Budgeting & Cashflow
What is a fixed expense
Predictable costs that remain constant month-to-month. Examples include rent, auto insurance, and phone contracts
What is FAFSA
Free Application for Federal Student Aid
What happens to funds the second you pay for something
Instant hold (authorization)
What is an example of a varible cost
Costs that fluctuate based on usage, consumption, or individual choices. Examples include groceries, utility bills, dining out, and entertainment
When do students enroll for 21st century scholarships
7th-8th grade
Explain reconciliation
the process of comparing two sets of financial records to ensure accuracy and resolve discrepancies
What is positive cash flow vs negative cash flow
Positive: NetCashFlow>0
Negative: NetCashFlow<0
Name three criteria for 21st century scholars
Earn an Indiana Core 40 diploma.
Maintain a minimum cumulative GPA of 2.5.
Complete yearly Scholar Success Program (SSP) activities.
Submit the FAFSA by the senior year state deadline.
How do you find your True Adjusted Balance
Personal bank account reconciliation compares bank statements against a personal register/ledger
When reallocating funds, what is a category you should never touch?
Fixed
What is Gap Insurance?
Covers the financial gap between the vehicle's market value and the remaining loan balance in the event of a total loss
How do discrepancies happen?
from unrecorded items such as uncleared checks written against the ledger, bank service charges, or outstanding deposits in transit
Explain the 50/30/15/5 budgeting rule
(50%), Wants (30%), Savings (15%), and Giving (5%)
With Auto loans, explain the pros and cons of loan term lengths.
Shorter terms: Result in higher monthly payments, but lower total interest costs over time.
Longer terms: Result in lower monthly payments, but significantly increase cumulative interest paid.
Explain debit vs. credit card processing
Debit Card Processing: The available account balance drops immediately due to an authorization hold, though actual funds may not physically leave the bank account right away.
Credit Card Processing: Available credit decreases immediately, and the line item is displayed as "Pending" until final settlement.