Ramsey Classroom Chapter 1 Review

a person or organization that uses a product or service

• Consumer

• Personal Finance

• Debt

• Loan Shark

money owed to another person or company

• Debt

• Credit

• Interest

• Personal Finance

the granting of a loan and the creation of debt; any form of deferred payment

• Credit

• Interest Rate

• Loan Shark

• Interest

the percentage of principal charged by the lender for use of its money​​​​​​​

• Interest Rate

• Loan Shark

• Credit

• Asset

person or entity that charges borrowers interest rates above an established legal rate​​​​​​​

• Loan Shark

• Interest Rate

• Credit

• Liabilities

the additional cost a lender charges for borrowing their money

• Interest

• Asset

• Liabilities

• tax

the amount by which the value of a person’s assets exceeds or falls behind the value of their liabilities

• Net Worth

• Asset

• Expense

• Net Income

anything that is owned by an individual, including money in the bank or investments

• Asset

• Net Worth

• Consumer

• Tax

financial debts or obligations

• Positive Net Worth

• Net Income

• Expense

• Liability

the dollar value of a person’s assets is greater than the dollar value of their liabilities

• Positive Net Worth

• Financial Plan

• Gross Income

• Credit