WorksheetsHunter Midterm: Unit 1-6
Total questions: 60
Worksheet time: 28mins
A popular savings rule of thumb in which 50% of your income goes towards necessities, 20% goes towards saving and debt repayment, and 30% goes towards flexible spending
Thumb's Rule of Saving
50-20-30
50-30-20
Fobres Saving Structure
A bank product that earns interest on a lump-sum deposit that's untouched for a predetermined period of time
Certificate of Deposit
Bond
Stock
Certificate of Death Benefit
Reinvesting earned interest back into the principal to allow money to grow exponentially over time
Simple Interest
Compound Interest
Maintenance fees
Stocks and Bonds
An automatic electronic deposit of net pay to an employee's designated bank account
Direct Deposit
Cashier's Check
Check
CD
Money set aside for unanticipated expenses or loss of income
Emergency Fund
Savings Account
Checking Account
Direct Deposit
The government agency that insures customer deposits if a bank fails up to $250,000 per individual depositor
Federal Deposit Insurance Corporation (FDIC)
IRS
MMA
FBI
The buying of goods without planning to do so in advance, as a result of a sudden whim or urge
Coupon Buying
Sales Buying
surplus Buying
Impulse Buying
Using most or all of your monthly income to cover your monthly expenses, leaving little to no spare cash for saving or investing
50-20-30
Living Paycheck to Paycheck
Impulse Buying
LIFE
A monthly fee that some banks charge to provide access to checking or savings accounts
Maintenance Fees
Taxes
Interest
Overdrawn Fee
A certain amount of money that must be kept in an account as required by that particular financial institution
Minimum Balance
Saving Account
High Interest Account
Bouncing a Check
A type of savings account that may allow debit card and check writing privileges
Money Market Savings Account
ATM
Checking Account
CD
Definition
A method of saving whereby you put a fixed amount of income into a savings account before you pay monthly bills or make purchases
Pay Yourself First
Paycheck to Paycheck
50-20-30
Direct Deposit
An individual retirement account that allows a person to set aside after-tax income up to a specified amount each year
Roth IRA
401K
Savings Account
Not this one
A popular trick to find out how many years it will take your money to double depending on what interest rate you are receiving
401K
Rule of 72
Rule of 48
Rule of 365
Interest paid on the principal alone
Simple Interest
Compound Interest
Maintenance Fees
A fee that is charged if the number of withdrawals from your savings account exceeds the federal limit, which is six free withdrawals and transfers per month
Transaction Fee
Maintenance Fee
Interest
Compound Interest
The cost for one item or measurement that allows it to be easily compared to other products to evaluate which is a better deal
Unit Price
Discount Price
Sales Price
Wholesale Price
A measurement of your assets (money you've saved or things of value you own) minus your liabilities (money you owe others); also called net worth
Wealth
Financial Health
Credit Score
MMA
A type of loan where you borrow money from your retirement savings account. You must pay that borrowed money back, plus interest, within 5 years of taking your loan, in most cases.
401K Loan
BBVA Loan
Social Security Loan
Payday Loan
A yearly fee that may be charged for having a specific credit card, independent of how you use the card
Annual Fee
Service Charge
Overdraft Fee
Sales Tax
The cost you pay each year to borrow money, including fees, expressed as a percentage
APR
FDIC
FICA
Payday Loan
The act of transferring debt from one credit card account to another, usually for a fee
Balance Transfer
Credit Card
Cash Advance
Mortgage
A credit card service that allows cardholders to withdraw a certain amount of cash, either through an ATM or directly from a bank, typically at a high interest rate or for a fee
Cash Advance
Payday Loan
Deposit
Withdrawl
A credit card benefit that pays the cardholder a small percentage of their net expenditures, often as cash, payment toward their balance, reward points, travel miles, or gift cards
Cash Back
United Air miles
Money back Guarantee
Gift Cards
Something valuable that the lender can take as payment if you can't or don't repay your secured loan
Collateral
Car Title
US savings bond
Cashier's Check
A loan that combines two or more education loans into a single loan, allowing the borrower to make a single monthly payment
Consolidation Loan
Home Loan
Car Loan
Time share Loan
The maximum amount that may be borrowed on a credit card
Credit Limit
Overdraft Protection
Balance
APR
A nonprofit financial institution that is owned by its members and organized for their benefit
Credit Union
Bank
Long-term failure to repay a loan according to the terms agreed to, which has a substantial negative impact on the borrower's credit score
Default
Bounced Check
Repossession
A partial payment made in cash at the beginning of the purchase of a good or service, while the remaining balance is due later or is financed as part of a loan
Buyer's fee
Down Payment
Dealer's Fee
A loan with an interest rate that does not change over the life of the loan
Fixed-rate loan
High-interest Loan
The number of days between a borrower's statement date and when payment is due, often without accruing interest
Grace period
Deferred Payment
30 days
The value of ownership built up in a home or property that represents the current market value of the house minus any remaining mortgage payments
Home equity
Mortgage Loan
Mortgage Debt
Loan used to finance a specific purchase for a specific amount of time, during which regular payments pay the accrued interest and a portion of the principal
Installment Loan
Pat day Loan
Car Loan
Home Loan
The amount you owe as the cost of borrowing money
Interest
Service Fee
Balance
A small loan, offered through a business, lent at a high interest rate, and meant to be paid as soon as you receive your next paycheck
Bank Loan
Payday Loan
Title Loan
Credit card
Original amount of money borrowed, separate from interest or fees
Principal
Principle
The amount of time you have to repay your entire loan
Term
2-5 years
10-30 years
Monthly payments
What is a benefit of going to college and having a college degree?
