Dave Ramsey Chapt. 2 Review

The persistent rise in the cost of goods and services.

• Economy

• Uprising

• Inflation

• Deflation

Save a $500 emergency fund.

• the Fourth Foundation

• the Third Foundation

• the Second Foundation

• the First Foundation

The five steps to financial success.

• Five money myths

• Five banking steps

• Five Foundations

• None of the above

Interest paid on interest previously earned.

• simple interest

• compound interest

• percentage interest

• none of the above

Money today has different buying power than the same amount of money in the future.

• simple interest

• compound interest

• principle

• time value of money

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

• credit card

• principal

• savings rate

• interest rate

Why is having a fully funded emergency fund so important when it comes to your financial well-being?

• As long as you have a good-paying job, you really don't need an emergency fund.

• The purpose of an emergency fund is to set money aside for unexpected financial emergencies and to provide a sense of financial security.

• The purpose of an emergency fund is to have money set aside for large purchases, like vacations.

• None of the above

Which of the following is a reason that people don't save money?

• They lack focus

• They do not live on a budget

• They lack discipline

• All of the above

Which of the following is a consequence of spending more than you make?

• A cycle of debt

• Stress

• Missed opportunity to save and invest

• All of the above

Although the majority of Americans think budgeting is important, about _____of Americans actually use a budget.

• 75%

• 50%

• 23%

• 35%