Financial Literacy for College Students

Question 1

What is the typical interest rate range for a federal student loan?

Accepted Answer

4% to 7%

Question 2

What’s the term for saving a portion of your income for future goals, like retirement?

Accepted Answer

Saving

Question 3

What’s a good way to avoid overspending as a college student?

Accepted Answer

Create a budget and stick to it

Question 4

What’s the best way to save money on textbooks?

Accepted Answer

Rent or buy used textbooks

Question 5

What is one way to avoid credit card debt during college?

Accepted Answer

Only use credit cards for emergencies

Question 6

What’s the term for the interest on a student loan that starts accruing before you graduate?

Accepted Answer

Capitalized interest

Question 7

Which of the following is an example of a fixed income for a college student?

Accepted Answer

Financial aid or scholarships

Question 8

What should you focus on first when creating a personal budget as a college student?

Accepted Answer

Fixed expenses like rent and utilities

Question 9

What is the term for money you receive after working at a job?

Accepted Answer

Salary or wage

Question 10

What is the purpose of a credit score?

Accepted Answer

Evaluate your financial history and predict your loan payments

Question 11

What does "living paycheck to paycheck" mean?

Accepted Answer

Spending all the money you earn before your next paycheck

Question 12

What’s the maximum amount a student can contribute to a 529 college savings plan each year?

Accepted Answer

It depends on the state

Question 13

Which of these is an example of a variable expense for a college student?

Accepted Answer

Grocery shopping

Question 14

What is the purpose of having a checking account?

Accepted Answer

To store money for everyday spending

Question 15

What is an emergency fund?

Accepted Answer

Money saved for unexpected expenses like car repairs or medical bills

Question 16

What should you do if you get a credit card?

Accepted Answer

Use it responsibly and pay it off every month

Question 17

Which of the following is a common reason college students take out student loans?

Accepted Answer

To pay for tuition and fees

Question 18

What’s the term for the amount of money you owe on a credit card or loan?

Accepted Answer

Balance

Question 19

Which of the following is an example of a short-term financial goal for a college student?

Accepted Answer

Building an emergency fund

Question 20

Which of the following is NOT typically included in the cost of attendance for college?

Accepted Answer

A laptop for personal use

Questions 20