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Ramsey Classroom Ch3 Saving Money Flashcards | StudBud
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Ramsey Classroom Ch3 Saving Money
Ramsey Classroom Ch3 Saving Money
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Questions
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Answers
1
Compound interest is earned at a fixed rate, while_______is an average based on an investment's past performance.
Compound growth
The Fifth Foundation
Interest rate
The principal
2
Which is a reason people do not save money?
they lack discipline
all of the above
they lack focus
they do not set up a budget
3
For Saving you should have?
Goals
Compound interest
Credit Card
Emergency Funds
4
How can someone start saving money?
Sale unused items
Collect loose change on the sidewalk
Place in a piggy bank or open saving account
Start earning a income
5
The best way to build wealth is to start investing early. You should start investing money . . .
Once you have a fully-funded emergency fund
As soon as you have extra cash
out of college, living debt-free & have 3–6 months of living expenses saved
When the stock market is performing really well
6
You'll have less freedom with your money if you . . .
Put money in a bank account
Make less than $35,000
Invest in the stock market
Are paying for things in your past
7
Organizations that use money raised to achieve their goals?
Clarity
Crowdfunding
Pigfunding
Charity
8
It's not IF an emergency will happen, but _______.
How
When
Where
Why
9
What does money work for?
Your neighbor
The guy next to you
The bank
You
10
_______is a millionaire's best friend.
Profit sharing
High returns
Compound growth
Accrued interest
11
Dave's envelope system means that you
put money in for fixed expenses
doesn't work
save money
put money in for variable expenses
12
All of the decisions and activities of an individual or family regarding their money
debt
personal finance
loan
financial literacy
13
Which of the following was NOT a reason to save according to Dave Ramsey?
Emergency Fund
Murphy Law
Wealth Building
Purchases
14
When should you begin saving for retirement?
After age 50
As soon as possible
Before age 50 and not after
15
Interest is the money the principal earns
True
False
16
What is NOT one of the 3 basic reasons to save money?
Purchases
Wealth Building
Food
Emergency Fund
17
What percent of Dave Ramsey's investments are in individual stocks?
0%
50%
100%
25%
18
A process of creating a plan to spend your money.
Balance
Budget
Check Register
Balance Sheet
19
Saving and Investing is a ______ term goal.
Short
Mid
Long
Past
20
Which of these is not a key to saving money?
your income
discipline
focus
making saving a habit and a priority
21
What is the amount Dave Ramsey says that a teen should have as an Emergency Fund?
$1000
$5000
$250
$500
22
Dave Ramsey believes debt is:
dumb
smart
23
Dave says you must include FUN in your budget!
True
False
24
You should budget in this order: giving, savings, spending.
False
True
25
Once you have a $500 emergency fund, you should . . .
Use the money to pay for health insurance
Invest it in the stock market to grow your money
Save it until you have an emergency
Start putting it toward debt
26
What is a money Emergency
Broken Car
Ripped School Book
Ripped Pants
Dirty Shoes
27
47% of Americans have less than $1,000 saved for a(n) .
Car
Retirement fund
Emergency
New smartphone
28
Debt is a tool to use to make you wealthy.
True
False
29
The first step you should take when you want to make a large purchase is . . .
Get a new credit card
Ask your parents to loan you the money with low interest
Sell something and use the proceeds
Decide how much you'll need to save & the time frame you want to save it in
30
You can have the life you want by learning about saving, spending, and investing by using ....
Money Market Accounts
Inflation
Extended Warranties
Personal Financial Planning
31
According to Dave Ramsey you should start investing once you have your college education funded
False
True
32
Which two habits are the most important for building wealth and becoming a millionaire?
Investing into the right stocks and using a private CPA
Consistently investing money and patience to give it time to grow
paying off ur credit card on time & put extra money into retirement act
Working a high-paying job and relying on a trust fund
33
What was the analogy Dave Ramsey used when it came to wealth building?
Wealth building is a marathon, not a sprint
Wealth building takes time and patience
Wealth building is difficult but possible
Learning to save your money can save you!
34
Which of the following is
NOT
one of the three basic reasons for saving money
large purchases
build wealth
emergency fund
have money available to buy clothes
35
The only place you should keep your emergency fund money is..
A Roth IRA
An envelope in a safe place
A safe in your bedroom
A savings account or money market account.
36
Percentage paid to a lender for the use of borrowed money.
interest
sinking fund
savings account
compound interest
37
A plan for saving and spending your money is called a __________.
Budget
Debt Reduction
Debit
Money Guide
38
If you really want to save money, you've got to . . .
Fly economy class
Invest in a Roth IRA
Live on less than you make
Have a financial advisor
39
What amount does Dave Ramsey recommend to have in an emergency fund?
$1,000
$500
$100
$2,000
40
Why do some accounts, like savings accounts at your local bank, earn interest?
Because of inflation
Because you deposit money, adding to your principal each month
Because those accounts always have great interest rates
Because the bank pays you to use your money
41
According to Dave Ramsey, for most people, a fully funded emergency fund will be about
$5,000-10,000 or three months living expenses
$10,000-15,000 or six months living expenses
$3,000-5,000 if you are a student
$1,000 if you are in high school
42
What would Dave Ramsey say about saving for high school students?
pay yourself first
all the above
be diligent
start small
43
Dave Ramsey was always rich.
true
false
44
Dave Ramsey thinks you should use credit cards
True
False
