What is credit?
What is a credit score?
A prediction of your credit behavior, such as the likelihood of paying off loans, based on your credit reports.
FAFSA is a department of the US government. True or False?
False
What would you call money received, especially on a regular basis, for work or through investments?
Income
What is the suggested percentage of your income that should go into savings?
20%
What is compound interest?
Compound interest is the interest you earn on interest.
What are the five factors of a credit score?
Payment history, amount owed, new credit, length of credit history, and credit mix.
What does FAFSA stand for?
Free Application for Federal Student Aid
What is a financial plan that outlines an individual's or organization's anticipated income and expenses over a specific period?
A budget
What is a Roth IRA?
An individual retirement account that is generally not taxed withdrawment.
What is the name of the investment approach involves allocating assets among different categories to achieve a balance between risk and return based on an investor's risk tolerance and investment goals?
Risk Management
What are two disadvantages of a credit card?
High fees, high interest, the potential to overspend, can be harmful to credit scores, and credit card debt.
What is the term describing the amount of money a student must pay back to the lender, typically with interest, after utilizing funds for educational expenses?
Student loans
What is "take-home" pay, or what is left after deductions are taken out of your paycheck?
Net Pay
What age do you have to be to have full retirement benefits in America?
67
What is the collection of exchanges and markets where securities, such as stocks and bonds, are bought and sold?
The Stock Market
What is a FICO score known for?
Known for pioneering a method to calculate credit scores.
Which department at ISU can help you with your FASFA and which building is it in?
The Financial Aid Office in Hovey Hall.
What term describes a budgeting method where every dollar earned is allocated to specific spending categories?
Zero-based budgeting
What is the type of retirement savings account offered by employers to their employees in the United States?
401K
What is this investing strategy of spreading your investments across different asset classes, industries, sectors, and geographic regions to reduce risk?
Diversity
What are two benefits of a credit card?
Rewards such as cash back, miles, or points. Protection against fraud and helps you build a credit history.
What are the main differences between subsidized and unsubsidized student loans?
A subsidized loan is needs-based and you don’t start accruing interest until after you graduate while an unsubsidized loan is available to anyone and starts occurring interest when taken out.
What does the acronym S.M.A.R.T stand for in regard to budgeting goals?
Specific, Measurable, Achievable, Relevant, and Time-bound financial goals.
At what age can you take money out of a Roth IRA taxed exempted?
59½
What is the name of the person who purported the largest investment fraud cases in the history of the United States?
Bernard Madoff