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Financial Management (Dave Ramsey: Chapter 3-Saving Money) Flashcards | StudBud
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Financial Management (Dave Ramsey: Chapter 3-Saving Money)
Financial Management (Dave Ramsey: Chapter 3-Saving Money)
30 terms
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#personal finance, #math, #dave ramsey, #Savings
Flashcards
30 cards
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Practice quiz
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Questions
30
Answers
1
Instead of borrowing money to buy something you save it up first. What is this approach called?
Smart approach
The Dave Approach
Sinking fund approach
Murphy's approach
2
A short-term goal is 2 years or less
True
False
3
Instead of borrowing money for a large purchase you should set up a ______ fund.
Emergency
Sinking
Credit Card
College
4
The first thing you should save for is your retirement.
True
False
5
When it comes to managing money, success is about ____ % knowledge and ____ % behavior.
20, 80
60, 40
50, 50
80, 20
6
Which of the following should you save for?
Emergency Fund
Wealth Building
Purchases
All Three
7
_______ ________ is a mathematical explosion. You must start now.
Retirement Savings
Your Income
Compound Interest
Personal Budget
8
When saving for a long-term goal it is smart to invest in the market
False
True
9
A good way to build discipline when it comes to savings is
get a friend to remind you
Set up automatic deposits into your accounts
save whatever you have left at the end of the month
avoid spending money
10
High school students should start with a _____ emergency fund?
$100
$1000
$5000
$500
11
Which of the following is NOT a millionaire myth.
Millionaires inherit their wealth
80 % Millionaires started with nothing
Millionaires all drive fancy cars
Millionaires all have high-paying jobs
12
Ben and Arthur demonstrate which principle
compound interest
Murphy's principle
simple interest
Rule of 72
13
How much money should you have in your emergency fund if you have a credit card bill?
$500-$1000
3-6 months
10% of your credit card balance
No emergency fund until it is paid off
14
Ben and Arthur show what principle of savings?
Both time and rate of return matters
rate of return matters
time invested matters
amount of initial investment matters
15
Americans usually have a ____ savings rate.
Negative
Small
Huge
None
16
Using the sinking fund, how much should you save each month to buy a $3000 car 1 year from now
$100
$250
$300
$500
17
You should put your emergency fund in this type of account.
Home
Bank (Savings Account)
Stock Market
Bank (Checking Account)
18
When should you pay yourself?
When you see if you have enough left
First
After taxes
After paying the bills
19
This law says "whatever can go wrong will go wrong"
That's life law
McAlvey's Law
Ramsey Law
Murphy's Law
20
Which is NOT a key to saving money?
Focus
Your income
Making savings a habit
Discipline
21
How many months of expenses should you have for a fully funded emergency fund?
3-4 months
3-6 months
12 months
1-2 months
22
When saving for a short-term goal it is smart to keep it safe and in the bank
True
False
23
Best way to buy a car is....
Make a sinking fund of $400 a month for 10 months
$500 down, make payments each month
shop for the best interest rate and borrow the money
Get your parents of sign with you on a loan.
24
When it comes to building wealth, what kind of race is it?
Marathon, keep working over a long time.
Sprint, really fast for a short time.
25
What percent of your income should you pay to yourself?
15%
20%
5%
10%
26
Which of the following is NOT one of the five foundations
Pay cash for purchases
Save for an emergency
Use debt when possible
Build wealth
27
Which of the following is the First Foundation
Build wealth
Pay cash for purchases
Get out of Debt
Save an emergency fund
28
Your income level greatly affects your savings habits
False
True
29
Which is NOT a reason to save?
So I can buy stuff
Emergency fund
To pay off debt
To build my wealth
30
A long-term goal is 5 years or greater
True
False
