The Five Foundations
The first step in the five foundation
what is saving $500 in an emergency fund?
all the financial decisions an individual or family must make in order to earn, budget, save, spend, and give money over time
what is personal finance?
the additional cost a lender charges for borrowing their money
what is interest
Stay away from_______
what is debt
the cost of goods or services; money paid out
what is expense
The second step in the five foundation
what is get out and stay out of debt?
money owed to another person or company
what is debt?
The total of student loan debt
what is 1 trillion dollars
Live on_____than you make.
what is Less
anything that is owned by an individual, including money in the bank or investments
what is an asset
The third step in the five foundation
what is pay cash for your car?
personal finance is 20% head knowledge and 80%_____
what is behavior
the granting of a loan and the creation of debt; any form of deferred payment
what is credit
Always have a ____
financial debts or obligations
what is a Liability
The fourth step in the five foundation
what is pay cash for college?
a person or organization that uses a product or service
what is a consumer?
the percentage of principal charged by the lender for use of its money
what is interest rate
A budget is just a written game plan for your ______
what is money
the dollar value of a person’s liabilities is larger than the value of their assets
what is negative net worth
The fifth step in the five foundation
what is build wealth and give?
an expression used to describe a person or household whose monthly income is devoted to expenses and has little to no savings
what is pay check to pay check?
person or entity that charges borrowers interest rates above an established legal rate
what is a loan shark
44% of Americans report they have less than _____ in saving
what is $1,000
the dollar value of a person’s assets is greater than the dollar value of their liabilities
what is positive net worth