Definitions
"All the decisions & activities of an individual or family regarding their usage, spending, saving, & budgeting of money"
Personal Finance
The plan made by David Ramsey for students and young adults, outlining "steps for financial peace"
The Five Foundations
What is the first foundation?
Save up an emergency fund of $500
What is the most important aspect in building wealth?
Discipline
What is the name of the arcade game you can make several "spins" on for 25 dollars?
Big Bass Wheel
"A plan for your money"
Budget
"A Financial liability, or obligation, owed by one person, the debtor, to another, the creditor"
Debt
What is the second foundation?
Get out of Debt
In a loan situation, who is the person who lends money to the person borrowing money?
The Creditor
What is Dave Ramsey's middle name?
Lawrence
What does this definition define?
"A debt evidenced by a "note" which specifies the principal (initial) amount, interest rate, and date of repayment.
Loan
What does this definition define?
"Things that you own (money, property, a car, etc.)"
Assets
What is the third foundation?
Pay cash for a car
What are two ways we discussed to make college more affordable?
Affordable School
Apply for Aid (FAFSA)
Consider Community/Trade School
Work During College
Live Off-Campus
What was the word that was misspelled in the first days "Know Thy Classroom" Trivia?
"Question", as it was spelt "Questiom"
"The ability to obtain goods or services before paying, based on the trust that payment will be made in the future."
Credit
"The percentage of principal charged by the lender for use of it’s money"
Interest Rate
What is the fourth foundation?
Pay cash for college
Give two reasons that Dave Ramsey recommends against credit cards:
Encourages Overspending
Leads to Debt
High Interest Rates & Fees
Rewards are not worth Risk
E-Fund can replace E-Credit Card Usage
You're playing roulette at a casino. Do you bet on black or red?
Each team, pick a color.
It was red
always bet on red
Partial Definition:
"Any form of payment that is deferred"
Credit
Future-Sight Daily Double!
This definition comes from the next chapter:
"Interest paid on interest previously earned"
Compound Interest
Name two things that differ between the Five Foundations and the Seven Baby Steps
> $1000 E-Fund
E-Fund of 3-6mo of Expenses
15% in Retirement
Save up for Children's Education
Pay off Home
How many times did I do the 6-7 hand thing in class on Tuesday?
14
Time to play a game!
We're gonna play a round of High Card, Low Card
If you win, you get the 500 points. If you lose, the other team gets the 500 points.
wowzers!!
(this is a neutral response whether you won or not)