College Budgeting
What is the 50/30/20 rule in budgeting?
50% needs, 30% wants, 20% savings
What is the difference between a subsidized and an unsubsidized federal student loan?
Subsidized loans don’t accrue interest while in school, unsubsidized loans do.
What is a credit score, and why is it important?
A numerical rating of your creditworthiness, affecting loan approval and interest rates.
What’s a side hustle?
A way to make extra money outside of a regular job.
What’s a common money mistake college students make?
Overspending on food, not budgeting, or misusing credit cards
What is the best way to track spending and avoid overspending?
Using a budgeting app, spreadsheet, or expense journal
What is a grace period for student loan repayment?
The time after graduation before loan payments begin, typically 6 months.
What are two major factors that impact your credit score?
Payment history and credit utilization
Name one easy side hustles for college students.
Tutoring, food delivery, freelancing, selling clothes online, etc.
How can you save money on textbooks?
Buy used, rent, share with a friend, or check the library.
What is an "emergency fund," and why is it important?
A savings fund for unexpected expenses like medical bills or car repairs
What is the best way to reduce student loan interest payments over time?
Pay more than the minimum payment, refinance, or make extra payments toward principal.
How can a student start building credit responsibly?
Get a secured credit card, pay bills on time, or become an authorized user on a parent's card.
Why is it smart to have more than one way to make money in college?
It gives you backup income and helps you save more.
What is lifestyle inflation, and why is it bad?
Spending more when you start making more instead of saving.
What type of expenses are considered "fixed costs" for college students? (Name one)
Rent, car payments, subscriptions, insurance, etc.
What is loan deferment, and when might a student qualify for it?
A temporary pause on payments due to financial hardship, military service, or returning to school.
What’s the difference between a minimum payment and a statement balance on a credit card?
Minimum keeps your account active but charges interest; paying the statement balance avoids interest.
What’s passive income, and how can students earn it?
Money that comes in with little effort, like selling digital products or investing.
What’s an easy way to save money as a student?
Use student discounts on food, software, and streaming services
How can students lower their grocery bill without sacrificing nutrition?
Meal planning, buying in bulk, cooking at home, using student discounts,
What’s a good debt-to-income (DTI) ratio to aim for after college?
Less than 36%, with student loan payments ideally under 10% of income.
What happens if you max out your credit card?
Your credit score drops, you pay high interest, and it’s harder to get future loans.
What should you consider before freelancing in college?
Taxes, business expenses, setting fair prices, and managing time wisely.
How can you spot a financial scam targeting students?
If it asks for upfront money, sounds too good to be true, or pressures you to act fast.