Personal Finance Chapter 5 (Dave Ramsey)

cash flow

Pay as you go.

Which of the following statements about college financial aid is false?

Scholarships are only for the highest academic achievers.

Which of the following is not one of the basics of budgeting?

Stick to your budget unless something unexpected happens

Which of the following statements is false?

Students rarely drop out of college due to financial trouble.

A four-year degree is necessary regardless of which career youʹre entering.

false

When shopping for the best education option, you should narrow down your choice of colleges to 10 schools or less.

false

You must go to a prestigious school in order for employers to recognize your talents and strengths.

false

You'll only need to complete the FAFSA once during your college education

false

the best colleges are always the most expensive

false

Usually a professional trainer serves as the course instructor and uses a combination of hands -on activities and formal classroom training

on- the- job training

The Fourth Foundation is:

pay cash for college

If you plan to attend a community college for your first two years, you'll want to work closely with your advisor to make sure that the classes you take will transfer to your four-year school of choice.

true

Our culture thinks student loan debt is normal and that it's an acceptable way to pay for college.

true

The academic and financial choices you make in the next few years will affect the next 40 years of your life.

true

The average millionaire reads one nonfiction book a month.

true

You must shop for the best price for your education in the same way you comparison shop for any large purchase.

true

The total estimated student loan debt outstanding (unpaid) is over:

$1 trillion

The average repayment period for a student loan is:

10 years

percentage of college students that graduate with student loans

66%

grant

A form of federal or state financial aid that does not need to be repaid; usually given to students who demonstrate financial need

scholarship

A form of financial aid that does not need to be repaid; usually awarded on the basis of academic, athletic or other achievements

Entrepreneur

A person that starts his or her own buisness

Which of the following statements is false?

A student loan is an award.

communty college

A two-year government-supported college that offers an associate's degree

Which of the following statements is false?

All high-paying careers require a four-year college degre

Trade School

Allows students to learn basic professional skills in two years or less; typically cut out many of the general courses required by traditional universities

Which of the following is not a good option when it comes to paying for your education?

Ask your parents to take out a loan

A form that is completed annually by current and prospective college students to determine their eligibility for financial aid

Fafsa

a wise college plan does not include

Finding the most expensive, prestigious college so that you can impress future employers

Certifications

These may be free or low-cost; found online, at community colleges, or through government-funded programs

work study

a program that allows students to work part time while continuing their studies

Which of the following are ways that you can invest in yourself?

all of the above

Which of the following could be a negative consequence of taking out student loans?

all of the above

You should visit your college's financial aid office if:

all of the above

Which of the following is not recommended when you are cash-flowing your college education?

attend an out of state school