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Questions and Answers
What determines a FICO Score?
What can be done with a credit card that can't be done with a debit card?
Go into debt
FCRA requires creditors to notify consumers if they deny credit based on a credit report.
True
What is the Drive Free Method?
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What is the most cost-effective option for purchasing a home?
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You should have a ______% down payment on a mortgage.
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What does the Debt Snowball method involve?
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What is a Paycheck Garnishment?
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The Lottery Myth suggests that gambling can lead to wealth.
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Having a credit card means you have financially arrived.
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What does a Credit Score represent?
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Information is removed from your credit report after ______ years.
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Bankruptcy stays on your credit report for ______ years.
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What defines a Loan Term?
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What does APR stand for?
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What is Depreciation?
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What is an Annual Fee?
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What is a Lease?
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What does it mean to be Upside-down in terms of debt?
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What is a Credit Card?
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What is a Secured Loan?
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What is an Unsecured Loan?
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What is an Introductory Rate?
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The total estimated student loan debt outstanding is over ______.
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The average repayment period for a student loan is ______ years.
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What is the Fourth Foundation?
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Percentage of college students that graduate with student loans is ______%
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The average millionaire reads ______ non-fiction book every month.
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You should fill out the FAFSA ______ while in college.
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What does FAFSA stand for?
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What is a Scholarship?
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What is Work Study?
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What is a Grant?
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What is Community College?
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What is On-the-job-training?
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What is Trade School?
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What are Certifications?
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Who is an Entrepreneur?
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What does Cash-flow mean?
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The academic and financial choices you make after high school could affect your life for ______ years.
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What should you do when evaluating which college to attend?
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Study Notes
Credit Score & Debt Management
- FICO Score derives from factors like type, duration, and new debt.
- Debt Snowball method involves paying off debts starting from the smallest to the largest.
- Credit Score indicates risk level of not repaying borrowed money.
- Bankruptcy remains on credit report for 10 years; negative information removed after 7 years.
Loan Types & Mortgages
- A 15-Year Fixed-Rate Mortgage is the most economical choice for home purchasing.
- Down payment for a mortgage should be at least 10%.
- Secured Loans require collateral; Unsecured Loans are based on creditworthiness alone.
- APR reflects the annual cost of borrowing money.
Financial Myths & Realities
- Lottery Myth: gambling won't make you wealthy.
- Credit Card Myth: approval for a credit card does not signify financial success.
- "Upside-down" refers to owing more on an item than its market value.
Student Debt & Financial Aid
- Student loan debt exceeds $1 trillion in the U.S.
- Average student loan repayment period is 10 years.
- 66% of college graduates incur student loan debt during their studies.
- FAFSA needs to be filed yearly to assess financial aid eligibility.
- Scholarships and Grants are forms of financial aid that do not have to be repaid.
Education Options & Opportunities
- Community Colleges offer two-year degrees and are state-supported.
- Trade Schools provide vocational training without general education requirements.
- Work Study programs enable part-time jobs for college students.
- Certifications can enhance job qualifications and can often be obtained at low or no cost.
Financial Literacy & Future Planning
- Cash flow principles emphasize living within financial means.
- Choices made post-high school can impact financial situation for up to 40 years.
- Comparison shopping is recommended when selecting a college to ensure value for money.
Studying That Suits You
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Description
Test your knowledge of key concepts from Dave Ramsey's teachings in Chapters 4 and 5. This quiz includes important financial terms like FICO score and strategies for managing debt effectively. Prepare to enhance your understanding of personal finance fundamentals.