personal finance 1
A percentage paid to a lender for the use of borrowed money is called
interest
What does "SSN" stand for?
Social Security Number
What two groups of people are most likely to fall victim to scams?
What is the credit range?
300 - 850
something, typically money, that is owed or due
Debt
Why do you add in a line/dotted line after writing the dollar amounts on checks?
to prevent others from adding or changing the amount being cashed.
What should you do if your identity/financial information has been stolen?
freeze credit
file police report
contact FTC
change passwords
alert financial institutions
What is the purpose of saving money in personal finance?
To build an emergency fund and achieve financial goals
If you have never had any type of credit/loan, what is your credit score?
non-existent (ghost credit score)
What is a benefit to having good credit?
convenience
future planning
cash benefits (credit cards)
emergencies
What is one way that someone could protect themselves from identity theft?
Use strong, unique passwords
Enable two-factor authentication
Monitor credit reports regularly
Shred sensitive documents
Be cautious on public WiFi
Don't overshare on social media
Check your mail consistently
After moving change your address quickly
What is the principal?
the original amount of money borrowed.
What is a loan, and how can it help you?
A loan is borrowed money that can be for many different reasons. it can help you by providing funds for something that is helpful to the person (service, investment)
What might be considered the fastest way a young person can start building credit?
credit card
loan
being added as a user on a trusted person's credit card
What does FAFSA stand for?
Free Application Federal Student Aid
What does FDIC Insured mean?
The federal government will repay your deposits of up to $250,000 if the bank fails.
provides eligibility information for loans, grants, scholarships
offers access to federal loans/money to attend higher education (most often at a better rate than others)
How can you safely get an accurate "credit report?
Requesting a report from one of the 3 main credit bureaus (experian, transunion, equifax)
Which credit bureau is the largest/most commonly used for different lenders?
Experian
Why might it be a good reason to keep money in a bank account instead of other alternatives?
money will be safe/secure
most likely insured up to 250k
paying bills easier
paper trail
type of account that tends to offer a higher interest rate than traditional savings accounts.
High Yield Savings
What is the difference between "Gross pay" and "Net pay"?
gross pay = the total amount earned from income
net pay = actual take home income after taxes and deductions
What is a fixed expense?
an expense in a budget that will typically stay the same and not change even when income does (ex. food, rent, utilities)
What are the 5 categories used to calculate credit score?
payment history
amount owed
length of credit history
credit mix
new accounts
What is a variable expense?
an expense in a budget that can change by day/week/month and has flexibility