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
