Personal Finance Unit 2

Which of the following is not recommended when you are cash-flowing your college education? Attend an out of state college
What concept is best explained by the statement, “money spent here cannot be spent there.” Opportunity costs
Identify which marketing tactic companies are using to compete for your money: reputation for holding its value. Product positioning
Which of the following statements is false Under FCRA consumers are allowed to receive one free credit report every 5 years.
Which of the following is not a common marketing strategy Making the customer do product research
Which of the following is false A student loan is an award
A wise college plan does not include what Finding the most expensive, prestigious, colleges so that you can impress future employers
Which of the following is the most cost efficient way for purchasing a home The most ideal way is 100% down, if that is not an option, you should get no more than a 15 year, fixed rate mortgage with a 10% down payment
The average repayment period for a student loan is 10 years
The purpose of advertising is to Persuade the customer, informed the consumer, tease the consumer
Which of the following is not a factor in determining a FICO score Paying cash for all purchases
Feeling regret or concern after making large purchases Buyer’s remorse
“Caveat emptor” means Buyer beware
Which of the following is not a marketing tactic Bandwagon
Which of the following is not a type of product positioning Size
The average millionaire reads 1 book a month
How often does the FASFA need to be completed Once a year
What is not an example are of free money Student loans
Which of the following is an example of ways to lose Interest, depreciation, payments
What is the only thing measured in the FICO score Debt
What type of crime is identity theft and check fraud White collar
What are the four marketing tactics Personal selling, repetition, product positioning, financing
Is it a good idea to borrow money from a relitave to get out of debt or to pay for college? No
What does your credit score measure Your ability to get out of debt
If you don’t use credit, do you have a FICO score? No
Paycheck garnishment A court ordered attachment that allows a lender to take monies owed directly from a borrower’s paycheck only allowed as part of a court judgement
What do studies show about using cash instead of a credit card? It is easier to spend money using a credit card than handing over cash
Under FRCA, how often can consumers obtain a free credit score? Once every year
What does research show about working during college and do work-study programs sometimes pay directly towards your tuition That students that work twenty hours a week have the highest grade point averages of any type of student in college because they often develop good time-management skills
What is the FAFSA Free Application for Federal Student Aid, they can give financial aid
Develop power over purchase with these 5 steps 1. Wait overnight the time to consider whether it is a need or a want. And make sure you’ve budgeted for it! before making a purchase. Take2. Consider your buying motives stuff equals contentment sometimes get happiness and fun confused. You buy fun, but you can’t buy happiness. Happiness is where you are right now. Claim it for yourself! . No amount of or fulfillment. People and 30 confused.3. Never buy anything you do not understand. Particularly financial products like insurance or investments.4. Consider the “opportunity cost” which means that money spent here cannot be spent there. Whenever you make a choice, you must pass up other opportunities. Take your time and make the right decision. cost” of your money—5. Seek wise counsel married should find an accountability partner—someone with whom you can discuss big purchases. Once you are married, you should seek the counsel of your spouse. . Young adults who are not yet
Product positioning Brand recognition, color, shelf positioning, packaging
What is opportunity cost? The mental and physical cost of purchasing an item
A significant purchase is a purchase over $300

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