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WorksheetsRamsey Classroom Review 2025
Total questions: 87
Worksheet time: 57mins
Emma wants to gain an understanding of her personal finances. She should know . . .
Your financial goals
Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals
How much income you have
Your investment portfolio and your financial advisors’ contact information
Avoiding debt can give you financial peace and a sense of hope for the future.
True
False
Nora is trying to manage her monthly budget. Why is tracking her expenses throughout the month important?
It allows her to delete categories she doesn’t like.
It gives her insight into whether she’s sticking to the budget she set.
It helps her pull money from her savings to spend in other categories.
It really isn’t that important in the long run.
Why is budgeting so important?
It’s a good way to make sure all your money is spent by the end of the month.
It helps you figure out the best way to justify purchases that maybe aren’t necessary.
It gives you control of your money and sets you up for financial success in the future.
It helps you brush up on your math skills.
James has been working hard and earning money. The main reasons he should save his hard-earned money are so he can . . .
Cover emergencies, pay cash for large purchases, and build wealth
Afford for your dream home, buy your dream car, and go on your dream vacation
Buy gifts, donate to charities, and build up a college fund for your kids
Invest, indulge, and influence
What is The First Foundation?
Open a checking account.
Save a $500 emergency fund.
Build wealth and give.
Pay cash for college.
Emily's monthly rent payment is an example of a variable expense.
True
False
The first priority in your budget should be _________.
Saving
Entertainment
Traveling
Shopping
Caleb and Emily both opened savings accounts at their local bank. Why do these accounts earn interest?
Because you deposit money, adding to your principal each month
Because the bank pays you for the use of your money
Because of inflation
Because those accounts always have great interest rates
Which two habits are the most important for building wealth and becoming a millionaire?
Working a high-paying job and relying on a trust fund
Investing into the right stocks and using a private CPA
Consistently investing money and giving it time to grow
Always paying off your credit card on time and putting extra money into a retirement account
When Kendyl buys with credit, she typically spends more than she would with cash or a debit card.
True
False
Abigail is considering a career in healthcare and decides to spend a day job shadowing a nurse at the local hospital. Job shadowing is a great way to gain experience in a career field.
True
False
Brenden and Sara are planning to fund their education by finding the right mix of _________, _________, and _________. How can they achieve this?
Personal savings; investments; stocks
Scholarships; trust funds; federal aid
Work; loans; cash
Cash; loans; grants
Grants; scholarships; work
James is considering taking out a student loan to pay for his college tuition. Are student loans a type of “good” debt?
True
False
You need to track everything that involves money, including . . .
Your clothing budget for the month
Debit card purchases, third-party app transactions, and ATM withdrawals
All of the sales that are currently happening
The latest retail store credit card offers
Izabell and Ethan are discussing how insurance works. Izabell explains that insurance helps you transfer the _________ from your bank account to the insurance company.
Money
Responsibility of paying normal bills
Documents
Risk
Zoe, an American citizen, earns an income from her job. Each year, she must file a _________ to comply with federal regulations.
Federal tax return
driver's license
passport application
voter registration form
James is planning to move to a new city and is concerned about the cost of living there. What does cost of living refer to?
How much of your monthly income is budgeted specifically for your rent or mortgage
The average cost of the basic goods and services needed to maintain a certain standard of living
The level of wealth, comfort, material goods, and necessities available to a group of people
How wealthy or poor you are at the time of purchasing your first home
Jack and Ethan are considering renting an apartment together. A leasing contract . . .
Can be terminated at any time without any fees or penalties
Is a legal document that allows the renter (tenant) to use the property for a period of time
Is something a roommate owes taxes on when they move in with the current renter
Should be signed immediately, even before reading it
When Haylee and Sawyer both invest in a mutual fund, they are contributing to a pool of money that will be . . .
Given to hundreds of local charities in your area
Invested in a mix of stocks, bonds, and money market accounts
Taxed based on each individual investor's annual salary
Put into a separate savings account for your children to inherit someday
________ is key when it comes to compound growth.
Time
Money
Attitude
Roth IRA
Why is personal finance dependent on behavior?
