Dave Ramsey Chapter 1 Review

Making the right choices with your money—managing your money—involves knowing how . . .

• 1. Consumer decisions will affect your accounts

• 1. Planning, saving, spending, and investing will define your financial portfolio

• 1. To make bank deposits using registers with the appropriate transactions listed

• 1. Earning, budgeting, saving, spending, and giving affect your money

Using credit has not always been a socially accepted practice, but it has become . . .

• Normal in American culture

• A practice used by the wealthy

• Less acceptable

• Necessary for life in America

Avoiding debt can lead to financial freedom and hope.

• False

• True

What is The Fifth Foundation?

• Build wealth and give.

• Find a financial professional.

• Get out and stay out of debt.

• Pay cash for your car.

You are either only a natural saver or a natural spender. You cannot have a balance of both.

• False

• True

A _____ financial goal takes up to two years to reach.

• Long-term

• Medium-term

• Short-term

• Five-level

Personal finance is 20% _______ and 80% _______.

• Head knowledge; behavior

• Behavior; head knowledge

• Cause; effect

• Reactions; behaviors

Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal.

• False

• True

You should always make sure you have a…

• Credit card

• Direct deposit

• Credit line

• Budget

To gain an understanding of your personal finances, you should know . . .

• Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals

• Your investment portfolio and your financial advisor's contact information

• Your financial goals

• How much income you have