Chapters 1-5
This type of financial institution does not have physical locations, does not accept cash deposits and may not have all the services you need.
Online Banking
Taking money out of your account is called a ___________________.
Withdrawal
When applying for scholarships, it is wise to use a general letter for each application.
False - be specific!
Of the three categories that cause financial problems, young people tend to spend the most in this one.
Food
True or False
The longer it takes you to pay something off, the more expensive it becomes.
True
What is the typical grace period for direct subsidized or unsubsidized loans?
6 months
Debit Card
Federal student loans are generally cheaper than _________ loans.
Private
50% of your income should be dedicated to what category? (50/30/20 Rule)
Needs
True / False
Lenders prefer that you have a lower credit utilization ratio.
True
36%
The following are disadvantages to this type of financial institution:
Higher Fees
Worse Interest Rates
Less Personal
Traditional Banks
Money given to you by the federal government or a private lender that you need to pay back with interest.
Student Loan
Frugal spending includes what concepts
Using what you have
Spending money on higher quality stuff
Prioritizing Value
Valuing your time
What is the recommended percentage for your credit utilization ratio?
30%
Rent $1200, Car $250, Insurance $200
Loan $175, Cell Phone $80, Credit Card $150
Total Gross Income $3800
What is the DTI ratio for this example?
54%
Generally this type of fee is $30 per transaction.
Overdraft Protection
What does the word subsidized mean?
A higher Debt-to-Income generally indicates financial health and a lower risk to lenders.
False
Name 3 benefits of having a good credit score.
Better interest rates
Lower insurance premiums
Increased opportunities for securing loans and credit
Higher Credit Limits
Housing and Utilities
Name three types of lines of credit that you might open in your lifetime.
Mortgage
Student Loans
Auto Loans
Credit Card
If Bill deposits $6000 into a 6 month CD at a rate of 5.5%, what will it be worth at maturity?
$6165.00
I = 6000 x .055 x .5
These types of loans are made by the government with terms and conditions set by the law and include benefits such as fixed interest rates and income driven repayment plans.
Federal Student Loans
The money you have left over after paying taxes and all essential living expenses.
Discretionary Income
What is the credit utilization ratio in the problem below?
Credit Limit on Card A - $7000
Credit Limit on Card B - $2500
Debit on Card A - $320
Debit on Card B - $1850
23%