Module 5 & 6: Review

Money that a person, organization, or government owes to another person, organization, or government

• Principal

• Principal Balance

• Debt

• Loan

Your ability to generate income from your work by creating economic value; you can enhance this ability by gaining more skills, knowledge, experience, and professional connections

Money borrowed from a lender that is to be paid back over time, usually with interest

• Loan

• Loan Term

• Debt

• Principal

TRUE OR FALSE: A 'need-based' is a term to describe something which is awarded based on someone's lack of financial resources rather than their achievements or abilities

• TRUE

• FALSE

The amount of money a borrower currently owes to a lender; it includes any interest charges and it gets reduced as the borrower makes payments

An asset owned by a borrower that they promise to give to the lender if they are unable to repay their loan according to the terms and conditions of the loan agreement; for example, when financing a home or car, the home or car is the asset securing the loan

• Principal

• Collateral

• Down Payment

• Loan

A way for students to earn money to help cover the cost of their education by taking part-time jobs that are paid for by the government; these jobs are often on-campus and related to the student's field of study

Another person—other than the borrower—who agrees to be responsible for making loan payments on the borrower’s behalf if the borrower is unable to make their payments

Which of the following is NOT a non-income career factor?

• company culture

• job satisfaction

• earning commission

• work-life balance

A recurring pattern in which a borrower takes out new loans to help them pay back old loans, and this new borrowing leads to more future borrowing—and an ever-increasing amount of debt