Credit vs. Debt
What is credit?
Ability to borrow money NOW with the promise to pay it back later
What is the purpose of a checking account?
receiving paychecks, spending money with a debit card, paying bills or transferring money
What is the first step in paying for college?
understand the cost of attendance
What is the purpose of a retirement account?
save & invest money specifically for retirement
What is debt?
The money you owe after borrowing it
What does a checking account come with?
A debit card and/or checks
What are the income resources to use BEFORE loans?
1. scholarships
2. family contributions
3. part time jobs or work study
4. personal savings
What is the purpose of an investment account?
to invest money for any goal
What are examples of when using credit is best?
1. credit card
2. student loans
3. financing car or phone
4. taking out a house mortgage
What is the purpose of a savings account?
putting money aside to spend later
What are the 2 types of students loans?
1. federal student loans (BEST choice)
2. private student loans
What is a type of retirement fund?
401k
Roth 401k
IRA
Roth IRA
How do you build credit?
You build credit by borrowing money and paying it back ON TIME
What is the purpose of a student/teen account?
helping students learn how to manage money responsibly
What are federal loans offered through?
FAFSA
Are tax breaks a "pro" feature of retirement or investment accounts?
retirement accounts
What is the most important tip of having a credit card?
ALWAYS pay on time
What is something to watch out for with with these accounts?
there can be overdraft fees or fees for drawing money out too fast
Why are private student loans the LAST resort?
higher interest & less flexible repayment terms
Are investment accounts taxable?
Yes