Budgeting
Which of the following should you set aside money for FIRST?
Paying bills, day to day expenses, or big debt expenses that you have coming up soon?
Paying bills
If you deposit money at a financial institution, such as a bank, they’ll often reward you by adding a small amount of extra money called __________ on a regular schedule.
Interest
What is an ideal debt load?
For consumers, it is 15-20% of your gross monthly income and for business it can be 35-40% of gross monthly income before taxes.
What is the service that automatically transfers money from a linked account that you select, such as a savings or credit account, when you don’t have enough money in your checking account to pay your transactions?
Overdraft Protection
Most institutions that take deposits are members of a _______ system.
Insurance in case banks go bankrupt.
Deposit Insurance
How much should you set aside in case of emergencies and for the future?
As a university student, you should aim to set aside about 20% of your monthly income for this.
What is the purpose of checks and debit cards?
You can pay through these mediums and not have to carry cash around.
What are two main ideas to keep in mind while paying back student loans?
Make lump sum payments and increase this value over time.
You get paid today from your employer. Which of these options is the best: taking the cheque to deposit it through an ATM or asking your employer to transfer the money directly to your account through Direct Deposit?
Direct Deposit because it is much safer and helps keep track of your transactions.
What is CVV?
“Card Verification Value”; usually on the back side of your credit card.
Never share this with anyone or write it in any text messages, emails etc.
What is a spending plan?
A plan that lists out your income and expenses based on your estimates and what you actually ended up spending.
A certificate of deposit (CD) is which type of account?
Savings account
What should be the main idea of your repayment strategy?
Paying off debts with the highest interest rate
What does “building good credit score” mean?
It means using your credit card to purchase big items and paying back on time builds this score.
Your credit score is extremely important since it shows how you manage and spend your money.
What general rules should you follow when signing a lease for an apartment?
Don't sign anything before reading.
If you don't understand something, ask the landlord or any trusted attorney.
Ensure you know what the penalty for losing/breaking something is and the notice you need to give before vacating.