1.1
What is The first step in personal finance?
Earn money
Net Worth consists of?
Assets minus Liabilities
What Is the five foundations
A personal financial action plan geared towards high school students.
what is a consumer?
A person or organization that uses a product or service
What is debt?
Money owed to another person or company
What does bad history credit mean?
You don’t stuff on time
How long does a medium goal take?
2-5 years
What is the first of the five foundations?
Save 500$ for emergency fund
What is a liability?
Financial debts or obligations
Anything that is owned by an individual including money in the bank or investments.
What type of debt is the largest in the USA?
Mortgages
Planning and setting goals for your money will help keep you from
Running out of money too quickly
To make the most progress it’s important to
Follow the foundations in order.
What is positive net worth?
The dollar value of a persons assets is greater than the dollar value of their liabilities.
What is negative net worth?
The dollar value of a persons liabilities is larger than the value of their assets.
Not having debt can lead to..?
Financial Freedom
To help maintain your goals they show be
1. Specific
2. Measurable
3. Time sensitive
4. Yours
5. Written
Who made the five foundations?
Dave Ramsey
What is net income?
what a person earns after payroll taxes and other deductions are taken out; often referred to as take-home pay.
What is expense?
The cost of goods or services; money paid out
Personal Finance equals
80% behavior
What are the four things you need to know for your financial plan?
1. where you stand financially
2. How much income you have to work with
3. What goals you want to set
4.How you’ll reach those goals
Name the five foundations in order
1. Save a 500$ emergency fund
2. Get out and stay out of debt
3. Pay cash for your car
4. Pay cash for your college
5. Build wealth and give back
What is financial literacy?
The knowledge and skill base necessary for people to be informed consumers and manage their finances effectively.
What is personal finance?
All the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time.