Personal Info/Privacy
Define Personal Information
Anything that includes detail(s) about you as an identifiable person
Define Expenditure
The action of spending funds
Define Collateral
Something pledged as security for repayment of a loan to be forfeited in the event of a default
Define Private Student Loans
Non-federal loans made by a lender such as a bank, credit union, state agency, or a school
Define Car Loan
Borrowing the amount of a car minus any down payment
Define Credit Card Fraud
The unauthorized use of a credit or debit card to fraudulently obtain money or property
What is the general time expectation for a long term goal?
(At least) 12 months or 1 year
Define Payday Loans
Short term loans that typically have high annual fees (400%) and must be repaid in full by the next payday
Define Deferment
A temporary postponement of payment on a loan under certain conditions and during which interest does not accrue
Define APR (the acronym and definition)
Annual Percentage Rate - the yearly interest generated by a sum that's charged to borrowers
Give one way to avoid Identity Fraud that we talked about in class
Collect your mail
Review card and bank statements regularly
Create different passwords for your accounts
Review credit reports annually
Install antivirus software
What is the 50-20-30 budgeting technique
A “money management” technique that divides your paycheck into three categories 50% for the essentials, 20% for savings, and 30% for everything else
Define Revolving Credit Loans
Lets you borrow up to a credit limit and at the end of the billing cycle you either repay what you borrowed in full or carry over a balance to the next month by only making a minimum payment
Which loans do NOT have a grace period after graduating
PLUS and Private Loans
How does a car loan work
You borrow from a lender (usually a bank) not the dealership
Your interest rest (APR) depends on your credit score, income status, deposit
What are the four things you should do if someone has your identity that we talked about in class
Call companies where you know the fraud has occurred
Place a fraud alert and get credit reports
Report identity theft to FTC
File a report with local police department
List the four "how-to's" for budgeting
Make a list of your values
Set your goal
Determine your income and expenses
Create your budget
Which two loans (that we talked about in class) require collateral
Auto loans and mortgages
What are the four types of Federal Student Loans
Direct Subsidized loans
Direct Unsubsidized loans
Direct PLUS loans
Direct Consolidation loans
How does interest work (in general)
The percentage of interest affects the entire amount of the loan and when you pay off some of the principal amount the interest effects the new (lower) total
What percentage of Americans have their identity stolen each year?
7-10%
List five tips/tools for budgeting
Create your budget before the month begins
Budgeting to zero
Use outside help
Establish needs vs wants
Keep bills and receipts organized
Use separate accounts
Prioritize debt payment
Factor in fun
Start contributing to retirement now
Split your direct deposit
Expect the unexpected
Plan for large purchases
Adjust your budget monthly
What are the six loan types
Secured loan
Unsecured loan
Installment loan
Revolving credit
Fixed rate loan
Variable rate loan
List the differences between Subsidized and Unsubsidized Student Loans
Subsidized: only available to undergraduate students; dependent on financial need; US Dept. of Ed. pays interest while you're in school
Unsubsidized: available to undergraduate, graduate, professional students; not dependent on financial need; you are responsible for all interest
How do you find the monthly APR rate
Find current APR rate and current loan balance
Divide current APR rate by 12 (months)
Multiply that number with current loan balance