Unit 1

Financial Plan

100

Not having debt can lead to…

Financial freedom

200

Personal finance=

80% behavior, 20% head knowledge 

300

The real problem for most people is…

Making smart choices

400

What 2 life principles should you have to be debt free?

Always have a budget, live on less than you make

500

Personal finance helps you to…(5 things)

Earn, budget, save, spend, give money over time

Net Worth

100

What is net worth?

The amount of money you are worth without debts?

200

Net worth=?

Assets-liabilities 

300

What is equity?

The value of something minus what you owe on it

400

What type of debt is largest in the US?

Mortgages 

500

What is the average net worth of someone in the US?

$1.06 million

Financial Categories

100

What are the five financial categories?

Wealthy, debt-free, normal, broke, bankrupt 

200

What percent of the population is classified as wealthy?

2%

300

About what percent of the population is classified as bankrupt?

.15%

400

1. Carolina owns her main house in Highland Village, TX as well as a vacation rental in Destin, FL.  In addition to their real estate, both her and her husband’s cars are paid off.  They make extra money every month through a rental property they purchased when they were younger.  When they retire, they plan to travel the world.

Which financial category does she fall in? 

Wealthy

500

1. Ben works 40 hours every week.  By the middle of the month, he had resorted to his credit cards to cover the cost of living.  He often avoids unknown numbers that appear on his caller ID as it is often a debt collector because he wasn’t able to pay all his bills last month. Sadly, when he arrived home yesterday, he had an eviction notice on his door.

What financial category does he fall in?

Broke

Goal Setting

100

What will planning and setting your goals keep you from?

Running out of money (debt)

200

What are the 3 types of goals?

Short term, medium term, long term

300

How long does one medium goal take?

2-5 years

400

What does it mean for goals to be yours?

A goal you’re passionate about 

500

What are all five ways you can use to help maintain your goals 

Specific, measurable, time sensitive, yours, written down

The Five Foundations

100

What is the first foundation?

Save $500 for an emergency fund

200

Who is the five foundations geared toward?

High school students

300

Who made the five foundations?

Dave Ramsey

400

What are the five foundations?

A personal financial action plan

500

What are the current interest rates at?

5.5%