True/False
Indicate whether the statement is true or
false.
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1.
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Our culture thinks student loan debt is normal and that it's an acceptable
way to pay for college.
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2.
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A four-year degree is necessary regardless of which career you're
entering.
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3.
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The average millionaire reads one nonfiction book a month.
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4.
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When shopping for the best education option, you should narrow down your choice
of colleges to 10 schools or less.
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5.
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The best quality colleges are always the most expensive.
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6.
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You must go to a prestigious school in order for employers to recognize your
talents and strengths.
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7.
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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.
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8.
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You must shop for the best price for your education in the same way you
comparison shop for any large purchase.
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9.
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You'll only need to complete the FAFSA once during your college
education.
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10.
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The academic and financial choices you make in the next few years will affect
the next 40 years of your life.
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11.
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It will cost you less to attend a school in Ohio than a school outside of
Ohio.
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12.
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Every career requires a four-year degree.
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13.
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A master’s degree is earned after a PhD.
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14.
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Private schools are less expensive than public schools.
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Multiple Choice
Identify the choice that best completes the
statement or answers the question.
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15.
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The total estimated student loan debt outstanding (unpaid) is over:
a. | $1 trillion | b. | $10 thousand | c. | $7
trillion | d. | $1 billion |
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16.
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Which of the following is not a good option when it comes to paying for
your education?
a. | Plan ahead | b. | Fill out the FAFSA | c. | Ask your parents to
take out a loan | d. | Get a part-time job |
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17.
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Which of the following are ways that you can invest in yourself?
a. | Find a mentor | b. | Surround yourself with people who have similar
goals and ambitions as you | c. | Read books | d. | All of the
above |
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18.
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Which of the following statements is false?
a. | Millions of people can't afford to make their student loan payment every
month. | b. | Our culture accepts student loan debt as normal and sometimes even refers to it as
good debt. | c. | Debt is owing anything to anyone for any
reason. | d. | A student loan is an award. |
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19.
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Which of the following statements about college
financial aid is false? a. | Many businesses have scholarships for employees' children. | b. | Grants are free
money. | c. | The Free Application for Federal Student Aid (FAFSA) is the first step to receiving
any kind of financial aid. | d. | Scholarships are only for the highest academic
achievers. |
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20.
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You should visit your college's financial aid office if:
a. | Your parents' financial situation has changed | b. | You have any
problems with the financial aid application process | c. | A medical situation has come
up | d. | All of the above |
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21.
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Which of the following statements is false?
a. | On-campus jobs may pay you directly or pay toward your tuition
bill. | b. | Research shows that students who work up to 20 hours a week have the highest grade
point averages. | c. | Research shows that working more than 20 hours a week may affect your grades
negatively. | d. | Students rarely drop out of college due to financial
trouble. |
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22.
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Which of the following is not recommended when you are cash-flowing your
college education?
a. | Live on a zero-based budget. | b. | Attend an out-of-state
school. | c. | Work and save money over the summer months. | d. | Make sure you have
an emergency fund. |
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23.
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The average repayment period for a student loan is:
a. | 5 years | b. | 10 years | c. | 15
years | d. | 20 years |
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24.
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Which of the following statements is false?
a. | On-the-job training often combines a professional trainer, hands -on activities and
formal classroom training. | b. | 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. | c. | An associate's 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. | d. | All high-paying careers require a four-year college
degree. |
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25.
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The First Foundation is:
a. | Pay cash for your car | b. | Build wealth and give | c. | Build a $500
emergency fund | d. | Pay cash for college |
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26.
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The Second Foundation is:
a. | Pay cash for your car | b. | Build wealth and give | c. | Build a $500
emergency fund | d. | Get Out of Debt |
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27.
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The Third Foundation is:
a. | Pay cash for your car | b. | Build wealth and give | c. | Build a $500
emergency fund | d. | Pay cash for college |
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28.
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The Fourth Foundation is:
a. | Pay cash for your car | b. | Build wealth and give | c. | Build a $500
emergency fund | d. | Pay cash for college |
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29.
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Which of the following could be a negative consequence of taking out student
loans?
a. | Not having the freedom to be a stay-at-home parent because of student loan
payments | b. | Having to delay investing and saving for your future because of student loan
payments | c. | Not having flexibility in your career options because of student loan
payments | d. | All of the above |
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30.
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Percentage of college students that graduate with student loans:
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31.
