COLLEGE PLANNING
What is the average time it takes a person to pay off their student loan debt?
20 Years
Insurance helps you transfer the ___________ from your bank account to the insurance company.
Risk
Your rent/mortgage payment should total no more than ______ % of you total take-home pay.
25
A security that represents part ownership of a company is called a(n)_________.
Stock
What is the "Rule of 72"?
A formula that calculates how long it'll take for an investment to double in value, based on its rate of return
True or False: Since federal funding is often awarded on a first-come, first-served basis, you'll be more likely to get financial help by filling out your FAFSA as soon as possible.
TRUE
Life insurance guarantees your loved ones get a certain amount of money when you___________.
Pass away
When you're ready to buy a house, the best option is a ______________-rate mortgage.
15-year fixed
When you invest in a mutual fund, you are contributing to a pool of money that will be_____________
Invested in a mix of stocks, bonds and money market accounts.
One way to keep track of money that comes and goes is by using a ________
The typical student loan payment is between $200 and $300 per __________
Month
TRUE or FALSE: Renter's insurance will cover you and your belongings if there is ever fire, theft, or vandalism.
True
The ONLY time its okay to borrow money if you can't pay 100% in cash is ___________.
Buying a home
Diversification reduces your _______ by using a mix of investment types in your portfolio.
Risk
A plan for HOW you spend your money is called a _________.
Budget
FAFSA is the federal application required to_________.
Receive financial aid
Comprehensive coverage car insurance pays for loss or damage to your car caused by___________.
Anything other than a collision.
What type of interest rate is locked in and won't change for the life of the loan?
Fixed-rate
_________ is the process of figuring out how much money you'll need in retirement and creating a plan to get there.
Retirement Planning
What does S.M.A.R.T stand for and why is it used?
Specific
Measurable
Attainable
Relevant
Time bound
S.M.A.R.T. is used to set goals.
To stay extra focused on your debt-free degree goal, you will need to avoid___________.
Student Loans
Through the Affordable Care Act, you can stay on your parents' health insurance until you are the age of ____?
26 years old
What is your mortgage principle?
The amount borrowed (that must be repaid) to purchase a home.
Roth IRA, 401(k), 403(b), 457 and Simplified Employee Pension are all examples of __________.
Retirement plans
Name the 5 Foundations of Personal Finance according to Ramsey:
1. Save $500 for emergency fund
2. Get out and stay out of debt
3. Pay cash for your car
4. Pay cash for college
5. Build wealth and give