Everfi Modules & Managing Money Final Exam

529 Plan

A savings plan that allows you to save for higher education and training without paying taxes

Types of student loans

Federal, State, and Private

Things to consider when making a budget

Fixed/ basic finances

FAFSA

Free Application for Federal Student Aid. main form students use for federal education grants and loans.

Compound Interest

Interest that is generated on the money you put into an account plus the interest you make that money. In other words, with compound interest, you earn interest on your interest.

Savings

Money set aside to not spend it for a long time.

Credit Card

borrowed money from a bank to make purchases. must be paid back with any applicable interest or fees

Benefits of budgeting

control what your spending, planning, motivation, and avoiding financial problems

Premium

cost of insurance. A premium covers a set amount of time and payment may be due all at once or divided and paid on a regular basis.

Checking Account

everyday transactions through checks or debit cards.

Grant

financial aid that helps pay for their education. do not have to be repaid.

Owning

full ownership of property

Benefits of insurance

help fund for emergencies

Scholarship

help pay for their education. does not need to be repaid. must be applied for

Importance of good credit scores

helps you qualify for loans, credit card, insurance, other business activities that require credit worthiness

Simple Interest

interest paid on the principal alone

Purpose of Taxes

pay for government expenses

Debit Card

payment card that allows you to make electronic purchases directly from your checking account.

Compound Interest

principal amount + any interest already earned

Company stock

security that represents the ownership of a fraction of a corporation.

Deductible

specified amount of money that the insurance policyholder must pay before an insurance company will pay a claim.

investment

spend to gain more money

Savings Account

stored money for longer-term goals

Lease

terms under another party

Net Income/ Pay

total amount earned after taxes + deductions are taken out

Gross Pay

total amount of money earned before taxes and deductions

Delayed gratification

wait on current wants to have greater wants in the future