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A wise college plan does not include:
a. | Creating a budget and starting to save now | b. | Shopping around for
the most appropriate, low-cost academic option for your career choice | c. | Scoring well on the
ACT or SAT | d. | Finding the most expensive, prestigious college so that you can impress future
employers |
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32.
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Which of the following is not one of the basics of budgeting?
a. | Pay yourself first by saving | b. | Stick to your budget unless something
unexpected happens | c. | Make it a priority to give | d. | Live on less than
you make |
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33.
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According to the average student loan balance from 2005-2012, the 2005 balance
was approximately _______________ .
a. | $9,000 | b. | $16,000 | c. | $21,000 | d. | $25,000 |
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34.
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According to the average student loan balance from 2005-2012, the 2012 balance
was approximately _______________ .
a. | $9,000 | b. | $16,000 | c. | $21,000 | d. | $25,000 |
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Matching
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a. | associate’s degree | h. | on-the-job
training | b. | bachelor’s degree | i. | entrepreneur | c. | community college | j. | loan | d. | FAFSA | k. | work
study | e. | grant | l. | mentorship | f. | scholarship | m. | good
debt | g. | trade school |
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35.
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A form of federal or state financial aid that does not need to be repaid;
usually given to students who demonstrate financial need.
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36.
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Allows students to learn basic professional skills in two years or less;
typically cut out many of the general courses required by traditional universities.
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37.
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A form that is completed annually by current and prospective college students
to determine their eligibility for financial aid.
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38.
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Money that must be paid back with interest.
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39.
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A two-year government-supported college that offers an associate's
degree.
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40.
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A form of financial aid that does not need to be repaid; usually awarded on the
basis of academic, athletic or other achievements.
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41.
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A money myth that portrays student loans as the only financial option when it
comes to funding one’s college education.
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42.
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Usually a professional trainer serves as the course instructor and uses a
combination of hands-on activities and formal classroom training.
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43.
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A person that starts his or her own business.
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44.
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A developmental partnership through which one person shares knowledge, skills
and perspective to foster the personal and professional growth of someone else.
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45.
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A program that allows students to work part-time while continuing their
studies.
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46.
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An undergraduate academic degree awarded by colleges upon completion of a
course of study lasting two years.
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Essay
Choose only 1 of the 4
questions to answer. Include information learned from this chapter. Your answer should be at least
100 words in paragraph form. Spelling, capitalization and punctuation count.
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47.
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Tiffany loves people.
Throughout high school, she volunteered at the Red Cross. During the summers, she worked at social
service organizations and saved for college. She has two years of college left, and she’s out
of money. She’s going to a state school. Even so, the two-year tab for tuition, room, board and
books is nearly $20,000. She can borrow that sum through low-interest student loan programs. What
would Dave Ramsey advise her to do.
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48.
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Jorge is a junior at a
state university. He’s lived in the dorm for two years but is ready to move off campus for his
remaining college time. After searching online, he found a house with a room for rent for $400 a
month. The only downside is that the house is two miles from campus and Jorge doesn’t have a
car, although he’s wanted one for a long time. He decides that moving off campus is the perfect
reason to buy a car. Jorge has $3,000 in student loans but doesn’t have to start paying them
back until after he graduates in another two years. He decides that he can afford a car payment of
$200 a month. Jorge begins to search for a car and finds a good used one for $5,000. What advice
would Dave Ramsey give Jorge?
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49.
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Maggie is a high school
senior who just received her college financial aid award packet in the mail. While her mom watches,
Maggie excitedly opens the envelope. She sees that she has received grants, scholarships and student
loans. The thought of taking on debt makes Maggie a little nervous. Her mom tells her that student
loans are normal and that she will have more time to focus on studying rather than having to work a
part-time job in college. Is her mom’s advice the same as the advice you’d give her?
Explain what Dave Ramsey’s advice would be.
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50.
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Mark wants to be a web
designer. He recently found out that a local company is providing a certification program in web
design. The program is free and if he does well, the company will offer an entry-level position upon
completion. Mark likes the idea of hands-on learning and has never been excited about college. He
would rather avoid having to sit through the basic freshman and sophomore college classes and go
directly into doing what he loves. This opportunity will allow him to do just that. The only problem
is that his parents think that a four year college education is the only way to secure a good income.
Are his parents right? Explain what Dave Ramsey would advise Mark to do in this
situation.
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