Dave Ramsey Chapter 2 Review

Saving money over time for a large purchase

• Savings Account

• Sinking Fund

• Checking Account

• Interest Bearing Account

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.1

CCSS.7.NS.A.3

CCSS.7.RP.A.3

Which of the following is not one of the three basic reasons for saving money

• Large Purchases
• Have money available to lend to friends
• Emergency Fund
• Build Wealth

Instead of borrowing money for large purchases, you should set money aside in a _________ over time and pay with cash.

• Mortgage Fund
• Credit Card Fund
• Emergency Fund
• Sinking Fund

Tags

CCSS.7.EE.B.3

CCSS.7.NS.A.3

The five steps to financial success

• The Five Compliments
• The Five Foundations
• The Five Freedom Steps
• The Five Money Saving Steps

For which of the following should you save

• Purchase
• Emergency Fund
• Wealth Building
• All of the above

 Most Americans avoid the use of credit when it comes to buying big-ticket items like a car or furniture for their home

• True
• False

Tags

CCSS.RL.11-12.6

Percentage paid to a lender for the use of borrowed money, or the percentage earned on invested principal.

• Interest Rate

• Savings Rate

Tags

CCSS.7.RP.A.3

You should save money for three basic reasons: emergency fund, purchases and wealth building.

• True

• False

Tags

CCSS.RI.8.2

CCSS.RL.11-12.2

CCSS.RL.7.2

CCSS.RL.8.1

CCSS.RL.9-10.2

Money set aside and left alone for a ʺrainy day.ʺ

• Emergency Fund

• Savings Account

When you’re older and out of school, you’ll need to grow your emergency fund into a full three to six monthsʹ worth of expenses.

• True

• False

Tags

CCSS.RI.11-12.3

CCSS.RI.11-12.5

CCSS.RI.8.5

CCSS.RI.9-10.3

CCSS.RI.9-10.5