Chapter 9 Finance

Question 1

College students’ income comes from what three sources?

Answer 1

loans that must be repaid, scholarships or grants that are not repaid, and salary earned from part-time or full-time work

Question 2

Types of Student Loans

Answer 2

1. Federal Perkins Loan (especially needy)
2. Federal Subsidized Stafford Loan (at least half-time, gov. pays interest while in school)
3. Federal Unsubsidized Stafford Loan (student pays interest while in school)

Question 3

What is one method to save money?

Answer 3

when you get extra money, immediately put it in the bank

Question 4

How can you manage your finances?

Answer 4

making a plan

Question 5

True or False? Rising costs of college education cause more students to work more during college.

Answer 5

True

Question 6

Credit Scores are based on…?

Answer 6

Payment history, How much you currently owe, Credit history, New credit, Types of credit

Question 7

The amount of the grant you receive depends on…?

Answer 7

EFC- Expected Family Contribution

COA- Cost Of Attendance

Question 8

How to prepare a personal budget…?

Answer 8

In order of importance

1. Basic Needs
2. Incidentals (extras)
3. Emergency funds

Question 9

How can you track your cash flow?

Answer 9

Checking accounts, credit cards, charge cards, and debit cards

Question 10

TRUE OR FALSE: Credit is money obtained with the understanding that it will be paid back.

Answer 10

TRUE

Question 11

Not carrying extra money is an example of strategies for saving money

Answer 11

TRUE

Question 12

What are three categories or sources of expense for college students?

Answer 12

Basic needs or essential necessities, incidentals or extras, and emergency expenses