It is influenced by external economic factors.
It is solely based on income levels.
It is determined by individual spending and saving habits.
It is controlled by government policies.
How does planning and saving for your future help you build wealth?
It reduces financial security.
It increases debt.
It allows for investment and growth.
It limits financial opportunities.
Haylee and Joey are discussing how credit card companies make money. List three ways the credit card industry makes money off of customers.
Offering free services
Charging interest on balances
Providing unlimited credit
Waiving all fees
Izabell and Jack were discussing how a thief might commit card fraud. Can you list some examples they might consider?
By using secure payment methods
By stealing card information
By reporting lost cards immediately
By using cards responsibly
Ethan is considering buying a new gadget. What are two questions he should ask before making the purchase?
Is this a need or a want? Can I afford it?
Is it on sale? Do I have a coupon?
Will it make me happy? Is it popular?
Is it expensive? Is it trendy?
Benjamin is trying to manage his finances better. Describe the process he should follow to balance his checking account.
Ignore all transactions and hope for the best.
Compare his records with the bank statement and adjust for discrepancies.
Spend until the account is empty, then start over.
Only check the balance once a year.
Izabell received her paycheck and noticed two different amounts listed: gross income and net income. Explain the difference between gross income and net income.
Gross income is after taxes; net income is before taxes.
Gross income includes bonuses; net income does not.
Gross income is before deductions; net income is after deductions.
Gross income is what you save; net income is what you spend.
____________________ income is the money a person has after taxes and deductions (net pay).
disposable
discretionary
fixed
variable
Select the best definition of an IRA.
An IRA is a tax-advantaged investing tool set up by individuals for retirement savings
An IRA is a retirement plan offered to you by your employer
An IRA is an investment type with a fixed rate of return
An IRA is a retirement savings plan that guarantees a fixed rate of return
Anika and Mia are discussing the stock market. Anika says, "I think we are in a BULL market because the stock market is rising and the economy is booming." Mia replies, "No, I believe we are in a BEAR market because the market is declining and the economy is receding." What is the difference between a BULL and a BEAR market?
A BULL market is when the stock market is rising and the economy is booming, while a BEAR market describes a declining market and a receding economy
A BULL market is when there is a decline in the stock market and the economy is receding, while a BEAR market describes a rising market and a booming economy.
When comparing and contrasting savings and investing, which of the following is true?
Saving and investing both help a person stay at their current level of living.
Savings provides the foundation for financial security, while investing is used to pay for long-term goals, such as retirement.
Savings is less liquid than investing
Savings is used to pay for long-term goals, while investing is used to pay for emergencies.
Luna recently faced an unexpected car repair. What is the primary benefit of having an emergency fund in such a situation?
To lend money to friends and family
To pay for luxury vacations
To cover unexpected expenses without going into debt
To invest in high-risk stocks
Which of the following is a key factor in determining your credit score?
The number of credit cards you own
Your payment history and credit utilization
Your favorite shopping destinations
The amount of cash you have in your wallet
What is the purpose of diversifying your investment portfolio?
To ensure all investments are in the same industry
To focus solely on one type of investment
To spread risk and potentially increase returns
To increase the risk of losing all your money
While shopping at the mall, Hannah suddenly decides to buy a pair of shoes she hadn't planned on purchasing. What is this an example of?
Buying anything without planning to do so in advance
Buying something you plan on buying
Buying something unexpected
Buying anything for free
After buying something often times people feel guilty. This is called...
Buyers Beware
Buyers Remorse
Buyers Remote
Buyers Guilt
Mia is buying a used car from a private seller. What phrase in Latin advises her to be cautious and aware of potential risks?
Cat Emperor
Cave Empty
Empeat Cavtor
Caveat Emptor
Marketers ________ us that we don't belong
Convince
Persuade
Dissuade
Companies know you're more likely to buy when you're _______.
