Word bank: guideline · high-interest · payday · raise

1. Starter fund → match → debt → full fund → invest → goals.
2. Automate on .
3. Save part of every .
4. It's a — adjust to your life.

1. You have a credit card balance at 25% APR and $1,000 in an emergency fund.

   1. Following the common order, what's usually next after capturing any employer match?

   • A. Invest in individual stocks
   • B. Pay off the 25% APR credit card
   • C. Buy a new car
   • D. Save for a vacation

2. 2. Setting up automatic transfers on payday makes saving more likely to happen.

   True/False

3. You get a $300-a-month raise.

   3. What's a smart way to avoid lifestyle creep?

   • A. Spend all of it immediately
   • B. Raise your savings by part of the raise — say $150 a month — before adjusting spending
   • C. Stop saving
   • D. Upgrade your car

1. 1. You get a raise of $200 a month and decide to save half of it. How much more do you save in a year?

2. 2. Why does automating savings on payday work so well?

1. 1. Which step in the order would be hardest for you? Why?

2. 2. Why do you think lifestyle creep is so common?