Consumer Math

Personal finance is (a)   behavior and ​ (b)   head knowledge.

• 80%
• 20
• 100%
• 20%
• 10%

Match the following

• Credit

• A person or organization that buys/uses goods or services

• Loan

• A debt specified by a "note," which specifies the principal amount, interest rate and date of repayment (example: house mortgage or car note)

• Consumer

• An obligation of repayment owed by one party (debtor/borrower) to a second party (creditor/lender)

• Interest

• A fee paid by a borrower to the lender for borrowing money

• Debt

• The granting of a loan and the creation of a debt

Match the following

• Personal Finance

• Any form of deferred payment

• Economy

• A system by which goods and service are produced and distributed

• Irresponsible

• The decisions and actions of an individual or family regarding their money, including spending, saving, budgeting, etc.

• Financial Literacy

• The knowledge and skillset necessary to be an informed consumer and manage finances effectively

• Credit

• Spending money you do not by using credit cards

In Dave Ramsey's Consumer Math Course, what are the "beginning steps for establishing and maintaining financial peace" called?

• The 80/20 rule

• The Five Foundations

• Financial Literacy

• Getting Out of Debt

What is the FIRST foundation of establishing and maintaining financial peace?

• Create an

  Emergency Fund

• Get out of debt

• build wealth and give

• pay cash for your car

Label The Five Foundations

steps for establishing and maintaining financial peace (in the proper order)

e

f

g

d

h

Get out of DEBT

Loan money to FAMILY members only

Pay CASH for your car

Use CREDIT if you don't have cash to pay

Build WEALTH and Give

Save a $500 EMERGENCY Fund

Pay cash for COLLEGE

Spend now and SAVE later

Using credit has always been the American way to purchase products.

• True

• False

What never solves problems but only delays one problem while causing others

• paying with cash

• giving to others

• debt

• saving for a rainy day

At least how much money should a high school student have in an emergency fund?

• $100

• $300

• $500

• $5,000

You should keep your emergency funds in the same account with your expense funds.

• True

• False