Mastering Personal Finance Skills

What is the first step in creating a budget?

• Create a savings plan.

• Assess your current financial situation.

• Cut all expenses completely.

• Invest in stocks immediately.

What does FAFSA stand for?

• Free Assistance for Financial Student Aid

• Free Application for Federal Student Aid

• Federal Application for Financial Student Aid

• Federal Assistance for Free Student Aid

Which of these is a variable expense?

• Electricity Bill

• Rent

• Insurance

• Car Loan Payment

How can you effectively track your spending?

• Ignore your receipts and estimate your spending at the end of the month.

• Only track spending when you feel like it.

• Rely solely on your memory to remember your expenses.

• Use budgeting apps or spreadsheets to categorize and review your expenses regularly.

(a)   is a temporary pause in loan payments, usually due to financial hardship, unemployment, or returning to school; with certain types of loans, interest may not accrue during this time period

Which factor greatly impacts your credit score?

• Payment History

• Credit Utilization

• Credit Mix

• Length of History

Which payment method creates a debt that you have to pay back later?

• Debit Card

• Gift Card

• Bank Card

• Credit Card

(a)   are performance-based type of income that is most commonly paid to salespeople and directly based on the amount of sales they generate

What is a credit score and why is it important?

• A credit score is a measure of creditworthiness that impacts loan approvals and interest rates.

• A credit score is a score given by banks to assess customer loyalty.

• A credit score is a rating of personal character that affects job applications.

• A credit score is a measure of income that determines tax rates.

How can you improve your credit score?

• Max out existing credit limits

• Open multiple new credit cards

• Ignore credit reports

• Pay bills on time, reduce debt, avoid new credit inquiries, check for errors, and maintain credit mix.