Ch 7/L1-3: College
Loans made by the government with terms and conditions set by law; often have a lower fixed interest rate
Federal Student Loan
Financial aid that does not usually need to be repaid; usually awarded based on financial need
Grant
The average cost of the basic goods and services needed to sustain a certain standard of living
Cost of Living
Things that help provide convenience, comfort, or enjoyment
Amenities
Mutual funds are less risky and can outperform the stock market because they are ________
diversified
If you want to work in a specifc trade—like massage therapy, plumbing, electricity, or auto mechanics— you can attend a _________
Trade or Vocational School
An award presented to students who display high educational excellence
Scholarships
A mortgage with a set interest rate (does not change) for a set number of years
Fixed Rate Mortgage
Insurance that protects lenders against loss if the borrower defaults on the loan; does not go toward paying down your mortgage at all
Private Mortgage Insurance
When stock prices in a financial market experience a prolonged decline
Bear Market
Debt payments are held off for or until a certain time but interest continues to accrue
Forbearance
A program that allows students to work part time while continuing their studies
Work Study
Reriodic payments (usually monthly) by a tenant to a landlord in return for the use of a property
Renting
A legal contract that allows the renter, or lessee, rights to the use of a property owned or managed by the lessor for a period of time
Leasing Contract
The measurement of gain or loss generated on an investment relative to the amount of money invested
Rate of Return (ROR)
These programs teach skills faster than many other educational programs. They can provide training in practical coding and video production.
Certification Programs
The federal application required to receive any financial aid, including scholarships, grants, or loans offered through a college or university
FAFSA
When someone spends so much of their income on the costs of homeownership that they struggle to reach other financial goals
House Poor
Proivde at least ONE Major Goal you must achieve before purchasing a house.
1) 10-20% down payment
2) 3-6 months savings
3) No debt
4) mortgage payment <25% take home pay
In the Team Investment Project, what are the 3 filter parameters which we filter fund selection?
1) Expense Ratio, 2) Min IRA Investment, 3) Sales Load
When a professional trainer serves as the course instructor and uses a combination of hands-on activities and formal classroom training, this is called __________.
On-The-Job Training
A set of tests that qualify students to earn college credit if they pass them
CLEP(College Level Exam Program)
Give one reason why you want a 15 yr over a 30 yr mortgage?
1) Interest Rate is lower, 2) Pay less interest, 3) Pay off mortgage faster
The increase in value of a home over time; the difference between the amount owed and what the home could be sold for
Equity
In the Team Investment Project, if you were to purchase one passive investment for your portfolio, what index would you purchase?
S&P 500