Module 7 Terms

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Across
  1. 8. Mental shortcuts relying simple rules of thumb to aid in decision making; in financial decisions, however, heuristics may not be reliable in leading members to the wisest choices.
  2. 9. Deeply held principles on standards of behavior, a judgment of what is important in life; the tools people use to make rational judgments about important aspects of their lives, including their financial priorities.
  3. 10. Investment plans, named after Section 529 of the Internal Revenue Code and administered by state agencies and organizations, that allow parents and grandparents to save for the future education expenses of the children named as beneficiaries.
  4. 11. A detailed report of an individual’s credit history prepared by a credit bureau and used by a lender to determine a loan applicant’s creditworthiness.
  5. 12. Excessive acquisition of material goods and inability to dispose of those goods.
  6. 14. Lying about or attempting to hide the true state of the family’s finances from one’s spouse or partner.
  7. 16. Application that must be completed by students and their parents to determine whether they qualify for federal grants, loans, and work-study programs; most colleges and universities use the information on these forms to make their financial aid decisions as well.
  8. 17. Savings accounts for low income individuals in which participants’ savings are matched by federal, state, or local government sources with the aim of supporting greater financial security; participants save for specific goals, such as buying a home or starting a business, and receive financial education as part of the program.
  9. 18. Rule of thumb for paying for college; typically, one-third of tuition and room-and-board is covered family and individual savings, one-third is paid for through grants and tax benefits, and one third is financed through student or family loans and/or out of pocket.
  10. 19. Perceived need for secrecy about the state of one’s financial affairs, which may lead to problems with personal relationships as well as deepening financial troubles.
  11. 20. Feeling compelled to continue a habit or practice that is psychologically or physically habit forming to the point that cessation may cause severe trauma; some addictions, such as alcoholism or drug dependence, cause physical harm, and all addictions typically produce a downward spiral of negative effects on an addict’s home and work lives and finances.
  12. 22. Belief that money is synonymous with happiness and success; dysfunctional responses of money worshippers may include workaholism and compulsive hoarding, gambling, or spending.
  13. 23. A behavior in which people choose not to open their account statements and credit card bills to avoid thinking about their money troubles.
  14. 25. System of dividing property in divorce, observed in 11 states, in which all belongings are classified as either separate property owned by one spouse or community property acquired during the marriage and held equally by both spouses; at divorce, community property is generally divided equally between both parties.
  15. 26. Notification in response to submission of the Free Application for Federal Student Aid (FAFSA) that informs students of their expected family contribution and eligibility for federal grants, loans, and other forms of aid.
  16. 27. Federal income tax credit of up to $2,000 for qualified education expenses; since many undergraduate students and their parents claim the American Opportunity Credit for their first four years of college, the Lifetime Learning Credit is more often claimed by graduate and part-time students.
  17. 28. Education loans available to students and their parents from credit unions, banks, and other lenders affiliated with their colleges; unlike federal student loans, private loans are subject to credit reviews and are typically offered at higher rates.
  18. 29. Association of wealth with self-worth, a dysfunctional view of money that emphasizes materialism.
  19. 30. Student loans available to graduate or professional degree students and parents of dependent undergraduate students through colleges participating in the federal Direct Loan Program.
Down
  1. 1. Excessive, repetitive purchasing that may be difficult to control and result in serious financial problems; at its extreme, this behavior is described as a shopping addiction.
  2. 2. The steep decline in economic activity in the United States from 2007 through 2009, generally considered the largest downturn since the Great Depression of the 1930s.
  3. 3. Incentive program to encourage members to save by offering a chance to win a cash prize for every deposit they make during a set period.
  4. 4. Calculation by the Office of Federal Student Aid of the dollar amount students and their families are expected to pay for a college education based on the information submitted in their Free Applications for Federal Student Aid.
  5. 5. Specialized accounts that permit parents to save up to $2,000 per year for future education costs for K-12 schooling, college, and education for people with special needs.
  6. 6. Dysfunctional response to personal finances based on the view that money is evil or undeserved; “avoiders” see money as a source of fear or disgust and avoid earning, saving, or spending it.
  7. 7. Loans underwritten by the federal government at a lower-than-market interest rate and awarded based on financial need, typically without a credit review or cosigner; the government pays the interest on the principal on Direct Subsidized Loans as long as students are enrolled at least half time. Direct Unsubsidized Loans are another form of federal education loans available to undergraduate and graduate students without the requirement to demonstrate financial need; interest on these loans accrues while students are in school.
  8. 13. System of dividing property in divorce, observed in 39 states, in which the judge is charged with dividing marital property fairly and equitably, but not necessarily 50-50.
  9. 15. Federal income tax credit of $2,500 per student annually for up to four years of postsecondary education tuition and course material expenses for families who meet income guidelines.
  10. 21. Compulsive buying divorced from need and the limits of one’s personal finances; sometimes referred to as oniomania.
  11. 24. Earning interest on interest that remains in savings accounts, which increases the return on savings; compounding also applies to loans, so that paying off loans more quickly reduces total interest paid.