Spring 2025 Ramsey Test Prep Ch 1

Financial literacy involves having the knowledge and skill set necessary to manage finances effectively.

A money principle to keep in mind is to live on ______________ you make.

As a single adult, you should....

Being a spender has many more positives than being a saver.

Using credit has not always been a socially accepted practice, but is has become...

What is the First Foundation?

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

After WWI, demand increased and people began getting credit without loan sharks. Because of this, credit...

Roosevelt passed the New Deal because of the Great Depression in the 1930s. What was the purpose of the New Deal?

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

What is the Fifth Foundation?

You should always make sure you have a....

Living paycheck to paycheck is when your income is fully devoted to expenses; which leaves little to no money for saving

Avoiding debt can lead to financial freedom and hope.

What is financial literacy?

An important money principle to consider is that you should _____ and _____ your money.

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

Personal finance is 20% ________ and 80% _______.

If your assets total more than your liabilities, you will have a _______ net worth.

To know your net worth, subtract your liabilities from your

It is possible to pay for college with cash.

A long term goal may take more than 5 years to achieve.

Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.

Savers have a tendency to be....

Your money personality impacts....

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

What are the Five Foundations?

Without any debt, you can be outrageously...

Personal finance is about the financial decisions a _____ must make in order to earn, budget, save, spend, & give money.

In 1972, what association made borrowing money to attend college much easier?

A medium-term goal can take between 2-10 years.

You are either a natural saver or a natural spender. You cannot have a balance of both.

A _______ financial goal takes up to two years to reach.