The 50/30/20 Rule says you should put 50% of your take-home pay toward your needs, 30% toward your wants, and 20% toward your savings or investments.

It provides a clear framework for budgeting that helps people find a balance between their immediate needs, their lifestyle preferences, and both short-term and long term goals.

An emergency fund should be enough to cover 3-6 months of your essential living expenses.

An emergency savings fund is a crucial safety net that individuals and households should have in place. It's designed to provide relief in unexpected situations such as medical emergencies, job loss, car repairs, or any other unforeseen expenses.

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Compound interest is the interest earned on both the original principal and any previously earned interest. Simple interest is only applied to the amount of your original principal. Because of this, compound interest always results in a higher total amount than simple interest--because you're earning interest on top of interest!

The Rule of 72 is a simplified formula that calculates how long it will take for an investment to double in value, based on its rate of return.

As an example, if your account earns 7 percent interest per year, divide 72 by 7 to estimate the number of years it will take for your money to double. In this case, it will take approximately 10 years. (72/7 = 10.29)

It is recommended that you use under 30% of the total credit you have available.

It is generally recommended to keep your credit card utilization under 30%. For example, if you have a credit limit of $10,000, you should try to keep your balance below $3,000. A high credit utilization ratio can signal to lenders that you may be a risky borrower.

Payment history (a.k.a. whether you pay your bills on time) is the largest contributing factor to your credit score.

35% of your credit score is determined by your payment history, so it's critical to make sure you don't miss payments or make late payments.

APR includes both the interest rate and any additional fees associated with the credit card.

The APR on a credit card is the cost of borrowing money using the credit card. It includes the interest rate on outstanding balances and any other fees associated with the card, such as the annual fee.

Investing to achieve a greater return than the credit card interest rate is not a good debt repayment strategy, since investing carries risks and the return is uncertain.

More practical ways to tackle credit card debt might be to pay off the largest balances first, pay off the credit card with the highest APR first, secure a loan with a lower interest rate than the credit card APR, or use a debt management program.

A premium is a fee you pay every month to be covered by insurance. A deductible is the out-of-pocket costs you must cover before your insurance kicks in.

Premiums and deductibles are related: The higher the premium, the lower the deductible. The lower the premium, the higher the deductible. It is up to each individual to choose which one they are comfortable paying more for based on their level of risk.

An HYSA (High Yield Savings Account) typically has a higher interest rate than a regular savings account.

HYSAs have great benefits, but there may also be limitations associated with these types of accounts. Some might not allow you to make as many withdrawals as regular savings accounts, and they may not have a brick-and-mortar location associated with the account.

A borrower will pay private mortgage insurance when they take out a conventional mortgage loan with a down payment of less than 20%.

Private mortgage insurance (PMI) is a type of mortgage insurance borrowers are typically required to buy when they take out a conventional mortgage loan with a down payment of less than 20% of the home's purchase price. PMI protects the lender - not the borrower - if the borrower stops making payments on their loan.

Stocks are partial ownership in a corporation. Bonds are loans to a company or the government.

The primary difference between stocks and bonds is that stocks represent ownership in a company, while bonds are like a loan that a company or the government takes out from you - the lender. While stocks are often thought to be risky and bonds are thought to be safe, they could be equally risky, depending on the type of stock and the type of bond you purchase.

An IRA is a tax-deferred retirement savings account.

There are two main types of IRAs. A Roth IRA allows you to contribute taxed dollars to the account; when you withdraw the money during retirement, you'll do so tax-free. A traditional IRA allows you to contribute pre-tax dollars without being taxed on its growth until you withdraw the money when you retire, so your contributions are tax-deferred.

Experts recommend you should have 1x your salary saved for retirement by the time you turn 30.

In addition, experts recommend that you have 3x your salary saved by age 40, 6x your salary saved by age 50, and 8x your salary saved by age 60. Don't forget--compound interest is here to help. Start early!

The amount of taxes people pay is primarily determined by their gross income.

The total amount of income a person earns can push them into different tax brackets, affecting how much they pay in taxes.