- Study guides, Class notes & Summaries

FAFSA - Answer-Free Application for Federal Student Aid is the application used by the US Department of Education to determine a student's financial aid eligibility, and its known acronym is: Federal Unsubsidized Stafford Loan - Answer-Which federal loan type is not based on need and students are responsible for paying the interest on this loan while they are enrolled in college? Federal Subsidized Stafford Loan - Answer-Which federal loan type is available to students who are enrolled ...

Which of the payment methods does NOT take money immediately from your checking account? A. Debit Card Purchase B. Overdraft fee C. ATM withdrawal D. Writing a check - Answer-D. Writing a check When you make a purchase with a credit card, you are ____ money from _____ . A. Taking; your savings account B. Borrowing; your loan C. Taking; your credit account D. Borrowing; the bank - Answer-D. Borrowing; the bank Which of the following activities will result in a banking fee? A. Ove...

Create a budget of current income and expenses. Money- Purpose of a budget. Rationale: When a person creates and follows a budget, it helps to control spending. - Answer-In order to get spending under control, a person should first. Of the power of compounding and appreciation Money- Compounding interest. Rationale: It is important to save and invest early because of the power of compounding and appreciation. When money compounds, interest is earned on interest, which greatly increases the v...

The process of determining a person's financial needs or goals for the future and how to achieve them and to pursue personal economic satisfaction. - Answer-Personal financial planning The final step of the financial planning process is to... - Answer-Evaluate and revise your actions This refer to time, money and other resources that are given up when a decision is made. - Answer-Opportunity cost This is an example of an opportunity cost. - Answer-Saving money instead of taking a vac...

What are the three main credit reporting agencies? - Answer-Experian Transunion Equifax What is your credit score? - Answer-(Financial Grade): A calculated score that measures an individual's creditworthiness; two main types of credit scores are the FICO score and the Vantage score. How do you develop credit history? - Answer-Form Credit: Get phone/car bills in your name, credit cards, student loans, making payments on time. How will a low credit score affect you? - Answer-Inc...

Career Planning is done. - Answer-throughout a lifetime Who pays taxes? - Answer-Anyone who has property, buys goods, or has a job What are the three main types of taxes? - Answer-income, sales, property What is Social Security? - Answer-a federal insurance program that provides benefits to retired people and those who are unemployed or disabled. When you pay taxes the government is taking money you earned to fund government administration, social programs, law enforcement, parks & r...

What is not the best way to solve your financial problems? spending less than you earn accumulating debt creating a budget earning money - Answer-Accumulating debt Understanding and implementing sound money-management principles contributes to which of the following? financial success staying out of debt distinguishing needs from wants all of the above - Answer-all of the above When is the best time to start learning about money management? when you start earning money when you ...

What should you do with your bank statements? Select one or more: a. Keep them in a safe file for at least a year before shredding b. Review them to identify improvements you could make to your spending habits c. Throw them away as soon as you have examined them d. Shred them monthly e. Review them to identify and budget for fees f. Reconcile them with your records/register - Answer-a, b, e, f The best way to pay your credit card bill is to pay with: Select one: a. Cash b. Any...

APR - Answer-Abbreviation for Annual Percentage Rate. The APR is basically the cost of credit, or how much you must pay to get a loan, on a yearly basis. The APR is expressed as a percentage, and it reflects the interest rate, as well other fees and charges. APRs can vary widely from one credit card to another. Balance - Answer-the amount of money you owe for purchases or other transactions made with the credit card, and also includes any interest charges, late fees, or other fees (such as an...

Consumer - Answer-A person or organization that uses a product or service Credit - Answer-The granting of a loan and the creation of debt; any form of deferred payment Debt - Answer-An obligation of repayment owed by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original loan amount plus interest Economy - Answer-A system by which goods and services are produced and distributed Financial Literacy - Answer-The kno...