MM Habits
what subconscious factors influence MM?
parents' habits & emotional appeal
what are fixed expenses?
expenses that don't change and are usually monthly
what is a work-study program?
programs that provide part-time jobs to students with financial needs that may be related to the student’s area of study
difference between checking and savings accounts?
checking: manage your money day to day/designed for spending
savings: manage money over long-term/designed to sit for long periods and collect interest
use credit, show you're a good credit risk, obtain small amounts of credit to start, make monthly on-time payments
what is 50/30/20 plan?
50% on fixed monthly expenses, 30% on flexible monthly expenses, & 20% on savings or debt reduction
first step in creating a budget?
estimate monthly income
what are types of financial aid?
student loans, grants, scholarships, & work-study programs
what is a bounced check?
checks that are returned to the payee for nonsufficient funds
how does a loan transaction work?
you are approved for a loan; you agree to an interest rate; and you agree to a term, or length of payback period
steps that control influence on spending?
resist emotional appeals, include friends with MM skills, & enroll in MM class
steps in living within a budget?
know where your money is going, categorize purchases (needs vs wants), & classify expenses (fixed vs flexible)
three things to minimize student loan debt?
minimize use of loans, evaluate repayment plans and interest rates, & take future jobs into consideration
what is a certificate of deposit?
type of investment savings plan
what is a credit report and who is it given to?
document itemizing your credit history, provided to those who are evaluating your creditworthiness
how to calculate simple interest and what do the abbreviations stand for?
I = PRT
I: interest
P: the amount of principal
R: the interest rate
T: the time or term involved