Ramsey Classroom Chapter 1 Review

Having a(n) _________means the amount of your liabilities is larger than the value of your assets.

Negative New Worth

__________ means having the knowledge and skills to manage your personal finances.

Financial Literacy

As a(n) ____________, it's up to you to make choices about what you buy and use.

Consumer

__________ is a fee charged for using borrowed money for a purchase.

Interest

American culture and businesses have convinced consumers that ____________ using is normal.

Credit

_____________ to all of the different money decisions you make each day.

Personal Finance

Knowing your __________is the starting point for a financial plan.

Net Worth

A(n) __________ is anything you own that has value.

Asset

When talking about personal finances, Dave Ramsey says, "You will either manage your money or the lack of it will"

Always manage your money

When it comes to your money goals, in order to have clarity and a powerful reminder to keep you on track, you need to

write them down

The percentage of Americans who are living paycheck to paycheck is almost . . .

90%

Personal finance is 20% head knowledge about money. What's the other 80%?

Experiance

Living on less than you make means not . . .

Spending all your money

The total student loan debt owed in the U.S. is currently about how much?

$1.5 Trillion

Almost half of all Americans report having less than _________ in savings.

1,000

The Five Foundations provide a simple ____________ to help you win with money.

Action Plan

List The Five Foundations in order. Explain how they can help you make wise choices with your money.

Save a $500 emergency fund. just in case you have an emergancy

Get out of debt and stay out of debt.

Pay cash for your car. Use the sinking fund approach to buy cars.

Pay cash for college in order to avoid student loan debt

Build wealth and give in order to achieve complete financial well-being