Economics CH. 11

When is the best time to develop good money habits?

• now

• wait until you graduate from college

• anytime is fine

• wait until you're on your own to figure it out

Renting is a good option for some people.

• True

• False

What percentage of your take-home pay should you allot for rent?

• 15%

• 25%

• 75%

• 50%

What is the best mortgage option if you are buying a house?

• 20-year VA loan

• 30-year equity loan

• 15-year fixed-rate conventional mortgage

• 30-year fixed rate mortgage

What does cost of living mean?

• how much of your income is budgeted for rent

• average cost of basic goods and services needed to maintain a certain standard of living

• level of wealth, comfort, and material goods available

• how rich you are when you buy your first home

Periodic payments to a landlord is called....

• down payment

• buying a house

• renting or leasing

• security deposit

When should you stop renting and buy a house?

• when you can do it the right way

• when you want to become a landlord

• when you want to invest in stocks

• when you can afford amenities

If you buy a house while in debt, you put your ​ (a)   at risk.

• house
• life
• insurance
• social life
• car

Living on campus at college could help you ease into living on your own. Which of these would you be required to do if you live off campus?

• pay rent, utilities and groceries

• cut half of your college courses

• live with your parents

• enjoy your freedom

Which of these affects your decision to buy or rent?

• your feelings

• friends opinions

• your financial situation

• income tax