Intro and Budgeting
What you own
What is an asset?
Should have about 3-6 months worth of money in this
What is an emergency fund?
The money you actually get to take home from your paycheck
What is net income?
This should be no more than 25-30% of your net pay
What is rent
Student loan offered by the government
What are federal student loans?
What you owe
What is a liability?
Rising prices of goods and services
What is inflation?
Account with higher interest rates and less withdrawals
What is a money market account?
Average cost of housing, food, & other goods/services that you need to maintain your standard of living
What is the cost of living?
Student loan offered by banks and credit unions
What are private student loans?
An expense that changes in price, but is expected each month
What is a variable expense?
A rate that your financial institution charges you for lending you the money
What is interest?
Tax that is a percentage of the total sale price
What is sales tax?
This is a legal contract with landlord and tenant
2 or 3 year degree
What is an associates degree?
Expenses that stay the same each month
What is a fixed expense?
Reputation for paying previous debts
What is character?
Extra money consumers have to pay on the things we buy
What is consumer tax?
This should be refunded when you move out
What is a security deposit?
This tells you what aid you are eligible for
What is FAFSA?
An expense that occur at various times throughout the year; tends to be large, lump sums
What is a intermittent expense?
Method where you pay off debt starting with highest interest rate then pay minimum on each debt & the leftover money goes to the debt with the highest rate
What is high rate method?
Account with higher interest rates and less liquidity - money is locked in for specific amount of time
What is certificates of deposit?
An agreement between you and a lender to buy or refinance a home without having all the cash upfront
What is a mortgage?
A grant or payment made to support a student's education, awarded on the basis of academic or other achievement
What is a scholarship?