Happy
Afraid
Sad
Hungry
Olivia is trying to manage her credit card payments. She notices that minimum payments cover her____, but she's barely making a dent in the ________.
first payment/purchase
interest charges/actual debt total
Credit card companies love this (minimum payments) because...
it keeps you in debt for years.
you pay everything up front.
you make a new friend.
everybody does it.
When a lender offers you credit...they're offering you...
the power to influence people.
the opportunity to borrow their money.
the chance to win a vacation!
the ability to write a novel.
David is planning to give a generous gift to his friend. A gift tax doesn’t kick in unless you’re giving away serious money (think over ________________).
$10,000
$15,000
$20,000
$25,000
Consumption Tax
A tax on the sale of property, such as real estate or stocks
a tax on the purchase of goods or services in the form of sales tax, excise tax, and other special taxes
A tax on the income of individuals or businesses
A tax on the import or export of goods or services
Sales Tax
A tax on income that goes to the federal government
A fee charged for the use of public services
a tax on goods and services that goes to a state or local government
A fee charged for the purchase of certain products or services
Personal finance is 20% head knowledge and 80%___________.
Motivation
Good intentions
Attitude
Behavior
Match the following
Bandwagon
"Don't be left out."
Repetition
"Call 1-888-888-8888. 1-888-888-8888 call now. That's 1-888-888-8888."
Emotion
"Look into the eyes of this starving puppy."
Nostalgia
"It tastes just like Grandma's cooking."
Your emergency fund should go in your checking account, NOT a money market account.
True
False
What does living paycheck to paycheck mean?
Living paycheck to paycheck means they don't save any of their paycheck
When a person chooses to not deposit their paycheck
Living paycheck to paycheck is when someone eagerly awaits their next paycheck to plan for the month's expenses
Living paycheck to paycheck means someone who is not happy unless its payday
If your assets total more than your liabilities, you will have a(n)______net worth.
Unknown
Equal
Positive
Negative
A money principle to keep in mind is to live on_________you make.
Less than
The same as
More than
Exactly 20% below what
You should always make sure you have a...
Credit Card
Credit Score
Budget
Second Job
What are the Four Walls?
Utilities, college fund, restaurants, and car insurance
Cell Phone bill, car insurance, shelter, and money for movies
Food, utilities, transportation, and college fund
Food, utilities, transportation, and shelter
How often should you create a budget?
Daily
Weekly
Monthly
Yearly
HOw many months does it usually take for your budget to start working as a budget should?
One
Four
Five
Three
You should start investing money to build wealth....
As soon as you have extra cash
Once you have a fully funded emergency fund
Once you're out of college, living debt-free, and have 3-6 months of living expenses saved
When the stock market is performing well
As an effective marketing strategy, companies pay a lot to...
Choose a brand similar to theirs
Get you to dislike their branding
Leave you confused with how their product works
Have their products strategically placed in stores
How you spend and give your money...
Can't be changed
Is the most important thing in life
Is a reflection of your personal values
Doesn't matter until you're 40
The debt snowball method involves...
Waiting until the winter months to begin paying off debt
Paying off debts from largest to smallest
Pooling together money from other people to pay off your debt
Paying off debts from smallest to largest
Once you turn 18, you should regularly check your credit report...
For errors of signs of identity fraud
To keep an eye on your credit score.
To make a plan for improving your credit score.
Only if you have a credit card.
Leasing a car is a method of financing where someone__________.
Never pays any interest or fees
Is paying off two or more vehicles at one time
Makes monthly payments on but does not own the vehicle
Does not have to pay any taxes on the vehicle for the first six months
Banks and lenders use credit scores to determine...
The likelihood that someone is able to repay debt
How much collateral someone has available to put up for a loan
A person's financial responsibility
How successful someone is
The widespread financial insecurity of Americans is primarily because:
The incomes of Americans are low.
Government programs are unavailable to help people when they are disabled or experience unemployment.
Most Americans save a high proportion of their income.
The saving rate of Americans is low and many borrow in order to spend more than they earn.
