Financial Aid 101
What does FAFSA stand for?
What is Free Application for Federal Student Aid?
What is the difference between a checking account and a savings account?
What is a checking account is for daily spending and transactions; a savings account is for storing money and earning interest?
What is a budget?
What is a plan for how to spend and save your money based on income and expenses?
What is credit?
What is borrowed money that you agree to pay back later, often with interest?
Why is saving money important?
What is it prepares you for emergencies and future goals?
How many times do you have to fill out FAFSA during college?
What is you must fill it out each year?
What is direct deposit?
What is an electronic transfer of your paycheck (or other recurring payments) directly into your bank account?
Name one fixed expense and one variable expense.
Answers may vary:
Fixed: Rent, phone bill. Variable: Groceries, gas, entertainment.
What is a credit score and why does it matter?
What is a number that shows how likely you are to repay debt; it affects your ability to get loans and credit cards.
What is an emergency fund?
What is money saved to cover unexpected expenses like car repairs or medical bills?
What is the difference between a grant and a loan?
What is a grant is free money you don’t repay; a loan must be paid back?
What is the purpose of overdraft protection?
What is it helps prevent declined transactions when you don’t have enough money in your account?
Why is it important to track your spending?
What is it helps you stay on budget, avoid overspending, and save money?
What’s one way to build good credit as a student?
What is pay bills/credit card on time, keep balances low, use a secured credit card?
What is the difference between a short-term and a long-term savings goal? Give an example of each.
What is A short-term savings goal is something you plan to pay for soon (within a year), like textbooks or a spring break trip.
A long-term savings goal takes longer to reach (over a year), like buying a car or saving for graduation.
What’s the difference between need-based aid and merit-based aid?
What is need-based aid is awarded based on your financial situation, and merit-based aid is awarded for achievements like grades or talents?
Name two services you can do with online banking.
Answers may vary
What is Check balances, transfer money, pay bills, deposit checks, etc?
Define “impulse buying” and give one strategy to avoid it.
What is unplanned purchases driven by emotion; avoid by waiting 24 hours before you decide?
What’s the difference between a subsidized and unsubsidized loan?
What is subsidized loans don’t accrue interest while in school; unsubsidized loans do?
What is compound interest?
What is interest earned on both the original money and the interest already earned?
What is Satisfactory Academic Progress (SAP) and why is it important?
What is SAP is the GPA and credit completion standard you must meet to keep financial aid?
Why is it risky to use public Wi-Fi when logging into your online banking account?
What is public Wi-Fi can be unsafe and may allow hackers to steal your login info or personal data?
What are three steps you can take today to improve your spending habits?
Answers may vary
What is the risk of missing a credit card or loan payment?
What is late fees, damage to credit score, higher interest rates in the future?
What does the SMART acronym stand for in goal setting, and what is one example of a SMART savings goal?
What is SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound.
Example answers may vary