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Dave Ramsey - Ch. 1 Lesson 5 Flashcards | StudBud
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Dave Ramsey - Ch. 1 Lesson 5
Dave Ramsey - Ch. 1 Lesson 5
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Dave Ramsey - Financial Literacy
Flashcards
15 cards
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Questions
15
Answers
1
What should you do when you need a car, according to the Third Foundation?
Finance it with a loan
Rent it temporarily
Pay cash for it
Lease it for a few years
2
Why is having an emergency fund important, according to Dave Ramsey?
To help pay for vacations
To buy big-ticket items like cars
To handle financial emergencies and avoid going into debt
To invest in stocks
3
What is one way you can get involved in your community?
Give away all your money
Only focus on your own finances
Volunteer at a charity, become a mentor, or visit a nursing home
Spend money at every local business
4
What is the ultimate goal in the Fifth Foundation?
Graduate college debt-free
Pay off all debts
Build wealth and give
Save for an emergency fund
5
Which of the following is part of the Second Foundation?
Pay cash for college
Build wealth and give
Save a $500 emergency fund
Get out of debt and stay out of debt
6
What is a key principle of the Five Foundations?
Spending as much as you earn
Planning ahead and making smart financial choices
Living a lavish lifestyle
Never saving for the future
7
According to the Fourth Foundation, how should you pay for your college education?
Use scholarships and grants only
Pay cash for it
Work part-time while attending
Take out student loans
8
What is one of the main benefits of following the Five Foundations?
Becoming a millionaire overnight
Achieving financial freedom and avoiding financial stress
Buying whatever you want, whenever you want
Relying on credit to fund lifestyle choices
9
What does Dave Ramsey mean by “Build wealth and give” in the Fifth Foundation?
Become financially rich without considering others
Save money for retirement only
Spend as much as you can on luxury items
Create wealth and use it to help others in need
10
What is the main reason why Dave Ramsey encourages people to avoid debt?
Debt limits your ability to build wealth and causes financial stress
Debt is illegal in most places
It is too hard to get credit
Credit cards are always better than cash
11
What is the purpose of having an emergency fund of $500?
To prepare for unexpected expenses
To invest in stocks
To buy something you want
To pay for a vacation
12
Which of the following is the best way to avoid debt?
Save money before making large purchases
Spend only on credit cards
Lease a car every few years
Borrow money from family and friends
13
What is the first step in Dave Ramsey's Five Foundations?
Get out of debt
Pay cash for a car
Save a $500 emergency fund
Build wealth and give
14
According to Dave Ramsey, what should you do when an emergency arises?
Borrow money from a friend
Ignore the situation
Use your emergency fund
Use a credit card to cover the costs
15
What is one action you can take to build wealth according to the Five Foundations?
Always live paycheck to paycheck
Save and invest for the future while avoiding debt
Spend money on the latest trends and gadgets
Rely solely on financial aid for college