The biggest difference between a debit card and a credit card is
Credit cards allow you to make online purchases; debit cards do not
A debit card only allows you to use the money you already have in the bank
A credit card shows the world that you are a grown-up with money
Credit cards can be used to rent cars; debit cards cannot
A fee that a bank, credit card, or other lender charges for the opportunity to purchase something and pay for it over time
Finance rate
Dividend
Interest
Credit
Student loans are dangerous because they can _____ your options on what you want to do in life
Eliminate
Increase
Limit
None of the above
a lessening in value
debt consolidation
debt Snowball
Depreciation
finance charge
foreclosure
An expense, such as a charitable contribution, that can be deducted from one's taxable income
loan term
myth
paradigm
tax deduction
You won't find contentment by just continually buying stuff.
True
False
Why is paying for something in cash a better option than a virtual payment even if it isn't as convenient?
If you make spending less convenient, you're less likely to buy things you don't need.
It's easier to part ways with cash, so you're more likely to overspend.
It isn't a better option. The perks of virtual payments out weigh the downsides.
It helps the store clerk when you use cash.
The key to contentment is grattude.
True
False
Companies use marketing to get your prefrontal cortex off line so you'll be vulnerable to impulse purchases.
True
False
What is the Third Foundation?
Pay cash for your car
Pay cash for college
Save for retirement
Create a monthly budget
SHORT ANSWER QUESTION: How does Murphy's Law ("anything that can go wrong will go wrong") apply to saving money?
When you don't make a plan to save money, you're inviting trouble. So when you run into tough spots, like a flat tire that needs to be replaced, you won't have money saved to cover the issue.
When you don't make a plan to save money, you're ease. So when you run into tough spots, like a flat tire that needs to be replaced, you won't have money saved to cover the issue.
When you don't make a plan to save money, you're inviting trouble. So when you run into tough spots, like a flat tire that needs to be replaced, you kind of have money saved to cover the issue.
character traits and interpersonal skills requiring EQ (emotional quotient) that guide how you interact with others
Soft Skills
Hard Skills
Discovery
Sweet Spot
a widely recognized perception or impression of an individual based on conduct, experience, skills, and actions
Personal Brand
Discovery
Entrepreneur
Mentor
What is the first baby step in Dave Ramsey's 7 Baby Steps?
Save $1,000 for a starter emergency fund
Invest in stocks
Pay off all debt
Buy a new car
What is the second baby step in Dave Ramsey's 7 Baby Steps?
Pay off all debt except for the house using the debt snowball method
Start a college fund for the kids
Invest in the stock market
Buy a new car
According to Dave Ramsey, how much should you save for your emergency fund in Baby Step 3?
3 to 6 months' worth of expenses
1 to 2 weeks' worth of expenses
No need to save for an emergency fund
12 to 18 months' worth of expenses
What is the fourth baby step in Dave Ramsey's 7 Baby Steps?
Pay off all debt using the debt snowball
Invest 15% of your household income into Roth IRAs and pre-tax retirement plans
Buy a new car with the extra income
Start saving for your children's college fund
What does Dave Ramsey advise to do with your mortgage in Baby Step 6?
Stop making mortgage payments
Refinance to a longer term
Take out a second mortgage
Pay off your mortgage early
What is the final baby step in Dave Ramsey's 7 Baby Steps?
Build wealth and give generously
Invest in risky ventures and be stingy with money
Spend recklessly and give nothing
Live on a strict budget and save aggressively
What does Dave Ramsey recommend as the best way to pay off debt in Baby Step 2?
Debt avalanche method
Minimum payments only
Borrowing more money
Debt snowball method
The Five Foundations are:
1) Save a $500 Emergency Fund
2) Get out and stay out of debt
3)Pay cash for your car
4) Pay cash for college
5) __________________________?
Build wealth and give
Retire early
Pay someone else's debt off
Build wealth and be selfish
We all have _____ personalities; We can be spenders, savers, or a little bit of both
different
strange
financial
money
