Bank Accounts
They typically offer higher interest rates than standard savings accounts.
What are online-only accounts or high-yield savings accounts?
This three digit number affects whether you qualify for a loan.
What is credit score?
Save $1,000 in a starter emergency fund.
What is step 1?
The 50/30/20 rule says to put this percent of your paycheck toward things you "want" but might not need.
30%
This is the term given to describe the interest rate charged on a credit card, including other fees.
What is Annual Percentage Rate (APR)
The two key series of numbers that appear at the bottom of a check.
What are routing and account numbers?
This is the amount initially borrowed.
What is principal?
Invest 15% of your income into a retirement account.
What is Step 4?
Paying yourself first means doing this.
What is setting money aside for savings before spending money on wants and needs?
This is the only responsible way to use credit cards.
What is paying it off in full every single month?
This is a great interest rate today in a general savings account.
What is 3-5%?
Banks must hold on hand a certain amount of deposits known as this term.
What is reserve requirement?
Save 3-6 months of expenses in an emergency fund.
This percent of Americans live paycheck to paycheck in 2025.
What is 67%?
Points if you said 60-70%.
This is the second biggest factor that determines your credit score.
What is credit utilization (aka "amounts owed")?
It's like a hybrid savings and checking account.
What is money market account?
Under a mortgage, a home is collateral, which makes it this type of loan.
What is a secured loan?
These three steps can be done simultaneously.
What are steps 4, 5, and 6?
Over the long term, the stock market returns around this percent each year, which is what you could reasonably expect to earn.
What is 9-11%?
These are the three credit reporting agencies.
What are Experian, TransUnion, and Equifax?
Because they last for a set period of time before maturing, some people put their money in more than one of these at staggered intervals.
What are certificates of deposit?
Loans with these are unpredictable and can result in higher payments over time.
What is a variable interest rate?
Mike has $600 in the bank, $3,000 in debt, and just got a $500 bonus from work. What should he do with the bonus?
Put $400 toward his $1,000 starter emergency fund; put the remaining $100 toward the debt; begin Baby Step 2 aggressively.
This percent of Americans would cover a $400 emergency with cash.
What is 63%?
Points if you said between 60-70%.
This is the formula used to calculate how much interest is charged in a given month.
What is APR/365 x 30 days?
What is Average Daily Balance x DPR x 30 days?