Part 1: Personal Finance 101 — Banking, Credit Score, Savings

  1. Banking, Credit Score, Savings
  2. Investing
  3. Debt, Budgeting, Giving

Banking

Checking and savings accounts

Credit Score

Debit cards and credit cards

Savings

Emergency fund

  • The less stable your income is, the more you may need in a dedicated emergency fund
  • The less stable your household is (i.e. one income vs. two), the more you may need to save
  • The less stable your health is, the more you may need to save

Saving for large expenses

  • $100k downpayment (20% down on a $500k house), if you save $20k a year, in 5 years you will have enough
  • The average wedding in the US costs $30k. So if you want to get married at 30, and are currently 25, and you and your SO will split the cost, you need to save $3k annually for the next 5 years
  • Let’s say you want to go to Europe next year and the average 2-week vacation is $4k. You’ll need to save $334 every month for the next 12 months to afford that
  • If you think you’ll need $900 for Christmas gifts, then you’ll need to save $75 a month

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Mary Gao

Mary Gao

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