Budgeting & Saving
What is the 50/30/20 rule used for?
Budgeting your income (needs/wants/savings).
What’s the maximum recommended credit utilization ratio?
Below 30%.
What does diversification do for investors?
Reduces risk.
When did the U.S. first introduce federal income tax?
1861
What does FAFSA stand for?
Free Application for Federal Student Aid.
How much does the average U.S. household spend on housing?
33%.
What does FICO stand for?
Fair Isaac Corporation
What’s the average annual return of the S&P 500 since 1957?
10.5%.
What’s the difference between gross and net income?
Gross = before taxes; Net = after taxes.
How much can you get annually from a Pell Grant (2024)?
$7,395.
How many months of expenses should an emergency fund cover?
3–6 months.
What’s the average credit score in 2024?
717
How much would $1,000 invested in 2000 be worth today?
About $3,800.
What form summarizes your annual wages and taxes paid?
W-2.
When does the FAFSA open each year?
October 1.
What percentage of Americans have less than $500 saved?
40%
How much student loan debt does the average borrower owe?
$37,088
Who was the Roth IRA named after?
Senator William Roth.
What is the Federal Reserve’s annual inflation target?
2%.
Who pays interest on subsidized federal loans while in school?
The U.S. government.
What’s the Rule of 72 used to calculate?
The years it takes to double your money based on interest rate.
What is the average credit card APR in 2024?
21.5%
What’s the 2024 annual contribution limit for a Roth IRA?
500
What year did inflation peak at 14.8%?
1980
What’s the standard federal loan repayment period?
10 years.