Foundation 1
What is the first foundation?
build up an emergency fund
What is the second foundation?
get out and stay out of debt
What is the third foundation?
pay cash for a car
What is the fourth foundation?
pay cash for college
What is the fifth foundation?
build wealth and give like no one else
This is the specific amount Dave Ramsey recommends a high school student save for their starter emergency fund.
What is $500?
This is the most powerful wealth-building tool that debt Takes from you every month.
What is your income?
This is the term for a car's rapid loss in value over time.
What is Depreciation?
This is the free federal form you must fill out to see if you qualify for grants or work-study.
What is the FAFSA?
This is the most important "non-money" thing a student can give to their community.
(What is time or service?)
This "F" word describes the peace of mind you have when you know an unexpected bill won't ruin your month.
What is Financial Security?
This is the name of the method where you pay off your smallest debts first to build momentum.
What is the Debt Snowball?
Instead of a car "payment," you should set up this type of dedicated savings account for your next vehicle.
What is a Sinking Fund?
Choosing this type of two-year school before transferring to a university can save you tens of thousands of dollars.
What is a Community College?
Ramsey says that being "this" is the most fun you will ever have with money.
What is generous?
Instead of using this "plastic" tool during a crisis, you should use your emergency fund.
What is credit card?
Taking out a loan for a car or clothes is essentially "buying" things you can't afford with money you haven't ______.
What is earned?
Buying this type of "used" vehicle allows you to avoid the 20% value drop that happens the moment a new car leaves the lot.
What is a pre-owned car?
These are "free money" awards based on merit, hobbies, or grades that you never have to pay back.
What are Scholarships?
To reach this foundation, you must first ensure your own "financial house" is in order, following this order of operations.
What are the Baby Steps?
As an adult, this fund should eventually grow to cover this many months of living expenses.
What is 3 to 6 months?
This is the mathematical term for interest that works against you in debt but for you in savings.
What is Compound Interest?
According to Ramsey, the total value of all your vehicles should never exceed this percentage of your annual income.
What is 50%?
This is the "hidden cost" of student loans, where you end up paying back much more than you originally borrowed.
What is Interest?
This is the ultimate goal of the Five Foundations: to leave a "legacy" for this group of people.
What is your family or future generations?