Credit
What is the name of the score that shows how responsible you are with borrowing money
Credit Score
What do we call money that you borrow and have to pay back
Debt
What is the first foundation?
Save $500 for an emergency fund
What is the term for the total value of everything you own minus what you owe?
Net Worth
What is financial literacy?
What do you call the extra money you pay when you borrow money on a credit card or loan?
Interest
What is the extra money you pay a lender for borrowing money called?
Interest
Get out and stay out of debt
If your assets are $10,000 and your liabilities are $4,000, what is your net worth?
$6,000
Personal finance is all the financial decisions _____________________ must make in order to earn, budget, save, spend and give money over time.
Individual/Company ( Test Question :))
What is the maximum amount you are allowed to borrow on a credit card called?
Credit Limit
Name one type of debt that students or adults commonly have.
Credit card debt, student loans, car loans, mortgage
What is the third foundation?
Pay cash for your car
Something you owe
Liabilities
To gain an understanding of your personal finances, you should know...
Where you stand financially, how much income you ahve, what goals you want to set, and how youll reach those goals ( test question :))
woooooowwww thanks ms. mattiello!!!!
Name one thing you can do to build good credit.
Pay bills on time
How can carrying too much debt affect your financial future?
It can lower your credit score, increase interest payments, and make it harder to borrow money
What is the 5th foundation?
Build wealth and give
Something you own
Personal finance is 20% __________ and 80% __________
Behavior, Head knowledge (ANOTHER TEST QUESTION :))
Why might closing old credit cards sometimes lower your credit score?
Because it can reduce your available credit and shorten your credit history. It gives the credit card company a thought as if you can not afford your debts and are unable to pay off the money borrowed.
True or False: Avoiding debt can lead to financial freedom and hope
True (Test Question) :) you're welcome
According to Dave Ramsey, why is it important to have a fully funded emergency fund as the third foundation, and how does it help prevent going into debt?
A fully funded emergency fund provides money for unexpected expenses like car repairs or medical bills, so you don’t have to borrow money or use credit cards, which helps you avoid debt and stay financially stable.
How do you calculate someone's net worth?
You subtract liabilities from assets
Spender vs Saver