New-Grad Reality
You make $80k with a 6% employer 401(k) match. You contribute 0%. What are you actually losing each year?
$4,800 of free money (6% of $80k).
A credit card advertises “0% APR.” What detail actually matters most?
The length of the intro period and the post-promo APR.
You pay your credit card in full every month. Does usage still help your score?
Yes — on-time payments build credit.
Pay off a 3% student loan or invest? What usually wins long-term?
Investing, because expected returns exceed 3%.
What is lifestyle creep?
Spending increases as income increases.
Your offer letter says $90k base + $10k bonus. Which number should your rent budget be based on — and why?
Base salary; bonuses are not guaranteed and often taxed higher.
“Unlimited PTO” sounds great — what’s the financial downside?
People take less time off and unused PTO isn’t paid out.
You close your oldest credit card because you don’t use it. What happens?
Your score may drop due to reduced credit history and utilization.
Your company offers RSUs. What’s one reason to sell immediately?
Avoid over-exposure to one company’s risk.
Why do people feel richer after a raise but save less?
Mental accounting and instant gratification.
You get a 10% raise but save the same dollar amount as before. What financial mistake are you making?
Lifestyle creep — savings rate isn’t increasing with income.
A lease says “rent increases based on market rate.” Why is this risky?
Increases are uncapped and unpredictable.
You carry a balance but always pay on time. Is your score affected?
Yes — high utilization hurts your score.
Emergency fund or investing first — what’s the rule of thumb?
Emergency fund first (3–6 months of expenses).
Why do people avoid selling losing stocks?
Loss aversion.
You switch jobs for a higher salary but worse benefits. Which hidden cost often offsets the raise?
Health insurance premiums, HSA loss, lower 401(k) match, or PTO differences.
Your job offers stock options with a 4-year vesting schedule. What’s the catch if you leave early?
You forfeit unvested shares.
You apply for three credit cards in one month. Why is this risky?
Multiple hard inquiries lower your score.
Why is day trading riskier than long-term investing?
Market timing risk, volatility, and emotional decision-making.
Why do “Buy Now, Pay Later” plans feel painless but cost more?
Payments feel smaller and delayed, reducing spending friction.
You delay investing for 5 years in your early 20s. Why is this worse than delaying later in life?
You lose the most powerful years of compound growth.
A loan has a low monthly payment but long term. What’s the real cost you should care about?
Total interest paid over time.
You pay off a loan completely. Why might your score dip temporarily?
Reduced credit mix or fewer active accounts.
Why can “safe” investments still be risky?
Inflation risk erodes purchasing power.
Why do budgets fail even when they’re accurate?
They don’t account for behavior, emotions, or irregular expenses.