Financial Aid
You do not have to pay back Pell Grant money.
True / False
True
The amount of take home pay is called your __________ pay.
Net pay
Gross pay is your income before taxes, witholdings, etc.
You are given a choice to use your card as a credit or debit; which one protects your purchase in the event of fraud?
Credit
What is an impulse purchase?
Unplanned decision to buy something.
When you stop going to college or graduate. You must start paying back your student loans in _____ months.
6 months
Which of these is considered a fixed expense?
Medical Bills
Rent/House Payment
Gas
Rent/House Payment
How does a person start building good credit?
Having bills in your name.
Making payments on time.
Opening a credit card (if you can make payments on time).
What is an asset?
Resources that produce cash flow or bring added benefit to the individual/company.
When can you start filling out your FAFSA for the next school year?
October
You have just been offered a starting position for $15/hr. You will be working 40hrs/week, which means you will be taking home $600/week.
True / False
False
It will be less than that after taxes are taken out.
A financial advisor would advise you to pay off which of the following?
1) Target $450 balance $125 payment
2) Best Buy $1,200 balance $100 payment
3) Auto Loan $9,500 balance $375 payment
They would advise you to pay off your smallest debt first and then use that payment and use toward your next smallest debt.
What is an IRA?
Individual Retirement Account
(w/tax-free growth)
If you qualify for financial aid, you will get the same amount each year.
True / False
False: It depends on income, assets, need, etc.
Budgets should reflect your:
Short term goals
Long term goals
Both
Both
Short term: vacations, home improvements
Long term: paying off mortgage, vehicle updates
To get a credit report, you must have at least one account that has been opened for _______ months.
6
What is collateral?
Something pledged as security for repayment of a loan.
What is the difference between a subsidized and unsubsidized student loan?
Subsidized: Government pays interest while you are in school.
Unsubsidized: Interest is accruing while you are in school.
How many months of salary should you save for emergencies?
Financial experts say 3-6 months.
How long does negative information last on a credit report?
7 years
What are the financial literacy basics?
Budgeting
Borrowing
Saving
Repayment Strategies