Credit Scores
What is the range of credit scores?
Hint: this is a number
300 - 850
This simple budgeting method involved dividing your income into different categories, often including needs, wants, and savings.
50/30/20 rule
True or False: All debt is bad
False: a mortgage and student loans are good debt they help build your financial future and diversify your type of debt
This type of retirement account is employer-sponsored, and contributions may be matched by your employer, making it a great way to save for retirement.
401(k)
This type of loan is often offered by the federal government to students based on financial need and typically has lower interest rates.
Federal Subsidized Loan
Best way to improve your credit score quickly?
Paying bills on time.
This budgeting approach gives every dollar a specific job, ensuring that your income minus expenses equals zero.
Zero-Based Budgeting
True or False: You should always avoid using credit cards if you want to build good credit.
FALSE: Avoiding credit cards entirely means you won’t build a credit history. Using credit cards responsibly — by paying on time and keeping balances low — actually helps improve your credit score (and earn rewards such as cash back or airline miles)
This type of savings account typically offers higher interest rates than a regular savings account, allowing your money to grow faster with minimal risk.
High - yield savings account
This loan is offered by the federal government, but the borrower is responsible for paying the interest during school and after graduation.
Federal Unsubsidized Loan
What is one of the three major companies that track your credit history?
Equifax
Experian
TransUnion
This method involves using the envelope system, where cash is divided into envelopes for specific spending categories, ensuring you don't overspend in any area.
Envelope budgeting system
True or False: If given the option to consolidate your students loans, it will help you pay off your loans quicker and for a cheaper rate.
FALSE: Here are things you should know before -
This is the key to building wealth over time, which involves setting specific, measurable, and achievable targets for your finances, like saving for a home or a child’s education
Financial goals
This is the process of postponing student loan payments due to factors like financial hardship or returning to school.
Deferment
True or False: Closing an old credit card you haven’t used in years is good for your credit score.
FALSE
Why?
Closing an old credit card can hurt your credit score because it shortens your credit history and can increase your credit utilization ratio (the percentage of credit you’re using compared to your total available credit). Both factors can lower your credit score. Keeping old accounts open, even unused, often helps maintain a stronger credit profile.
What is an app that can help you simplify your budget and track your spending
Hint: there are multiple
Rocket Money
YNAB (You Need A Budget)
Nerd Wallet
Good Budget
True or False: Credit cards will get me through financial crisis'
FALSE: Depending on credit cards to get you through a financial emergency is a great way to dig yourself into a deep pit of debt. Depending on your situation, you may not have the means to pay your cards on time, and with interest and late fees, you could be spending a lot more than you charged in the first place. Credit cards should not be relied on during a real financial emergency, such as a job loss, divorce, or serious illness. It’s best to proactively build an emergency fund consisting of three to six months’ worth of living expenses so you’re prepared for any unexpected events.
Experts often recommend following this general rule of thumb: save at least this percentage of your income for the future
20%
This is a common method used to repay student loans, allowing you to make monthly payments based on your income after graduation.
Income-Driven Repayment (IDR) Plan
What action can hurt your credit score if you do it too often?
Hard inquiries - such as applying for too many credit cards in a short time.
This strategy suggests paying yourself first, meaning you set aside money for savings or investments before you pay bills or buying anything.
pay yourself first method
True or False: It is ALWAYS worth saving even if I can only contribute a small amount
True: Any amount goes a long way in the long run
What is the recommended amount of money you should have in an emergency fund to cover unexpected expenses (ex. how many months)
3 months of living expenses
This program allows federal student loan borrowers to have their remaining debt forgiven after making 120 qualifying monthly payments while working in public service jobs.
Public Service Loan Forgiveness (PSLF)