Lower lifetime earnings
Lower interest rates on future loans
Expanded professional and social netowrk
Guaranteed starting salary of $50,000 after graduation
All of the following are costs of going to college EXCEPT...
Tuition and fees
Room and board
Textbooks and school supplies
Scholarships and grants
Which is TRUE about sticker price and net price? (hint: choose 2 correct answers)
Net price is the published cost of going to a school
Sticker Price is the published cost of going to a school
Net price is the sticker price minus scholarships & grants
Sticker price is the net price minus scholarships & grants
When does the FAFSA filing period open every year?
January 1st
June 1st
October 1st
December 1st
What kinds of aid are you eligible for by filing the FAFSA? (hint: choose 3 correct answers)
Grants and Scholarships
Private Student Loans
Work-Study
Federal Student Loans
How do scholarships and grants differ?
Scholarships are need-based; grants are merit-based
Grants are private forms of aid; scholarships are federal
Grants are need-based; scholarships are merit-based
They're not different; they are one and the same
What do you need to file your FAFSA if you're a dependent?
Just your tax forms
Your high school student ID number
Your and your parents' tax forms from 2 years priors
A pay stub if you had a job in the past year
Which is TRUE about the FAFSA?
You only need to file the FAFSA 1x in your college career
Your parents must earn below a set amount for you to apply
You need to file it at the start of every quarter/semester
There is no cost to file the FAFSA
If you select a repayment plan with a longer term for your loans...
You will have a larger monthly pyament
You will have a smaller monthly payment
You will pay less in interest
You will pay the same amount in interest
Which is TRUE about loan payments?
$ goes 1st towards the principal, then the accrued interest
Interest rate has little impact on total cost of the loan
Payments are not split between interest and principal
Interest can be added to the principal if it goes unpaid
What can happen if you don't make payments towards your student loans? (hint: choose 2 correct answers)
You will owe all interst in full after 270 days
Your loan balance may become due in full, but no interest
Your loan servicer will contact you via phone, email, etc.
Your credit score may suffer
In what order should you accept different types of financial aid?
Work-study, scholarships, federal loans, private loans
Private loans, scholarships, work-study, federal loans
Scholarships, work-study, federal loans, private loans
Scholarships, work-study, private loans, federal loans
Which of the following is TRUE about checks? (hint: choose 2 correct answers)
You should endorse the back when writing a check
The amount of money is written both numerically and in words
Checks should show up on your statement within 30 days
You should endorse the back when depositing a check
Overdraft protection...
is a service offered only for premium checking accounts.
brings in a few hundred dollars each year to banks.
is a fee-free service that prevents you from overdrawing.
can keep you from overdrawing but charges a fee.
Mobile or email alerts for your checking account can notify you of...(hint: choose 3 correct answers)
Low balances
Unusual activity
Deposits
Credit Card transactions
Which of the following will DEFINITELY show up on your bank statement at the end of July? (hint: choose 2 correct answers)
Ice cream bought with your debit card on July 16th
A salad bought with cash on July 5th
A birthday check you gave to your brother on July 18th
An ATM withdrawal you made on July 21st
How can you protect your checking account when using online and mobile banking? (hint: choose 2 correct answers)
Use a strong password
Sharing your pin # with only 1 person in case you forget it
Connect to a secure WiFi network
Opt-out of alerts to notify you of unusual activity
