College Budgeting
What is a budget?
Spending plan
What is FAFSA used for?
Applying for financial aid
What does a credit score measure?
Creditworthiness
Why is saving money important?
For emergencies and goals
What is a salary?
Fixed pay
What percentage of income should be allocated to savings in college?
At least 20%
What happens if you don’t repay student loans?
You go into debt
What is the safest way to use a credit card?
Pay it off every month
What is the best way to track your spending?
Budgeting app/plan
What is an employer-sponsored retirement plan?
401(k)
What percentage of income should be allocated to wants?
At least 30%
What is the difference between grants and loans?
Grants = free money
Loans = must be repaid
What happens to your credit score if you miss a credit card payment?
Your credit score drops
How can students save money on food?
Cook at home, use meal plans
- other answers are possible
What is the best way to prepare for job expenses after graduation?
Save money early
What should an emergency fund cover?
Unexpected expenses
What is student loan interest?
Extra money you owe on loans
What is a credit limit?
The maximum you can borrow on a card
How can you make extra money in college?
Part-time job
- other answers are possible
What is the difference between a salary and hourly wage?
Fixed vs. hourly
What is the 50/30/20 rule?
A: 50% needs, 30% wants, 20% savings
What does loan forgiveness mean?
Some or all of your loan is erased
How does having good credit help you?
Lower interest rates on loans
What is an easy way to start saving money?
Set up automatic transfers
Why should new grads take advantage of 401(k)?
Free retirement money