Chapter 8: Flashcards
What is having financial security and freedom for the present and the future, and being protected form unexpected financial surprises?
financial wellness
What is the set of skills nadk nowledge hat allow an individual to make informed and effective decisions when managing money?
financial literacy
What are the five competencies to be finacanically literate?
- Earning
- Saving and Investing
- Spending
- Borrowing
- Protecting
What is the purpose of budgeting?
to manage your earning and spending
What does FAFSA stand for?
- Free
- Application
- Federal
- Student
- Aid
What can be described as a financial aid that does not have to be paid back?
grants
What can be described as borrowed money for college that must be paid back with interest?
loans
What can be described as a work program on campus throug which you earn money to help pay for school?
work study
What can be described as a loan that allows students and their parents to borrow money to pay for education (is made through a loan program administered by the federal government)?
federal student loan
What can be described as a loan made by a private lender, such as bank or credit union (the terms and conditions of private student loans are set by the lender)?
private student loan
What can be described as a loan for eligible undergraduat estudetns who demonstrate financial need to help cover the costs of higher education at a college or career school?
direct subsidized loan
What can be described as a loan for undergraduate, graduate, and students in professional studies; the studentdoes not have to have financial need to be eligible for the loan?
direct unsubsidized loan
What can be described as a loan for parents of dependent undergraduate studetns to help pay for education expenses not covered by other financial aid?
direct plus loan
What can be described as a loan for graduate and professional studies studetns to help pay for educational expenses not covered by other financial aid?
direct graduate plus loan
What third of students do not know their credit score or don’t know what credit score is?
1/3
What is describe as interest you pay to borrow money from the credit card issuer?
annual percentage rate (apr)
What is classified as a number that lenders use to help decide how likely it is that they will be repaid on time if they were to give that person a loan or a credit card?
credit score
What is the credit score range?
300-850
What makes up a credit score?
- payment history, debt, credit history, new credit, mixture of credit
What are some benefits of a credit card?
- build credit score, rewards, card holder benefits, protects against cash stolen
What kind of fee from some credit card will charges fee whenever you take cash out of an ATM machine?
cash advance fees
What kind of fee is classified as an yearly fee normally between $35 and $50?
annual fees
What kind of fee will charge a fee for overseas or foreign currency transactions, typically between 1 and 3 percent?
foreign transaction fees
What kind of fee maybe charged to you when you have a balance and miss your minimum payment?
late payment fees
