Saving and Budgeting
Harv Ardseuxs makes $100 dollars a month after taxes. He has to pay $50 dollars each month for his bills, rent, and other needs. However, the Uggs store is having a sale. Should he buy a pair of Uggs for $70? Why or why not?
No. If he buys the $70 pair of Uggs, he no longer has enough money to pay his rent and bills.
Good loan or bad loan: You take out a "specially-discounted" car loan from the dealer to get a brand new Tesla. This car would cost you your entire year's salary if you did not take out this loan.
BAD LOAN! Even if it's "discounted," it's still a bad loan. Be careful of car dealers trying this trick with you--even if it's discounted, your car will lose a ton of value as soon as you drive it off of the lot. Therefore, by the time you pay off the car the car will be worth much less than you paid for it.
Why should you invest?
When you invest, your money makes money instead of just sitting there. Also, inflation makes your money worth less over time if you do not do anything with it.
What is a resume?
A list of your skills and other marketable traits that would make an employer want to employ you.
Why is Harvard such an awful place?
What is the difference between a savings account and a checking account?
A savings account is for more long-term deposits. Your money will earn more interest here. However, a checking account allows you to access and spend your money at any time with a debit card.
What is a credit card balance?
Debt that remains when you do not pay back your credit card bill in full by the end of the billing period. You do NOT want this.
What is the difference between compound and simple interest?
With compound, you get interest based on your principal AND the interest from previous periods. With simple interest, you ONLY get interest based on the principle.
As a student, your resume should be one page.
What is inflation?
As the costs of production and other factors in a market change over time, money becomes overall less valuable.
What is the 20/30/50 rule?
Save 20 percent of your income. Use 30 percent of it for your WANTS. Put aside 50 percent of your income for your NEEDS (utility bills, food, rent).
What is a credit score, and how can you maintain a good credit score?
Your credit score is a measure of how trustworthy you are at paying back borrowed money on time. To maintain a good credit score, you need to consistently pay your bills on time.
What are stocks, and what are the two ways people usually make money with them?
Stocks are shares of a company's ownership. Some stocks offer a dividend, or a small periodical payment they give you for owning part of their company. You can also make money by selling your stock after it has grown in value, profiting off the growth.
True or False: you need to use the word "I" often in your resume to focus in on your responsibilities.
False! Every line in your resume should begin with a good verb, such as "established a more efficient tardy system that led to 50% less late students"
How many Thursday Moneythink mentors are seniors?
One
Name five things that you should consider when deciding what bank account to open.
Any of these 5: minimum fees, account benefits, out of network fees, monthly fees, overdraft fees, stop payment fees, bank location, accessibility.
Name three components of your credit score.
Any of the three: payment history, amounts owed, length of history, new debt, types of debt.
What are index funds? Bonus: give an example of a specific index fund.
An index fund is an investment that tracks a specific stock or bond market. Whenever the stock market goes up, you get money. Investing in an index fund is one of the safest ways to invest. Various examples can be given (any S&P 500, company-specific)
True or false: in an interview, you should limit the amount of personal strengths that you talk about.
True! Quality> Quantity. Focus in on a few (no more than three!) stories that clearly show your strengths.
Japan
What is an emergency fund, and how much money should you ideally have in your emergency fund? (Hint: your answer needs to involve a number of months.)
An emergency fund covers your expenses in the case of emergency. You should have three month's worth of expenses in your emergency fund.
What is the difference between a grant and a subsidized loan
A subsidized loan is a loan where the government helps you pay some of it. However, this is still a loan that you must pay back. A grant is a gift that you do not need to repay.
When you put money into your 401k retirement account, your employer matches the amount you invest, typically up until a limit.
True or false: if your resume is not the specific standard professional format, then your application is not likely to be considered.
FALSE! There is no "standard" format to a resume. As long as your resume is consistent and professional-looking (neat, orderly, readable) then your resume will be fine.
Approximately how expensive was a hamburger in 1950?
$0.30