Credit vs. Debit
What’s the difference between a debit and a credit card?
Debit cards take funds from your account in real time; credit cards are billed later
What is a budget?
Parameters to structure monthly savings and expenses based on income.
What does interest on a loan mean?
It’s the cost of borrowing money, which you pay monthly
What is an asset? Provide an example.
Something you own. Ex: A car
What does IRA stand for?
Individual Retirement Account
When’s the right time to start using a debit card?
When you are beginning to save money
How does gross pay differ from net pay?
Gross pay is before taxes; net pay is what you bring home after taxes
What should you evaluate when getting a student loan?
Total fees, Interest rate, Length of repayment
What is a liability? Provide an example.
Money you owe. Ex: Credit card
Name a reason to have a checking account, as well as a reason to have a savings account.
Checking: day to day expenses
Savings: future savings (ST, intermediate, or long-term)
At what age should you start trying to build credit?
Now!
What is direct deposit?
Electronic transfer of payment from the payer to the recipient’s bank account.
What kind of loans can I use to pay for college?
Federal loans, Private loans, Refinanced loans after you leave school
How do you determine net worth?
Net worth = Assets - liabilities
What does RWM stand for?
Rockwood Wealth Management
Is all debt bad? What is an example of good debt? Bad debt?
No. Individuals need established credit, it provides financial powers. Credit helps you get things you need like a loan for a car, house, or a credit card. for Good debt: auto loan, mortgage, Bad debt: high interest credit card debt (not being paid in full monthly)
What is compound interest in a savings account?
Money you earn on both the money you’ve saved and your account’s accumulated interest
What does FAFSA stand for?
Free Application for Federal Student Aid
Who has the highest net worth in the world?
Elon Musk
Who will win March Madness this year?
Duke