Insurance & Loans
If you’re a great driver, why do you still need car insurance?
To protect against others’ mistakes and meet liability/financial responsibility requirements
When you subtract your grants and scholarships from a college’s Cost of Attendance (COA), you end up with your…
Net price (out-of-pocket cost)
What is one thing you should not do with your credit card—and why?
Max out the card because high utilization helps your score
Which should you use when creating a budget—and why?
Net pay, because that’s your take-home after deductions
To reduce identity theft risk, what should you do regularly?
Monitor bank/credit activity, check credit reports, enable alerts, and use strong/unique passwords
Why get renter’s insurance?
It can cover your personal property, personal liability, and some additional living expenses after a covered loss
What’s the most important first step to get money for college?
Completing the FAFSA by priority deadlines
If you have multiple credit balances at different interest rates, what’s the most cost-effective payoff strategy?
Pay highest interest rate first (while making minimums on others)
Which option lists valid ways to access money from a checking account?
Writing a check, debit card purchases, ATM withdrawals, online transfers/bill pay
When shopping, how do you get the “best bang for your buck”?
Compare unit price/total cost of ownership, quality, and reliable reviews
What is your responsibility when getting a student loan even if you have a co-signer?
Make on-time payments because the loan appears on your credit, too
When paying for college, what are three smart things to consider?
Net price (after financial aid), graduation/earnings outcomes, and how much you’ll need to borrow
What’s the primary purpose of a credit report?
Summary of your borrowing and payment history used by lenders and others
Why use an online/mobile banking app?
To deposit checks (mobile), transfer funds, pay bills, set alerts, and monitor transactions securely
When choosing a financial product (loan, credit card, savings), what should you NOT do?
Focus only on the monthly payment and ignore APR/fees/total cost
Why do many families need life insurance?
To provide financial support for dependents, cover debts/final expenses, and replace income if the insured dies
FAFSA
The form required to access most federal and many state/institutional college aid programs
What is the job of companies like Equifax, and how is it related to you?
is a credit bureau that collects credit data to create credit reports/scores that affect your borrowing, insurance, and sometimes employment.
What are typical payroll deductions taken out before you see your pay?
Federal/state income tax, FICA (Social Security/Medicare), and possibly benefits/retirement contributions
One is used to pay for things but you don't get interest. And the other is used to save money but you have to transfer the money if you want to spend it.
Checking's Account and Savings Account