Credit Fundamentals
What is Credit?
When you borrow money from a lender (Bank Or credit card company).
During what stage of your career are your earnings likely at their highest?
What does a net price calculator do?
Helps estimate the amount of money you might get in scholarships/grants.
Whats a transaction that hasn't been processed yet by a financial institution?
A pending transaction.
Whats the Stock exchange?
place where investments are bought and sold.
What is a cosigner for a loan?
Someone who will promise to pay a loan if the borrower doesn't.
Why is it so important to start saving for retirement as early as possible?
Compound Interest (The earlier you start to save the more time the money has to grow).
Interest?
percentage of the loan that you pay on top of what you have borrowed.
What does overdrawn mean?
A dividend is?
A Payment you receive from a company's profit when you own stock shares in that company.
Why would you need a cosigner?
If you cant qualify for a loan by yourself you can have a cosign to help.
What should you start doing as soon as you start working?
Save for retirement.
What category are loan payments in a 50-30-20?
Needs.
What does an account balance show?
Amount of money that you have in an account.
Whats one fixed income investment?
Bonds.
What is a Credit Report?
A history of how you pay back loans and credit cards.
What is "investment risk tolerance"?
It is how much money you are able to accept losing as an investor.
What is a loan forgiveness program?
Program that reduces/wipes away the amount of your loan if eligible.
Account used for daily expenses would be a?
Checkings account.
What is a time horizon?
How long you plan to keep your investments.
What does it mean when you freeze your credit?
No one can open a credit card in your name when you freeze it.
What is Financial abuse?
It is when one partner uses money to control another partner.
What does the FAFSA help with?
It helps you access need-based federal aid and federal loans
Where can you see a record of your transactions?
In your Account balance.
Someone who offers financial and investment guidance.