Budgeting Basics
•What is the term for a plan that tracks income and expenses?
A budget
•What does APR stand for?
Annual Percentage Rate
•What does 'compound interest' mean?
Interest on principal and accumulated interest
•What form do you use to file federal income taxes?
Form 1040
•What does FAFSA stand for?
Free Application for Federal Student Aid
•Name one fixed expense most people have monthly.
Rent or mortgage
•What is the minimum payment on a credit card?
The smallest amount to avoid penalties
•Which is safer: a savings account or stocks?
Savings account
•What is the deadline for filing taxes in the U.S.?
April 15
•Name one type of federal grant for students.
Pell Grant
•True or False: Entertainment is considered a 'need' in budgeting.
False
•What is credit utilization?
Ratio of credit used to credit available
•What does diversification do?
Reduces risk by spreading investments
•What does a W-2 form report?
Wages and tax withheld
•What is a subsidized loan?
Loan that does not accrue interest while in school
•What is discretionary spending?
Non-essential expenses
•What does a credit report show?
Credit history and accounts
•What is a CD?
Certificate of Deposit
•What do tax credits do?
Reduce tax owed dollar-for-dollar
•What are scholarships awarded based on?
Merit or need
•How many months of expenses should an emergency fund cover?
3-6 months
•Name two consequences of missing credit card payments.
Late fees and lower credit score
•What is risk tolerance?
Ability to endure investment losses
•What is a progressive tax system?
Higher income taxed at higher rates
•What does work-study provide?
Part-time jobs for students with financial need