As a single adult, you should. . . .

Keep managing your money as a priority

After World War I, the demand for products increased & people began getting credit without loan sharks BC of this credit

Started to become more socially acceptable

What is the best way to avoid running out of money too quickly?

Make it a habit to plan and set goals for your money.

What is Financail Literacy?

Knowledge& skills needed for people to be informed consumers& mange their $

Franklin D. Roosevelt passed the New Deal BC of the Great Deppression in 1930s. What was the purpose of this program?

To promote economic recovery and social reform

In 1972, what association made borrowing money to attend college much easier than it had been?

The Student Loan Marketing Association (SLMA)

What does living paycheck to paycheck mean?

When a person's income is devoted to expenses leaving little to no money.

Savers have a tendency to be. . .

Strict with their money and not spend any of it.

When you set financial goals, they should be. . .

Specific, measurable, time-sensitive, yours, and written.

Making the right choices with your money-managing your money-involves knowing how. . . .

Earning, budgeting, saving, spending, and giving affect your money.

To gain an understanding of your personal finances, you should know. . . .

Where you stand financially, how much $ you have, set goals & reach them.

What are The Five Foundations?

A personal financial action plan

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Ramsey Classroom Chapter 1

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Questions 30

Answers

1
Using credit has not always been a socially accepted practice, but it has become. . .
Less acceptable
Necessary for life in America
A practice used by the wealthy.
Normal in America culture.
2
To know your net worth, subtract your liabilities from your ------.
Other liabilities
Net Income
Previous Net Worth
Assets
3
Without any debt, you can be outrageously ______.
Selfish
Cautious
Generous
Thrifty
4
If your assets total more than your liabilities, you will have a(n) _____ net worth.
Negative
Positive
Equal
Unknown
5
As a single adult, you should. . . .
Beware of planned and budgeted buying
Keep managing your money as a priority
Seek a financial counselor or advisor by age 25
Haave an accountability partner you trust somewhat
6
You should always make sure you have a. . .
Credit Card
Credit Line
Budget
Direct Deposit
7
After World War I, the demand for products increased & people began getting credit without loan sharks BC of this credit
Was offered at even higher interest rates by loan sharks
Started to become more socially acceptable
Increased so rapidly, loan sharks became obsolete
Was devalued in the marketplace
8
What is the best way to avoid running out of money too quickly?
Put your money in a safe place, like a bank, and not spend it.
You can invest in college.
Make it a habit to plan and set goals for your money.
Avoid making any purchases for the next 30 days.
9
What is The Fifth Foundation?
Get out and stay out of debt.
Fina a financial professional
Build wealth and give.
Pay cash for your car.
10
What is Financail Literacy?
The curriculum provided to college students about finances for their degree
The content provided in bank statements for consumers.
The skills to read financial documents for personal finance classes & goals
Knowledge& skills needed for people to be informed consumers& mange their $
11
Personal finance is all the financial decisions a(n)___must make in order to earn, budget, save, spend, and give money.
Bank
Individual or company
Individual or family
Company or organization
12
Franklin D. Roosevelt passed the New Deal BC of the Great Deppression in 1930s. What was the purpose of this program?
To divide the national budget in half and distribute it.
To promote economic recovery and social reform
To create a borrowing system within the country.
To alleviate financial concerns with the United Nations
13
What is The First Foundation?
Save a $500 emergency fund
Build wealth and give
Open a Checking Account
Pay cash for college
14
A ____ financial goal takes up to two years to reach.
Short-Term
Long-Term
Five-level
Medium-Term
15
Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.
True
False
16
Being a spender has many more positives than being a saver.
True
False
17
In 1972, what association made borrowing money to attend college much easier than it had been?
The Student Loan Approval Association (SLAA)
The Federal Student Approval Association (FSAA)
The Student Loan Marketing Association (SLMA)
The Student Federal Funding Association (SFFA)
18
What does living paycheck to paycheck mean?
A person who can't plan past the next paycheck due to $$ & budgeting issues
When one chooses not to deposit their paycheck, they are living PC to PC.
A description of one who awaits their next paycheck to plan for expenses.
When a person's income is devoted to expenses leaving little to no money.
19
Personal finance is 20% _____ and 80% _____.
Behavior; head knowledge
Cause; effect
Head knowledge; behavior
Reactions; behaviors
20
A money principal to keep in mind is to live on _____ you make.
Exactly 20% below what
Less Than
The same as
More than
21
An important money principle to consider is that you should ____ and ____ your money.
Save; invest
spend; invest
invest; lay out
invest; endow
22
Savers have a tendency to be. . .
Strict with their money and not spend any of it.
Strict with only purchases for themselves
Strict with what they spend their money on, other than groceries
Strict with their purchases but spend monety without a plan
23
When you set financial goals, they should be. . .
Specific, measurable, time-sensitive, yours, and written.
Only time-sensitive
Timely, bank-based, specific, and yours
Specific and measurable
24
It is possible to pay for college with cash.
False
True
25
Your money personality impacts. . . .
How you handle money
Your understanding of bank transactions
Your financial literacy level
What you plan for as an adult.
26
You are eiether only a natural saver or a natural spender. You cannot have a balance of both.
True
False
27
Making the right choices with your money-managing your money-involves knowing how. . . .
Consumer decisions will affect your accounts
to make bank deposits using registers with the appropriate transactions
Earning, budgeting, saving, spending, and giving affect your money.
Planning, Saving, Spending, & investing will define your financial profile
28
To gain an understanding of your personal finances, you should know. . . .
Where you stand financially, how much $ you have, set goals & reach them.
Your financial goals
How much income you have
Your investment portfolio and your financial advisors' contact information
29
Avoiding debt can lead to financial freedom and hope.
True
False
30
What are The Five Foundations?
A financial literac technique
A common conclusion for debt.
A starting point for adults regarding finances
A personal financial action plan

Ramsey Classroom Chapter 1 Flashcards | StudBud