1.1
What does bad credit history usually lead to?
Higher interest rates.
A financial plan is like a…?
map to get from where you are to where you want to be with your money
The 5 foundations are:…?
Personal financial plan developed by Dave Ramsey
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
Personal finance
What is the largest type of debt in the U.S.?
mortgage debt.
Think of equations:
Net worth =
assets - liabilities
To make the most financial progress, it is important to:…?
follow the 5 foundations IN ORDER
Consumer
a person or organization that uses a product or service
What is a reason you would want to follow these 2 life principles:
1. always live on less than you make.
2. Always have a budget.
to be debt-free
What are the 3 types of goals?
long term
medium term
short term
how does the 5 foundations help kids Today?
helps Kids reach financial freedom So they don’t end up like most U.S. adults, who are in debt.
the granting of a loan and the creation of debt; any form of deferred payment
Credit
Good financial decisions is only about how much percent head knowledge?
20%
What are 4 things you need to know for your financial plan?
net worth
How much money you have to work with — Save excess funds
What goals you want to set
How you’ll reach those goals
What are things you can do to follow the 5 foundations in your life today?
anything that helps save Money and not using it unwisely
the knowledge and skill base necessary for people to be informed consumers and manage their finances effectively
Financial literacy
Personal finance is all the financial decisions an individual or family makes in order to…
earn
Budget
Save
Spend
Give money
To help maintain your goals, they should be:
specific
Measurable
Time-sensitive
Yours
written
Name the 5 foundations:…?
save $500 for emergency fund
Get out and stay out of debt
Pay cash for your car
Pay cash for college
Build wealth and be outrageously generous
Interest RATE
the percentage of principal charged by the lender for use of its money