Budgeting/Saving
The three main elements of a budget are income, saving/investing, and this third element...
Expenses
When writing a financial plan, you usually separate goals into three types: short-term, medium-term, and ___.
Long-Term
This is a tool that allows you to borrow money up to a set limit, with interest if you don’t pay in full each month
Credit card
This kind of financial aid does not need to be paid back (e.g. merit, need-based)
Grant or
Scholarship
This is when someone impersonates you to open accounts or make purchases in your name.
Identity Theft
Warren Buffett said: ‘Do not save what is left after spending; instead spend what is left after ___.’
Saving
This simple equation summarizes your financial health: assets minus liabilities
Net Worth
This is the extra amount you pay on top of borrowed money — usually expressed as a percentage
Interest
This is the interest rate or fees charged on student loans over time; it increases the total amount owed
Loan interest
This is the practice of viewing your credit report to check for errors or fraudulent accounts in your name
Credit monitoring
This kind of fund is meant to cover unplanned costs like car repairs or medical bills
Emergency Fund
Before you can make a plan, you need to know your starting point. This involves listing your income, expenses, assets, and debts. What is this?
Current financial situation
If you miss making the minimum payment or pay late, this gets added to your account and can hurt your credit score
Late Fee or
Penalty Interest
When deciding which loan to take, you should compare this — it’s the cost of borrowing per year, including interest and fees
Annual Percentage Rate (APR)
True or false: Poor financial habits cause too much of your money to go into other people’s pockets
True
To keep your budget balanced, this must equal your income minus saving (or vice versa)
Expenses
A financial plan isn’t useful unless you regularly review it and make adjustments. This step is sometimes called the ‘feedback loop'
Monitoring and Revising
When debt increases faster than payments reduce it, especially with high-interest rates, you can end up with this situation
Debt spiral or
Debt trap
This is the total cost to attend a school, including tuition, fees, room, board, and other expenses
Cost of attendance
If someone calls pretending to be your bank and asks for your password, they may be attempting this type of scam
Phishing
This approach tracks how money flows in and out over time and helps you adjust spending accordingly
Cash Flow Tracking
Suppose you graduate with $20,000 in loans and want to buy a car in two years. Deciding which to pay off first and how much to save each month is an example of this part of the planning process.
Prioritizing Financial Goals
This is one of the best practices: only charge what you can afford to pay off in full each month (to avoid paying interest)
Paying the full balance monthly
This is the federal student loan plan that allows you to make payments based on your income
Income driven repayment plan
This free service from the U.S. government lets you check your credit report from all three bureaus once per year