Types of Costs
What is a fixed cost?
A cost that stays the same.
What type of neighborhoods are payday loans often in?
Lower income neighborhoods.
What are grants?
Free money for college that does not have to be paid back.
What is a budget?
Possible answers: a way to keep track of your spending, a way to minimize debt, a way to keep track of saving
What is generational poverty?
Poverty that is usually very hard to get out of and occurs when at least two generations have lived in poverty
What is a variable cost?
A cost that can change.
What is a loan?
Money that you eventually have to pay back, usually with interest.
What are federal loans?
Money that is borrowed from the government that has to be paid back with interest.
What is an emergency fund?
What is situational poverty?
Poverty that is often short-term and caused by an unexpected crisis or loss
What is an irregular cost?
A cost that is either a surprise or does not happen monthly.
If you have to take out college loans, where would you get them at the lowest interest rate?
From the government (FAFSA).
What is work study?
Financial aid that gives you a job on campus.
What are some ways to save money?
Possible answers: open a savings account, decrease your spending, use a budget
What are some things that can cause situational poverty?
Possible answers: a job loss, a death, a divorce, health conditions, and a natural disaster
What is an example of a variable cost in a budget?
What is interest?
The amount extra that you have to pay back when paying back a loan.
How often do you have to apply for financial aid?
Once a year (starts in October).
Why is having a checking account helpful?
What are some things that can make it hard to get out of generational poverty?
Possible answers: lack of opportunities, lack of resources, and lack of education
What is an example of a fixed cost?
Possible answers: rent, subscriptions, insurance, loans
What are some ways payday loan businesses take advantage of people?
Possible answers: extra fees, make it easy to borrow money, confusing terms of borrowing money
What does FAFSA stand for?
Free Application for Federal Student Aid
How can you minimize debt/save money in college?
Possible answers: work at least part-time, pass classes so you don't have to retake and repay, rent or borrow textbooks, take classes at a community college, only take classes you need, talk to an advisor to make sure you are only taking needed classes
What are some stereotypes about those that live in poverty?
Various answers