks, up to $250,000 per depositor.
The maximum annual contribution limit for a Roth IRA in 2025 for individuals under 50.
What is $7,000?
This is the range of a good credit score.
What is 670–739?
Your monthly expenses are $800 for rent, $300 for groceries, and $100 for transportation. How much money is left for discretionary spending, if your income is $2,200?
What is $1,000? (($2,200 - $800 - $300 - $100 = $1,000))
Give 3 reasons on why it matters for college students?
Roth IRA contributions are made with this type of income
What is after-tax income?
This term refers to money set aside for unexpected expenses.
What is an emergency fund?
Preferably, the only types of purchases that should be financed (i.e loans) are these.
What are large purchases (such as a house or car)?
Your monthly income is $3,500. If you follow the 50/30/20 rule, how much should you allocate to "wants" (30%)?
What is $1,050? (3,500 x 0.30 = $1,050)
The current average national interest rate for traditional savings accounts, as of 2025.
What is 0.41%?
This is the minimum age at which you can begin withdrawing earnings from a Roth IRA without penalties.
What is 59½?
This is the recommended percentage of your income to save or invest.
What is 20%?
This is the term for the fee you pay if you fail to make at least the minimum payment on your credit card by the due date.
What is a late payment fee?
You want to buy a new iPhone 16 for $1,199. For the first two months, you save $50 each month. After that, you save $100 a month. How many months will it take you to save for the phone?
What is 14 months?
(For the first 2 months: 50 × 2 = $100.
After that, $1,199 - $100 = $1,099 remaining.
Then, $1,099 ÷ 100 = 10.99, which rounds up to 11 months.
Total months = 2 (initial savings) + 11 = 14 months)