Budgeting
What is a budget?
To separate income for certain purposes and expenses
Which is better, renting or buying?
Depends on the situation
Which card can you use to take money directly from your checking account?
Debit Card
What is a student loan?
money that is loaned to a student in order to for college or a career/ vocational school
One of the greatest secrets to saving is finding ways to make it ________.
Automatic
What is a down payment?
Cash put down on a house between 3-20%
How can you avoid paying a finance charge?
Pay more than the minimum.
What does it mean to be delinquent?
What is the 50/30/20 rule?
The basic rule to divide money up after tax income and allocate it to spend.
When renting you should...
Begin with the end in mind.
List some examples of information needed to complete a credit card application?
(A) Mothers maiden name (B) Social security number (C) Name of employer (D) Source of other income
What happens when you are delinquent or default on a student loan?
your credit rating will be damaged and it will be difficult to borrow money and obtain certain jobs
The 50/30/20 rule states 50% to ________, 30% to ________, and 20% to _________.
50% to needs. 30% to wants. 20% to long-term savings
What happens when you do not have a down payment?
higher monthly payment, smaller home, harder to find a loan, hard to qualify, PMI
What percentage of your credit limit should you use in order to increase your credit score?
Less than 30%
What are the 5 things you need to consider before borrowing money?
1. Will your education lead to a good paying career?
2. How much can I afford to borrow?
3. What school can I afford and is it the best value?
4. What grants or scholarships could I apply for?
5. How can I minimize the costs related with college?
Should the 50/30/20 rule be used for every budget?
No, each person and budget are different therefore the 50/30/20 rule will not always fot and it is not perfect.
43% of new homes in 2006 did not put money down, how many of those houses foreclosed?
50%
What is the total cost of borrowing with you card including interest and fees (lower the better).
Annual Percentage Rate (APR)
What is the average amount of student debt a person has when they graduate college?
$37,500