Dave Ramsey Chapters 1-5, 9 & 13 Review

Front

Refers to all the money decisions a person or family must make in order to earn, budget, save, and spend money over time. These choices involve planning for emergencies and for the future.

Back

Personal Finance

Front

Personal finance is about _______% behavior and _______% head knowledge.

Back

80% behavior and 20% head knowledge.

Front

A measurement of the total dollar value of a person’s or business’ assets minus liabilities is called:

Back

Net Worth

Front

A liability can be described as:

Back

Money you owe; a debt

Front

The First Foundation is:

Back

Save a $500 emergency fund

Front

It is impossible to save money when you have a small income.

Back

False

Front

Which of the following would be a good reason to use money out of your emergency fund?
I need a vacation at the beach.
The jeans that I really want are on sale this week, but I don’t have enough money on hand to get them.
The transmission went out in my car.
My friend needs to borrow money from me so that she can go the concert with us this weekend.

Back

The transmission went out in my car.

Front

Which of the following allows invested money to grow over time?
Options:
Compound Interest,
Premium payments,
Taxes,
Inflation

Back

Compound Interest

Front

The condition of having unlimited wants but limited resources is known as:

Back

Scarcity

Front

A plan for spending is called a(n):

Back

Budget