Vocabulary
physical products like food and clothing
What are goods?
This allows you to set your prices and allows people to decide if they want to purchase your product or someone else's.
What is the Freedom to Buy and Sell?
Why do we use money?
It acts as a representation of goods/ services.
It's too hard to carry around the equivalent of goods.
Why do you save $1,000 before you have paid off your debts?
You need an emergency fund so you can avoid *adding* debts.
jobs you pay to have done/ actions that help others
What are services?
This allows you to make more money on a product than what it cost you to make it.
What is the freedom to make a profit?
Why does $10 in 2025 have less value than $10 in 2000?
Inflation has caused prices to increase, so money doesn't have as much buying power.
What is the "snowball" debt attack?
Pay minimum amount on all but the smallest debt. On that one, pay as much as you can beyond the minimum so you're paying principle too. Once that debt is paid off, take the amount you were paying on the previously smallest debt and apply that (plus the minimum) on the next smallest debt. Continue working up, "snowballing" the amounts that you are paying as you go.
a place where goods and services are exchanged
What is a market?
This allows you to make a better product or to sell your product at a better price than other sellers.
Why do companies issue stock?
To raise money for expansion/ development
the term for intentionally investing money so it can earn more money. (Ramsey says to do this after non-mortgage debts are paid off.)
What is "wealth building"?
desires for goods or services
What are wants (in economic terms)?
This allows you to own something, and you can buy/ sell/ use it as you want.
What is the freedom to own property?
Why do unions sometimes strike?
Their demands are not being met, usually for pay, benefits, or working conditions.
True or false: avoiding debt can lead to financial freedom and hope.
True!
those who use goods or services
What are consumers?
This allows you to pursue any (legal) career you wish.
What is the freedom to choose an occupation?
Why do we have "economics"?
scarcity
Basically, we need to allocate resources.
To make sure you are the boss of your money, you must have
a budget!