Careers, Salaries, and Lifetime Income — Unit test

Question 34 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

Kevin is in 8th grade and he wants to attend college. He claims he needs to research how much college will cost for his chosen degree and fill out the FAFSA before he can prepare and save for college. Which statement about his claim is correct?

Answer

He needs to know how much of his college expenses will be covered so he knows how much to save.

By filling out the FAFSA and sending it in, he will not have to pay anything because grants and scholarships will cover the costs.

It is never too early to start saving for college. Even if he earns scholarships, he could use the money for other expenses.

It is too late to save for college. His parents should have started a college savings account when he entered kindergarten.

Explanation

Kevin can begin saving for college before he knows the exact cost or financial aid he may receive. Scholarships can help pay tuition, but they may not cover every expense, and savings could help with other college costs. So “It is never too early to start saving for college” is the correct statement; filing the FAFSA does not guarantee that grants and scholarships will cover everything.

AI-written and checked against the verified answer.

More from this Course

Unit Test

Understanding Checking and Debit Accounts

Quiz

107 verified answers

Topic Test