Saving
Interest paid on interest previously earned
Compound Interest
A written cash-flow plan
Budget
A decrease or loss in value
Depreciation
A program that allows students to work part time while continuing their studies
Work study
Buying an item with credit; paying overtime
Financing
How much of an emergency fund should you have?
$500
A summary that shows total income and spending for a given time period
Cash-flow statement
A type of card issued by bank that allows users to finance a purchase
Credit card
An undergraduate academic degree awarded by colleges upon completion of a course study lasting two years
Associates Degree
Financial opportunity given up because you chose to do something else with your money
Opportunity cost
Saving money overtime for a large purchase
Sinking fund
A copy of each check you write
Carbon check
Cost of borrowing money on an annual basis
Annual Percentage Rate
A form that is completed annually by current and prospective college students to determine their eligibility for financial aid
FAFSA
Latin term for "buyer beware"
Caveat Emptor
The five steps to financial success
The Five Foundations
What is a Zero-based budget?
You only spend what you are supposed to, and every dollar that comes to you has a purpose
Asking your parents to help you pay off your debt is a good idea
Grants, scholarships, work study, save before, etc
What are steps 1 and 2 for making a significant purchase?
Wait overnight, and consider motives
What are 2 things should you consider when evaluating the time value of money?
Inflation and Intrest
Why don't cash flow plan always work?
Impulse purchases
Overdrafting
Over complicating, leave things out
How does Debt Snowball method work
Pay off smallest loan first and then work your way up to the biggest loan.
Student loans are normal things that all Americans have
False
What are the last 2 steps to making a significant purchases?
What is the opportunity cost, and seek council from a trusted person/significant other