Credit
What is a credit score?
Your financial reputation — a number showing how well you manage borrowed money.
What is the difference between federal and private student loans?
Federal loans offer more protections, better repayment options, and lower risk.
What is the 50/30/20 rule?
50% needs, 30% wants, 20% savings or debt.
What is an emergency fund?
Money set aside for unexpected expenses.
You have $50 left for the week. What’s the first thing you should check?
Your needs — food, transportation, upcoming expenses.
What’s the most important part of your credit score?
Payment history.
What does “subsidized loan” mean?
The government pays the interest while you’re in school.
Give one example of a NEED and one example of a WANT.
Need: groceries, transportation. Want: DoorDash, clothes, events.
What does “pay yourself first” mean?
Treat saving like a mandatory bill.
Is buying an outfit for an event a NEED or a WANT?
A WANT.
What percentage of your credit limit should you try to stay under?
30% (10% is excellent).
What type of loan builds interest immediately?
Unsubsidized loans.
What is the purpose of a “Sunday Reset”?
Review spending for the week and plan ahead to avoid overspending.
Why are high-yield savings accounts better than regular savings accounts?
They earn more interest and grow your money faster.
What financial concept helps you compare two choices (like study abroad vs. saving money)?
Opportunity cost
Name two ways a college student can start building credit safely.
Use a student/secured card, pay on time, keep balances low, put one bill on auto-pay.
Name two things you should ALWAYS know about your loan.
Type (federal/private), interest rate, total balance, repayment plan.
Why is budgeting important for college students?
It helps manage refunds, paychecks, and avoid running out of money unexpectedly.
What is compound interest?
Earning interest on your interest — your money grows over time.
Why is using 90% of your credit limit risky even if you pay your bill?
High utilization lowers your credit score.
What happens when you apply for too many credit cards in a short time?
Your score drops due to multiple credit inquiries.
How can paying even $10–$20 a month while in school help you later?
It reduces the interest you’ll owe after graduation.
What is the difference between “tracking your spending” and “budgeting”?
Tracking shows where your money went; budgeting tells your money where to go.
What is one realistic way a college student can save $20–$50 a week?
Meal prepping, reducing DoorDash, limiting Uber rides, choosing cheaper events, etc.
You get a refund check. What should you do before spending any of it?
Make a budget for the semester so the money lasts.