🎓 College Cash
What does FAFSA stand for?
Free Application for Federal Student Aid.
What is a credit score?
A number that reflects how responsibly someone manages borrowed money.
What is gross pay?
Money earned before taxes and deductions.
What's the difference between a need and a want?
A need is something necessary for survival or daily living, a want is something you'd like but can live without.
Which bank account is best for everyday spending?
A checking account.
What type of financial aid does NOT have to be repaid: scholarships, grants, or loans?
Scholarships and grants.
Which action helps build good credit: paying bills on time or missing payments?
Paying bills on time.
What is net pay?
The money you take home after taxes and deductions.
Is rent a need or a want?
A need.
Which account is designed to help your money grow through interest?
A savings account.
Why do colleges ask for FAFSA information?
To determine a student's eligibility for financial aid.
What is interest?
The cost of borrowing money.
What document shows your earnings, taxes, and deductions?
A pay stub.
Alex earns $600 per month. He wants to save 20% of his income. How much money should he save each month?
$600 × 0.20 = $120
What is direct deposit?
Money electronically deposited into your account.
A student receives a $5,000 scholarship, a $2,000 grant, and a $3,500 loan. How much money will they need to repay after college?
$3,500
: Sarah has a credit card with a $1,000 limit and a $900 balance. Why might this hurt her credit score?
She is using too much of her available credit (high credit utilization).
Your paycheck says $750 gross pay, but only $620 is deposited into your account. Why?
Taxes and deductions were taken out.
Maria earns $800 each month. She spends $55 on her phone, $120 on gas, $200 on food, and $150 on entertainment. How much money remains?
Maria's expenses.
$55 + $120 + $200 + $150 = $525
Subtract her expenses from her income.
$800 - $525 = $275
$275.
Why is keeping all your money in a checking account usually not the best long-term strategy?
Checking accounts usually earn little to no interest.
What is the difference between a subsidized and unsubsidized federal student loan?
With a subsidized loan, the government pays the interest while you're in school (if you qualify). With an unsubsidized loan, interest begins building immediately.
A student misses two credit card payments, maxes out their credit card, and applies for three new credit cards in one month. Name TWO reasons their credit score will likely decrease.
You earn $14 per hour and work 18 hours this week. What is your gross pay?
$252.
Hourly Rate × Hours Worked
$14 × 18= $252
A student saves $50 each month for one year and earns $12 in interest. How much money do they have at the end of the year?
Total Savings
$50 × 12 months = $600
Add the insterest
$600 + $12 = $612
$612.
You have $300 in your bank account but spend $350. What is this called?
Overdrafting (or an overdraft).