Saving for Retirement
This type of account allows for tax free growth
This type of federal loan does not require you to pay or accrue interest while you are in school.
What is a Federal Subsidized Loan
This type of repayment plan calculates your payment on how much you owe, your interest rate, and fixed repayment period without accounting for annual income
What is a fixed repayment plan
Type of credit card reward with a non-fixed value at redemption
What are points
What is 9000 dollars
This is a common type of retirement account, usually coming with a match from your employer
What is a 401K?
This form allows you to apply for Federal Student Aid
What is the FAFSA
This type of repayment plan plans your monthly payment amount on how much money you make and your family size
What is income driven repayment
Type of bank account with a high interest rate, usually offered by online banks
Marginal additional cost of Neziah's rent if the rent increases from 750 to 900 dollars a month in July
This is the amount of money you could have if you invested 100 dollars at 20 years old with a 7% annual return and retirement at 65 years old. You do not contribute more.
What is 2100.25 Dollars
This federal loan accrues interest while you are in school, but still has a lower interest rate than many private loans
What is a Federal Subsidized Loan
The six month period post graduation and before federal loan repayment begins
What is the grace period
Neziah's annual cashback if he spends 500 dollars a month and gets 1.5% cashback on all purchases. He gets no credit card points or other rewards
90 dollars
Emily's 20% down payment on a house that cost 300,000 dollars
What is 60,000 dollars
This is the amount you could have if you invested 1000 dollars at 20 years old with a 7% annual yield and retire at 65 years old. You do not invest more.
2102.45 dollars
The value of a 10,000 dollar federal subsidized loan with 4% annual interest if unpaid for 10 years post graduation.
What is 14,802.44 dollars
Emily's monthly repayment amount if she wants to pay off a 5000 dollar federal subsidized loan with 3% interest within five years of graduation.
96.61 dollars per month
Amount of additional savings Emily can get if she gets 1% cashback on general purchases, 5% cashback on gas, and 5% cashback on travel rather than 1% cashback on all purchases. She spends 1000 dollars this month. Her credit card app states that 25% was spent on travel and 10% was spent on gas.
What is 14 dollars
The amount of time it takes Emily to save enough for a down payment of 20% on a 500,000 dollar house if she makes 70,000 dollars per year and saves 20% of her income each month.
What is 7.14 years
This is the amount you could have if you invest 100 dollars at 40 years old with a 7% rate of return and retire at 65 years old. You do not contribute more.
What is 542.74 dollars
The value of a 9,000 dollar unsubsidized federal loan if unpaid for 10 years post graduation
What is 15,585.09 dollars
Emily's monthly payment if she wants to pay off a 8,000 dollar federal subsidized loan with a 4.5% interest rate within 8 years of graduation
118.51 dollars per month
The difference in earned cashback in four years of college between Neziah and Emily if Neziah only uses a debit card and Emily uses a credit card with 1.5% cash back on general purchases, 5% cash back on travel, and 5% cashback on dining. They both spend 1000 dollars a month and have similar spending habits, spending 10% on travel and 15% on dining. Emily pays her credit card on time every month and does not carry a balance.
What is 1,140 dollars
Neziah's minimum monthly percentage of income saved if he's 22, makes 80,000 per year, and wants to make a down payment of 8% (as a first time home buyer) on a house that is 450,000 dollars at the age of 30.
What is 5.6%