Terms
the amount you own to someone else
debt
Our work and path in life is a function of (name 2 of the 6 we talked about)
gifts, abilities, opportunities, education, experience, effort
It was part of God's plan.
What is a FICO score?
Credit score
Personal Finance is 20% head knowledge and _____.
80% behavior
an amount of money you need to pay toward expenses before your insurance will cover the rest
deductible
FAFSA -- Free application for federal student aid
It's important to know your money personality. What two ways did we characterize this?
Spender and Saver
Name 2 reasons that household debt increased in the USA
Normalization
Convenience
The knowledge and skills required to spend, save and manage money effectively.
Financial Literacy
A percentage of the borrow money that must be paid back to the lender on top of what was borrowed.
Interest Rate
What does COA stand for?
Cost of Attendance
Name 2 out of the 5 Foundations for Financial Freedom according to Ramsey.
Save $500 for an emergency fund.
Get out of debt and stay out of debt.
Pay cash for College.
Pay cash for Car
Build wealth and give generously.
What is the first part of the Financial Freedom model we've been looking at?
Work yields income
3 basic principles for Personal Finances
Have a plan.
Live on less than you make.
Stay away from debt.
A contract that allows you to borrow someone's property for a specific amount of time and money.
Lease
Expected Family Contribution (EFC)
What does it mean to be a steward of God's gifts?
We are not the owner of the gifts but we are called to use them wisely.
In 1958 two things happened that increased debt. Name one
Credit cards started and college students were first able to borrow money for college.
What is the equation for Net Worth
Net worth = assets - liabilities
The amount of time you have to pay off what you've borrowed before interest starts to accrue.
Grace Period
Social or personality-based skills that help someone work and collaborate productively.
Soft Skills
Three principles of Biblical Stewardship
#1 God owns everything
#2 We are Stewards of what God gives us
#3 We will be held accountable
Three good habits to secure financial stability and financial freedom
No debt
Save
Invest early and consistently
Three elements needed to maintain your finances.
Goal settting, Planning, Consistent Effort.