5 Foundations
The First Foundation wants you to save this amount of money for your emergency fund
$500
These individuals offer credit at incredibly high interest rates to people in desperate financial situations
Loan Sharks
This is the total amount of money that you bring home after taxes
Net Income
Consumer
The Second Foundation wants you to get out of and stay out of this
Debt
When someone is buying a home but can't pay for it out of pocket, they will sometimes choose to get this type of debt
Mortgage
This is the total value of everything you own
Assets
All decisions that an individual must make in order to earn, budget, save, spend, and give money is called this
Personal Finance
The Third Foundation focuses on paying cash for this
Car
When the dollar value of a person's liabilities is larger than the value of their assets, it's called this
Negative Net Worth
This is the total of all of your debts
Liabilities
Personal finance uses these percentages of head knowledge and behvaior
20% head knowledge, 80% behavior
The Fourth Foundation says that college should be paid in this way
With cash
This is what credit card companies charge to balances left on the account
Interest
When the total of take home pay matches the expenses coming out each month, you are living in this state
Paycheck to Paycheck
This is a plan of action that allows a person to meet not only their immediate needs but also their long-term goals
Financial Plan
The Fifth Foundation wants us not only to build wealth but to also have this purpose
Giving
This is the cost of goods or services
Expenses
This is the amount of total debt owed by US consumers for student loans
$1.5 Trillion
The amount by which the value of a person's assets exceeds or falls behind the value of their liabilities
Net Worth