WorksheetsRamsey Chapter 3 Test
Total questions: 28
Worksheet time: 16mins
Name
Class
Date
1.
What is the first reason you should save money?
a)
To buy expensive things
b)
To prepare for emergencies
c)
To invest in the stock market
d)
To pay for vacations
2.
According to Ramsey, how much money should be in your first emergency fund?
a)
$100
b)
$250
c)
$500
d)
$1,000
3.
What is the third foundation?
a)
Save a $500 vacation fund
b)
Buy what makes you feel good
c)
Pay cash for your car
d)
Build wealth and give nothing
4.
What are the three main reasons people should save money?
a)
Shopping, gifts, hobbies
b)
College, vacations, clothing
c)
Allowances, gifts, fun money
d)
Emergencies, large purchases, and wealth building
5.
What bad habit often causes people to stop saving?
a)
Hoarding money
b)
Instant gratification - buying without thinking
c)
Not having a bank account
d)
Only buying used cars
6.
What percentage of Americans could not cover a $400 emergency?
a)
2 percent
b)
41 percent
c)
36 percent
d)
67 percent
7.
What is the goal of an emergency fund?
a)
To have cash on hand for unexpected events
b)
To buy big items
c)
To save for retirement
d)
To pay for insurance
8.
When it comes to emergencies, Murphy's law says it is not IF one will happen, but _______.
a)
Where
b)
How
c)
When
d)
Why
9.
One danger of not saving money is…
a)
You will lose your bank account
b)
You will never buy anything fun
c)
You must get a second job
d)
You may need to rely on loans which lead to debt
10.
What is the first step when saving for a large purchase?
a)
Go shopping to compare prices
b)
Decide how long you will make payments
c)
Decide how much you need and how long you have to save
d)
Ask your parents for money
11.
Paying cash instead of borrowing for large purchases helps you avoid…
a)
Missing out on sales
b)
Interest payments and debt
c)
Buying used instead of new
d)
Going to multiple stores
12.
What kind of interest rates are the most favorable?
a)
High when paying; high when receiving
b)
High when paying; low when receiving
c)
Low when paying; low when receiving
d)
Low when paying; high when receiving
13.
Why do stores rarely advertise the full price of items like smartphones?
a)
They want to make the monthly payment seem affordable
b)
They want customers to become employees
c)
The full price always changes
d)
Phones are free but they don't want anyone to know
14.
What two things do you need in order to build wealth over time?
a)
A high salary and a financial advisor
b)
A credit card and a savings account
c)
A business and a college degree
d)
Money invested consistently and time for it to grow
15.
In the Jack and Blake example, why did Jack end up with more money?
a)
He earned more money than Blake
b)
He was more interested than Blake
c)
He started saving earlier than Blake
d)
He was older than Blake
16.
One of the main reasons to build wealth is so we can…
a)
Give to those in need
b)
Buy whatever we want
c)
Prove our success
d)
Impress other people
17.
Which statement best describes building wealth?
a)
It is a get rich quick scheme
b)
It is a marathon that takes consistent effort over many years
c)
It requires a college degree to know how to do it correctly
d)
It requires winning the lottery
18.
According to Ramsey, what is a millionaire’s best friend?
a)
Compound interest and growth
b)
Monthly payments
c)
A high-paying job
d)
Expensive assets
19.
You planned to save $60 a month for a new bike. After three months, you have only saved $90. What is the BEST way to get back on track?
a)
Ignore the plan and hope you save more next month
b)
Increase your monthly savings for the next few months
c)
Borrow the rest from a friend
d)
Put the bike on a credit card
20.
Your phone battery dies unexpectedly and costs $120 to replace. You have a $500 emergency fund. What should you do?
a)
Pay with your emergency fund, then rebuild the emergency fund
b)
Put the repair on a credit card
c)
Borrow from your parents
d)
Ignore it and hope the car still starts
21.
You want to buy a $900 laptop in 9 months. What is the most financially responsible plan?
a)
Save whatever is left at the end of each month
b)
Put it on a payment plan and pay interest later
c)
Save $100 a month for the next 9 months
d)
Wait until the store offers a Black Friday deal
22.
You want to begin building wealth as an adult. Which habit will help you the MOST?
a)
Investing a lot once every few years
b)
Waiting until you make a high salary
c)
Borrowing money to start quickly
d)
Consistently saving even small amounts over a long period
23.
You want to buy your first car, and you can save $200 per month. How long will it take to save $3,000?
a)
Don't save; take out a car loan instead
b)
No months; my parents will always buy my stuff for me
c)
15 months
d)
30 months
24.
Adults make a plan and follow it. Children do what _____ good.
a)
sounds
b)
looks
c)
smells
d)
feels
25.
Practicing self-discipline will lead you to have a higher quality of life than those who don't.
a)
True
b)
False
26.
Match the following
a)
Income
1.
The money a person gets from a job or for performing a service
b)
Savings
2.
Money that is set aside for later use
c)
Expenses
3.
Items that use up one's income
d)
Budget
4.
A plan for tracking a person's income and expenses.
27.
Imagine Kai and Mia are planning a fun shopping spree! What do they need to know before they start spending?
a)
How much you will get paid next week.
b)
How much money you have
c)
Weekend plans
28.
It's ok to have debt sometimes. (a)
Choose from the below words
False
True
100 %
