WorksheetsWeek 5 + 6 of Dave Ramsey Financial Principles
Total questions: 20
Worksheet time: 10mins
What is Dave Ramsey’s opinion on credit cards?
They're fine if you pay them off monthly
Avoid them completely
Good for building wealth
Only use them for emergencies
What is a common myth about credit scores?
They are required for renting an apartment
They indicate wealth
They are essential for financial success
They measure how smart you are with money
Why does Ramsey say you don’t need a credit score?
You can’t live without one
It helps get free flights
You can live debt-free and pay cash for everything
It protects you from identity theft
What is a credit report?
A report on your monthly income
A history of your debt and payment habits
A summary of your savings
A form to apply for a loan
Which of the following is a sign someone may be falling into a credit trap?
Paying off credit cards in full every month
Making only the minimum payments
Using cash for all purchases
Having a savings account
Why do credit card companies offer rewards?
To help people save
To teach good money habits
To encourage spending and borrowing
To support community banking
According to Ramsey, what should you use in place of credit for emergencies?
A personal loan
An emergency savings fund
A balance transfer card
Borrowing from friends
What is one emotional impact of being in debt?
Confidence
Stress and anxiety
Excitement
Motivation to earn more
What is Ramsey’s view on building credit to buy a house?
You must have good credit
Get a credit-builder loan
Save and pay cash or use manual underwriting
Finance it through a credit card
What is the danger of using credit for everyday purchases?
It makes budgeting easier
You don’t feel the spending and overspend
You earn cashback
It builds interest in your savings
According to Ramsey, what is the primary tool for building wealth?
Your income
Your credit score
A loan
Inheritance
What is the "power of cash" in purchasing?
It earns rewards
It gives you negotiating power
It builds credit
It helps track spending
What is compound interest?
Earning interest on both the principal and interest earned
The interest you pay on credit
A way to avoid taxes
Interest on home value
According to the readings, when should you start investing?
After retirement
As soon as you're debt-free and have an emergency fund
Once you buy a house
After college
What is a mutual fund?
A savings account
A loan agreement
A collection of stocks and bonds managed by a professional
A government program
What is the Baby Step related to investing?
Save $500
Create a budget
Invest 15% of income into retirement
Get a loan for your business
What is the main reason people don’t build wealth?
Lack of discipline and planning
Bad luck
Low interest rates
Government taxes
What does “live like no one else so later you can live like no one else” mean?
Be famous
Keep up with trends
Sacrifice now for financial peace later
Avoid friends
Why does Ramsey recommend using cash for large purchases?
It's easier
It makes you feel the cost and stay disciplined
It's safer
It builds credit
According to Ramsey, what is the true path to wealth?
Taking risks
Winning the lottery
Discipline, saving, and long-term investing
Using credit wisely
