What the paperwork
The official form submitted to determine eligibility for federal student aid.
FAFSA Application
Marcus has a $2,000 balance on a credit card with a 20% APR. His minimum payment is $50. This month, he decides to pay $250 instead.
What balance will be charged interest next month?
$1750
The total amount an employee earns before taxes, benefits, and other payroll deductions are withheld.
Gross Pay
FAFSA:
FAFSA: Free Application for Federal Student Aid.
The application you submit in order to determine eligibility for federal student aid
What is FASFA?
A document written in mainly bullet points that showcases work experience and education.
A Resume
Jordan just started a new job with a gross pay of $3,500 per month. Based on their W-4, the following will be deducted from their paycheck: Federal Taxes (10%), Social Security (6.2%), and Medicare (1.45%).
What's his Net pay?
$2882.25
Gift Aid doesn't need to be paid back, but the ______ do.
Loans
APR:
Annual Percentage Rate (the yearly interest rate charged on loans or earned on investments).
Sara’s employer calculates her earnings as $4,500, but $810 is immediately "lost" to federal and FICA taxes. This 2-word term describes the $3,690 she actually receives in her paycheck.
What is Net Pay
A tax form completed by employees during their first week to determine tax withholdings
A W-4
Maya has renters insurance with a monthly premium of $20 and a deductible of $1,000. During a storm, a window breaks and destroys $4,500 worth of her furniture and electronics
How much does Maya have to pay How much will the insurance company pay?
Maya: $1000
Company:$3500
There are several deductions that can come out of your check, including Federal, State, and local (if applicable) taxes. Name two other things that can be taken out of your check?
Health benefits, retirement, Social Security, Medicare, Child Support, Unpaid taxes, defaulted student loans or consumer debt
STAR:
Situation, Task, Action, Result
One need to be repaid, while the others are "gift aid" that don't need to be repaid.
What is the difference between loans and financial aid?
A detailed document showing credit history, account ages, and payment patterns used by lenders and service providers
A credit report
A student is comparing two colleges. College A has a total cost of attendance of $40,000. The student receives a $15,000 scholarship and a $5,000 grant. They are also offered a $5,500 federal student loan.
What's the net Price?
$20,000
This is what you have to pay monthly to your insurance to have insurance in the first place.
Premiums
CD:
Certificate of Deposit (a savings product that earns a fixed interest rate for a specific period of time).
To find the true "money lost" for a year of school, a student subtracts "gift aid" from the total Cost of Attendance, but they must NOT subtract this form of assistance because it is eventually paid back to the lender with interest
What are student loans?
The tax form provided by employers that reports an employee's annual wages and the amount of taxes withheld.
A W-2
You put $1,000 into a high-yield savings account earning 2% annual compound interest and leave it there for 20 years without making any further deposits.
Using the compound interest formula, determine the approximate balance of the account after 20 years.
$1,485.95
To stop "losing" $120 a month to her 24% APR credit card, Sara should use this specific repayment strategy, which prioritizes paying off her highest-interest debt first.
Avalanche Method or Paying the highest interest rate first
HSA:
Health Savings account
This is an IRS form given to you at the start of a new job.
What is a W-4?