Dave Ramsey Chapter 1 Test Prep

Front

What is the term for money owed to another person or company?

Back

Debt

Front

What encompasses all of the financial decisions an individual or family must make about their money?

Back

Personal Finance

Front

What is it called when the dollar value of a person's assets is greater than the dollar value of their liabilities?

Back

Positive Net Worth

Front

What is the additional cost a lender charges for borrowing their money?

Back

Interest

Front

What do we call anything that is owned by an individual or family, including money, investments, collectibles, autos, etc.?

Back

Asset

Front

What is the term for the percentage of interest charged on a loan or earned on an investment?

Back

Interest Rate

Front

What is the financial term for obligations or debts that an individual or family owes to others?

Back

Liabilities

Front

What is the first foundation in Dave Ramsey's financial principles?

Back

Save $1,000 for a starter emergency fund.

Front

What is the term for a financial plan that outlines an individual's or family's income and expenses?

Back

Budget

Front

What is the concept of living within one's means and not spending more than one earns?

Back

Financial Discipline