The missing semester chapter 10

Front

Renting with friends to save money is a good idea.

Back

True. Sharing rent can significantly reduce individual housing costs.

Front

Ignoring a 401(k) plan recommendations is smart.

Back

False. Ignoring retirement savings can lead to financial insecurity in the future.

Front

Purchasing a used car is a good financial decision.

Back

True. Used cars often have lower prices and depreciation rates compared to new cars.

Front

What should you do immediately after graduation?

Back

Save on housing by renting with 3 friends, Open Roth IRA with savings, accept a part-time job and supplement income with weekend work.

Front

What is a 401(k) plan?

Back

A retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

Front

What is a Roth IRA?

Back

A retirement account that allows you to invest after-tax income, with tax-free growth and tax-free withdrawals in retirement.

Front

Why is it important to save for retirement early?

Back

Early savings benefit from compound interest, leading to a larger retirement fund.

Front

What are the benefits of renting with friends?

Back

Lower housing costs, shared responsibilities, and potential for a supportive living environment.

Front

What is the impact of student loans on financial decisions after graduation?

Back

Student loans can limit financial flexibility and affect decisions like housing and job acceptance.

Front

What should you consider when purchasing a used car?

Back

Condition, mileage, price, and history of the vehicle.