Personal Finance
Money owed to another person or company
Debt
The additional cost a lender charges for borrowing their money
The cost of goods or services; money paid out. What is this ?
Expense
An expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
Paycheck to paycheck
The granting of a loan and the creation of debt; any form of deferred payment
Credit
What is the First Foundation?
Save $500 for emergency fund.
Personal finance is ___% head knowledge and ___% behavior.
20; 80
In less than 50 years, our national student loan debt has gone from zero to a crisis level of more than a trillion dollars. The turning point was in 1972 when the _____________________ began offering government-funded federal loans to college students.
Student Loan Marketing Association - SLMA - Sallie Mae
According to Dave Ramsey, who should be in charge of the financial decision making in a marriage?
Both
______ ________ were individuals and small organizations that offered credit—also with incredibly high interest—to people in desperate financial situations who had nowhere else to turn.
Loan sharks
Describe the difference between a negative and positive net worth.
Negative: the dollar value of a person’s liabilities is larger than the value of their assets
Positive: the dollar value of a person’s assets is greater than the dollar value of their liabilities
What are the two types of money personalities? Briefly describe each.
What is the formula to determine net worth?
Assets - Liabilities = Net Worth
No matter how old they are or how much money they have—everyone needs a clear picture of their personal finances so they can reach their money goals. To do that, you need to know where you stand financially, how much income you have to work with, what goals you want to set, and how you’ll reach those goals. What is this called?
Financial plan
Name 3 of the 5 Foundations.
$500 emergency fund.
Get out of debt
Pay cash for your car
Pay cash for college
Build wealth and give.