Personal Finance Chapter 5

1.

1 point

Percentage of college students that graduate with student loans:

90

15

66

20

2.

1 point

A wise college plan does NOT include:

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

Scoring well on the ACT or SAT

Creating a budget and starting to save now

Shopping around for the most appropriate, low-cost academic option for your career choice

3.

1 point

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

Fill out the FAFSA

Get a part-time job

Plan Ahead

4.

1 point

Which of the following statements is FALSE?

Students who are looking to learn specific skills can look into free or low -cost certifications found online, at community colleges, or through government-funded programs.

An associateʹs degree is a two-year degree that can offer specialized training and a flexible schedule that allows you to work while you earn your degree.

All high-paying careers require a four-year college degree.

On-the-job training often combines a professional trainer, hands -on activities and formal classroom training.

5.

1 point

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

True

False

6.

1 point

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

True

False

7.

1 point

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

True

False

8.

1 point

The Fourth Foundation is:

Pay cash for college

Build a 500 dollar emergency fund

Pay cash for you car

Make cash rain

Build wealth and give

9.

1 point

The best quality colleges are always the most expensive.

True

False

10.

1 point

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

Not having the freedom to be a stay-at-home parent because of student loan payments

Having to delay investing and saving for your future because of student loan payments

Not having flexibility in your career options because of student loan payments

All of the above

11.

1 point

The average millionaire reads one nonfiction book a month.

True

False

12.

1 point

Which of the following statements is false?

Millions of people canʹt afford to make their student loan payment every month.

Debt is owing anything to anyone for any reason.

Our culture accepts student loan debt as normal and sometimes even refers to it as good debt.

A student loan is an award.

13.

1 point

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

True

False

14.

1 point

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

Find a mentor

Surround yourself with people who have similar goals and ambitions as you

Read books

All of the above

15.

1 point

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

Many businesses have scholarships for employeesʹ children.

The Free Application for Federal Student Aid (FAFSA) is the first step to receiving any kind of financial aid.

Grants are free money.

Scholarships are only for the highest academic achievers.

16.

1 point

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

True

False

17.

1 point

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

True

False

18.

1 point

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

Work and save money in the summer

Live on a zero-based budget

Attend an out of state school far from home.

Make sure you have an emergency fund

19.

1 point

The average repayment time it takes a student to pay off a loan is:

15 years

10 years

20 years

5 years

20.

1 point

You should visit your collegeʹs financial aid office if:

Your parentsʹ financial situation has changed

You have any problems with the financial aid application process

A medical situation has come up

All of the above

21.

1 point

Which of the following statements is FALSE?

Research shows that students who work up to 20 hours a week have the highest grade point averages.

On-campus jobs may pay you directly or pay toward your tuition bill.

Research shows that working more than 20 hours a week may affect your grades negatively.

Students rarely drop out of college due to financial trouble.

22.

1 point

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

True

False

23.

1 point

You should complete the FAFSA every year during your college education.

True

False

24.

1 point

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

$1 trillion

$10 thousand

$7 trillion

$1 billion $1 billion

25.

1 point

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

Pay yourself first by saving

Live on less than you make

Make it a priority to give

Stick to your budget unless something unexpected happens