Vocabulary
Money owed to another person or company
Debt
The problem with anyone's money is the person in the ______________.
mirror
What is The First Foundation?
Save $500 for an emergency fund.
What percentage of Americans say they're burdened by consumer debt?
72%
What does it mean to "Keep up with the Joneses?"
You think you need the things that other people have, even if you can't afford them.
The additional cost a lender charges for borrowing their money
Interest
Take _________ off the table.
debt
What is The Fourth Foundation.
Pay cash for college.
How much credit card debt does the average American household have?
$14,947
How do people get stuck in the paycheck to paycheck cycle?
A big chunk of their monthly income goes to paying off debt, so they can't save and often have to go into deeper debt just to make it through the month.
When your assets are greater than your liabilities, you have a ________________.
positive net worth
owe
What is The Third Foundation?
Pay cash for your car.
Personal finance is 20% knowledge and 80% _____________.
behavior
How do you calculate your net worth?
Net worth = what you own - what you owe
The granting of a loan and the creation of debt; any form of deferred payment
Credit
When it comes to money, you are either a __________ or a saver.
spender
What is The Second Foundation?
Get out of debt and stay out of debt.
How much was the total student loan debt in America in 2020?
$1.5 trillion
Describe two guidelines that can help you communicate about money better.
1) Pick the right time and place
2) Be honest
3) Seek counsel
4) Share your goals
An expression used to describe a person or household whose monthly income is devoted to expenses and has little to know savings
Paycheck to paycheck
Self-control is _____________ maturity.
emotional
What is The Fifth Foundation?
Build wealth and be outrageously generous.
The average American under age 36 is carrying over ___________ in debt.
$26,000
List 3 reasons why learning about personal finance can help you in the future.
Answers will vary.