Budgeting Basics
Telling your money what to do instead of wondering where it went
What is a budget?
Who makes federal student loans
What is the U.S. Department of Education?
The smallest amount you can pay on a loan/credit card each month
What is the minimum payment?
What PSLF stands for
What is Public Service Loan Forgiveness?
The decrease in value of an asset over time
What is depreciation?
Bills that must be paid each month (rent, utilities, car payment)
What are set expenses?
The main difference between subsidized and unsubsidized loans
What is subsidized loans do not accrue interest while in school; unsubsidized do?
The method that pays off the smallest debt first
What is the Snowball Method?
The number of qualifying payments that are required for PSLF
What is 120 payments?
An increase in the value of an asset over time
What is appreciation?
The percentage of income that should go toward goals in the 50/30/20 rule
What is 20%?
The borrower for Parent PLUS Loans
Who is the parent?
The method that focuses on paying the highest interest rate first
What is the Avalanche Method?
The repayment plan that bases payments on income
What is Income-Driven Repayment Plan (or SAVE/PAYE/IBR/ICR)?
Formula for net worth
What is Assets - Liabilities?
The first step in creating a budget
What is determine your income?
The Texas-based loan offered through the Texas Higher Education Coordinating Board
What is the College Access Loan (CAL)?
Increasing spending just because income increases
What RAP stands for
What is Repayment Assistance Plan?
Money today is worth more than the same amount in the future because it can earn interest
What is the Time Value of Money?
How much would go toward flexible expenses using 50/30/20 if you make $2,000 per month
What is $600?
The type of loan that usually requires a credit check and may require a cosigner
What are private student loans?
The recommended starter emergency fund goal?
What is $500?
The amount of time until forgiveness under the new Repayment Assistance Plan (RAP)?
What is 30 years?
The total amount of money you will have if you invest $1,000 at 5% interest for one year
What is $1,050?