Everfi Test fully solved 2023/2024

Everfi Test fully solved 2023/2024What are the different types of banking institutions? retail, credit union, online How is a checking account different than a savings account? savings account has lower liquidity How can you monitor your checking account balance and what are the risks of spending more money than you have? monitor online What is interest? How is interest different from compound interest? interest= the fee someone pays to be able to borrow money difference from compounding= you earn interest on your interest Why is it important for young people to start saving as early as possible given the principles of interest? the longer the money is in the account the more the interest builds What is the purpose of a budget? to not spend more money than you have How can people make sure their budgets remain balanced? budget for what you need and not what you want What is credit, and how can it be useful to consumers? to gather good and services before payment What features of a credit card do you need to research when considering a credit card? your interest online How can people make sure they are using credit cards responsibly? checking their credit score What is the difference between a debit card and a credit card? debit cards take money directly out of the account credit cards is borrowing money that you pay in full at the end of each month What information goes into a credit score, and what information does not? Goes in- payment history, amounts owed, length of credit history Does not- paying late phone bill Why would you want a good credit score? How are credit scores used? If you have a good credit score it can help you get loans for buying houses or cars What can you do to help make your credit score strong? pay your bills on time, check your credit score What can you do if you have a low credit score, to help increase it? You can charge less amounts to the card so it is easier to pay back on time. You can review your credit card bill online or close out an old credit card How is education an investment in yourself? Return on investment. This gives each person a better chance of higher earnings Explain why it might be a good idea to borrow money for college if you might not otherwise afford to go. A bachelor's degree in college has a 160% return on investment What are the steps in the student loan process? Grants/scholarships, Federal student loans, Private loans