Question

Review Questions

1. Why is it necessary to track all your expenditures if your goal is to spend less to avoid financial problems while in college?

2. What are the warning signs of someone sliding into financial trouble?

3. Name four tips that can help you from falling into credit card debt.

4. What are the key differences among scholarships, grants, student loans and work study programs?

Answer 1

1. Why is it necessary to track all your expenditures if your goal is to spend less to avoid financial problems while in college?

Answer:- Inorder to controll our expenses one shoud know firstly for what things we are expending our money. Expenses for which we are paying our earnings or pocket money are waste and value less these type of waste expenditure shall be avoided as early as possible. In order to know which expenses are waste we should track the record of all our expenditures, so that we can divide those expenditure into worthfull or usefull expenditure and waste expenditure. Waste expenditure shall be avoided and worthfull expenditure shall be continued. So, it is necessary to track all expenditure if our goal is to spend less to avoid financial problems while in college.

2. What are the warning signs of someone sliding into financial trouble?

Answer:- Some of the warning signs of sliding into financial trouble are as follows:-

a) Expending more money for less benefit items

b) Iiving a luxurious life with limited earnigns or pocket money in the initial period.

c) Asking financial help from friend or relative

d) Changes in budget allocation, i.,e choosing less expensive items than the items used before.

These are some of the warnings signs for sliging into financial trouble.

3. Name four tips that can help you from falling into credit card debt.

Answer:- a) Try to avoid using payments through credit card if you have funds with you, either in cash or in bank( use debit card)

b) Controll youself from using credit card by limiting upto some amount of expenses made through credit card.

c) Make complete Credit card bill amount without any balance which increase the interest on remaining balance and leads to debit balance.

d) Avoid credit card transfers, taking advances from bank through credit cards and also irregualr payments of credit card monthly bills.

These are four tips that can help us from falling into credit card debt.

4. What are the key differences among scholarships, grants, student loans and work study programs?

Answer:-

Scholarships:- Schoalrships are the monetary support given to the students. This scholarships are given by way of money to the merit students who have good acdemic performance. Students are not required to pay back these money received in the name of Schoalrships.

Grants:- These grants are also monetary support given to the students by the Federal Government which is a support by way of gift to the students who are in need of money to continue their study. Money received by name of grant is also not required to pay back. But the major difference between Scholarships and grants is

Scholarship :- it is a merit based monetary support Grants:- It is a need based monetory support.

Student loans:- Studen loans are financial support received by way of loan which is to be paid back with some interest. Federal Government Student programe will provided students loan with less interest as compared with other private financial institutions. Loans are to be paid back with interest based on terms and conditions agreement of loan.

Work study programe:- It is a programme which is conducted under Federal work study. It provides students, some part time jobs to earn some money during their under graduation or graduation education period. It is provided to those students who are in need of money to pay for continuing their education.

A small tabular explanation of scholarships, grants, student loans and work study programs:-

Schoalrships	Merit based monetory support to the students
Grants	Need based monetory support to the students
Student loans	Loan for which received amount shall be paid with interest
Work study programmes	Own earnings from doing part time jobs