Developing a Plan
_______ is simply a plan for coordinating income and expenses in a way that ensures you’re left with sufficient money to cover your expenses.
Budget
What are the two general categories for scholarships?
-Merritt based scholarship
-Need based scholarship
True or false? Credit cards should be used to obtain a long term loan.
What is APR?
Annual percentage rate
True or false? Not paying off your credit card on time can negatively affect your credit score.
True
What are 3 examples of basic needs?
Food, housing, transportation, tuition, textbooks, phone, or health related costs.
What are the three main sources of income for college students?
Loans, scholarships/grants, and part-time or full-time salaries
What are the four main ways to track your cash flow?
-Checking accounts
-Credit cards
-Charge cards
-Debit cards
Grace period
Debt that represents an investment in something that will appreciate is known as?
Good debt
Money spent on entertainment, enjoyment, or pleasure is considered?
Incidental or extra
What are three well known federally funded student loan programs
The Federal Perkins Loan, The Federal Subsidized Satfford, and The Federal Unsubsidized Stafford Loan
This card does not carry over any debt from one month to the next.
Charge card
True or false? Some credit card companies charge a higher interest rate for cash advances than credit card purchases.
True
What are the typical costs to open a checking account?
A deposit to open the account, a monthly service fee, and small fees for checks.
The three categories that personal expenses for college students fall into are?
Basic needs or essential necessities, incidentals or extras, and emergency expenses.
What is the big difference between federal loans and private loans?
Private loans have variable interest rates while federal loans have fixed interest rates
Why should you review your checking account on a regular basis?
To catch errors that you or the bank may have made.
Why should you not procrastinate paying back your credit on time?
Credit card companies make their profit by the interest they collect from cardholders who don’t pay their credit back on time.
When making a purchase, what two things should you consider?
-The initial cost
-The long term cost
What is an important first step towards money management?
Remaining aware of the distinction between essentials that need to be purchased and incidentals that are desirable to purchase.
What type of loan must be repaid in two months?
Emergency student loans
What is one disadvantage of some ATMs?
Some charge a separate fee.
What is the emergency student loans program?
It is an immediate interest free loan to help them cover short term expenses.
In what situation will banks pay you interest?
If you are able to maintain a high balance, some banks may pay you interest.