Banking Basics
This government agency insures your bank deposits up to $250,000.
What is the FDIC (Federal Deposit Insurance Corporation)?
The most important factor (about 35%) in calculating your FICO credit score.
What is payment history?
The tax you pay on profit from selling an investment like a stock.
What is capital gains tax?
The 50/30/20 rule allocates 50% of your income to these essential expenses.
What are needs?
This application is required to qualify for federal student aid and often state aid.
What is the FAFSA (Free Application for Federal Student Aid)?
This type of account is best for sending electronic payments to friends.
What is a mobile payment account?
This type of credit inquiry when you apply for a loan can lower your credit score.
What is a hard pull (or hard inquiry)?
This form tells your employer how much federal tax to withhold from your paycheck.
What is a W-4 form?
This budgeting method involves saving money before you budget for anything else.
What is the "pay yourself first" method?
This type of federal student loan does NOT accrue interest while you are in school.
What is a subsidized loan?
This three-letter acronym stands for the annual rate of return you earn on a savings account, including compound interest.
What is APY (Annual Percentage Yield)?
This type of loan typically has a lower interest rate because it is backed by collateral like a car or house.
What is a secured loan?
This is your total pay before any taxes or deductions are taken out.
What is gross income (or gross wages)?
Money set aside in this part of your budget protects you from unexpected expenses like car repairs.
What is an emergency fund?
The recommended first source of money to use for college costs.
What is "free money" (scholarships, grants, personal savings)?
A feature that automatically moves money from your checking to your savings account each month.
What is an automatic transfer?
The law that gives you the right to dispute errors on your credit report.
What is the Fair Credit Reporting Act (FCRA)?
A 1099 form is typically received by these types of workers, not traditional employees.
Who are contractors, freelancers, or self-employed individuals?
When creating a budget, you should plan your spending using this type of income (hint: your take-home pay).
What is net income?
A campus job that is designed to work around your class schedule.
What is a Federal Work-Study job?
This type of account often requires a minimum deposit and offers a fixed interest rate for a set term.
What is a Certificate of Deposit (CD)?
If you pay your entire credit card balance during this period, you won't be charged interest.
What is the grace period?
Unlike a deduction, this reduces the amount of tax you owe, dollar-for-dollar.
What is a tax credit?
Saving for a vacation next year is an example of this type of financial goal.
What is a short-term goal?
Postponing payments on an unsubsidized loan does this to the total loan cost because interest keeps adding up.
What is increases the total cost?