Ramsey foundation chapter 1 definitions

the cost of goods or service

the knowledge and skill necessary for people to be informed about their finances

the percentage of principal charged by the lender for use of their money

The amount that a person earns AFTER taxes. Often called "take-home pay"

money owed to another person or company

A person or organization that uses a product or service

When a person has very little money saved, and most of their income goes to expenses

when the dollar value of a person's liabilities exceeds the value of their assets

the additional cost that a lender charges for borrowing money

Anything that is owned by an individual, including money in the bank or investments

A person or entity that charges borrowers interest rates ABOVE an established legal rate

a plan of action that allows a person to meet their immediate needs and long term goals

What a person earns BEFORE taxes are taken out

a written plan for giving, saving, and spending

the amount by which a person's assets exceeds or falls behind the value of their liabilities

Financial debts or obligations