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Chapter 1 of Ramsey Classroom Flashcards | StudBud
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Chapter 1 of Ramsey Classroom
Chapter 1 of Ramsey Classroom
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Questions
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1
Without any debt, you have the opportunity to _____.
be risky
be selfish
be cautious
be generous
2
It is possible to pay only cash for college.
False
True
3
To gain an understanding of your personal finances you should know
How much income you have
Your financial goals
Where you stand financially, how much income you have, and your goals
Your investment portfolio and your financial advisor's contact information
4
What does living paycheck to paycheck mean?
A person's income is devoted to expenses. Little/no money put into savings.
A situation when you eagerly await the next paycheck to plan for expenses
Not being able to plan past the next payck due to outside circumstances
When a person chooses not to deposit their paycheck.
5
You should make a plan to live on _______ than you make?
10% more
exactly 10% less
less
more
6
Savers have a tendency to be...
Strict with purchases for only themselves
Strict with what they spend except for groceries
Strict with purchases but spend money without a plan
Strict with their money and not spend any of it
7
Personal Finance is ___% behavior and ___% head knowledge.
100, 0
20, 80
80, 20
50, 50
8
Using credit has not always been a socially accepted practice, but it has become ...
A practice used by the wealthy
Necessary for life in America
Less acceptable
Normal in American culture
9
Franklin D. Roosevelt passed the New Deal because of the Great Depression in the 1930's. What was its purpose?
To divide the national budget in half and distribute it
To create a borrowing system within the U.S.
To promote economic recovery and social reform
To alleviate financial concerns with the United Nations
10
Being a spender has many more positives than being a saver
True
False
11
Banks got into the credit business before 1920 because charging exceptionally high interest was LEGAL
False
True
12
You can only be natural saver or spendor. You can't balance both.
True
False
13
Assets minus liabilities equals:
finances
assets
net worth
market need
14
What is the Fifth Foundation
Get out of Debt
Build Wealth and Give
Never use Credit
Save a $500 Emergency fund
15
Something you always need is a...
Debit card
Budget
Credit card
Bundle of checks
16
Making the right choices with your money-managing your money-involves knowing how.......
Consumer decisions will affect your accounts
Earning, budgeting, saving, spending, and giving affect you money
Planning, saving, spending,& investing will define your financial portfolio
To make bank deposits using registers with the appropriate transactions
17
What is financial literacy?
An exchange for goods and services
A successful business
The knowledge of how money works and how to manage it
Bank statements provided with detials about your finances
18
Who is responsible for making decisions to earn, budget, save, spend, and give money over time?
Banks
Good friend
Individual or company
Individual or family
19
When you set financial goals, they should be . . .
Timely, bank-based, specific, and yours
Only time-sensitive
Specific and measurable
Specific, measurable, time-sensitive, yours,and written
20
Your money personality can impact...
Your understanding of bank transactions
What you plan for as an adult
Your financial literacy level
How you handle your money
21
What are The Five Foundations?
A Financial Literacy Technique
A starting point for adults regarding finances
A personal financial plan of action
A common conclusion for debt
22
An important money principle is to _____ and _____ your money.
save; spend
spend; invest
save; invest
save; give
23
After World War I, the demand for products increased, and people began getting credit without loan sharks, so credit…
Was devalued in the marketplace
Was offered at even higher interest rates by loan sharks
Increased so rapidly, loan sharks became obsolete
Started to become more socially acceptable
24
During adulthood, you should...
seek out a financial counselor
keep managing your money as a priority
be cautious about budgeting and planning
have someone you trust help you with all your finances
25
Financial freedom can be achieved by avoiding debt.
True
False
26
What is the best way to avoid running out of money too quickly?
Avoid making any purchases for the next 30 days
make it a habit to plan and set goals for your money
invest in college
put your money in a safe place, like a bank and dont spend it
27
If your assets total more than your liabilities, you will have a(n) _____ net worth.
All of the above
Negative
Positive
Equal
28
What is the first foundation?
$500 Emergency fund
Open a bank account
Build wealth and give
Pay cash for college
