Web Application Chapter 14 page 598

A budget? What is that? The Bank of America Web site has tools to assist students in developing a budget. A college student who learns the importance of budgeting will not have as many financial pressures to deal with compared to a student who does not have a plan. Creating a realistic budget can be difficult. With the interactive budgeting tool located at www.bankofamerica.com, students can calculate their expenses.

To access the Bank of America budgeting tool, start at the Bank of America homepage, www.bankofamerica.com, and select More Tools. From the Education Planning Tools drop-down menu, select Budget Worksheet. Create a budget by following the instructions posted at this site. Print the sheet off when complete and use it as a reference to assist you in your future budgeting.

Another objective of this Web Application is to introduce you to some basic banking terms.

The following terms are used in finance. From Web site www.bankofamerica.com/studentbanking/, select Glossary, and match the terms on the left to the correct definition on the right.

Term
1. Co-borrower	__ Legal entity to whom a lender extends credit for a period of time.
2. Default	__ Combining a borrower's loans by transferring all loans to one holder.
3. Consolidation	__ Signer other than the borrower, who assumes responsibility for the loan if the borrower fails to repay it.
4. Delinquency	__ Failure to make payments on a timely basis or to comply with other conditions of a loan.
5. Borrower	__ Loan on which payment is overdue.

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