Credit
T/F Using a credit card is like using a check
False, using a credit card is like using a loan
T/F Using a debit card is like using a check
True!
What is budgeting?
Tracking the way you spend
What is a student loan?
Money borrowed to pay for education expenses
What is a smart move to save money on food?
Packing your own meal and snacks
What does ATM stand for?
Automated Teller Machine
T/F You should make your PIN number your birthday or something easy to remember
False! This a bad idea because, you have a very common PIN number that identity thieves can much easily get a hold of
What is the difference between a need and a want?
A need is a necessity
A want is something you can live without
What is the difference between a subsidized student loan and an unsubsidized student loan
Subsidized loan, the government covers your interest while you are in school and during deferment.
Unsubsidized loan, you are responsible for the interest from the moment the loan is disbursed
What is a true budget-killer?
Eating out
What activities are summarized on your credit report?
Student loans and credit card purchases.
Does using your debit card effect your credit score?
No it does not.
List the 3 of the most important things on your budget?
Things like: Rent / Mortgage, transportation, groceries, insurance....Not limited but were you able to list a few.
What is a student loan default?
Not making loan payments for 270 days.
What is an unforseen expense?
Parking tickets, Car break down, family sickness.
What is the best way to pay off a credit card?
On time and the full amount.
What happens if you use your debit card when you might not have enough money?
The card will decline or you will be given an overdraft fee.
What is a reactive budget?
A reactive budget is when you spend first, and reflect on your purchases to see how you can save more money.
What does FAFSA stand for?
Free Application for Federal Student Aid
When does it make sense to break into your emergency fund?
For a true emergency, like getting laid off. (In a perfect world you should have 3 months of salary in your emergency fund)
When you demonstrate creditworthy behavior, you:
Can borrow at higher interest rates,
or
Are more likely to receive credit in the future
Should you use a debit card online?
You shouldn't, it is much easier for people to steal your personal info when shopping online with a debit card, rather than a credit card
What is the most important part of budgeting?
Following through and being consistent with your budget.
What term refers to the time between you graduate and your first payment on a student loan?
Grace Period (Typically 6 months)
List at least 2 types of saving
Emergency, Regular savings, Retirement,