Ramsey Classroom Chapter 1 Test
Questions and Answers Graded A+
What is the main reason people struggle with money despite earning enough?
✔✔ They don’t have a clear plan or budget.
What is the first step in taking control of your personal finances?
✔✔ Learning how money works and making a plan.
Why is it important to have a written budget?
✔✔ A written budget tells your money where to go instead of wondering where it went.
What does living paycheck to paycheck usually indicate?
✔✔ A lack of saving and planning for future expenses.
What is the true meaning of being financially literate?
✔✔ Understanding how to manage, save, and grow money wisely.
1
, Why should you avoid borrowing money for everyday purchases?
✔✔ It creates unnecessary debt and stress over time.
What is the connection between behavior and money success?
✔✔ Your habits and decisions have a greater impact than income level.
Why is using cash often better than using credit for daily spending?
✔✔ Cash helps you stay within your limits and avoid overspending.
What is the impact of compound interest when used correctly?
✔✔ It helps your savings grow faster over time.
Why is it important to understand the history of credit in America?
✔✔ It shows how borrowing became normalized and why we must be cautious.
How does advertising influence spending decisions?
✔✔ It creates emotional desires and encourages impulse buying.
2
Questions and Answers Graded A+
What is the main reason people struggle with money despite earning enough?
✔✔ They don’t have a clear plan or budget.
What is the first step in taking control of your personal finances?
✔✔ Learning how money works and making a plan.
Why is it important to have a written budget?
✔✔ A written budget tells your money where to go instead of wondering where it went.
What does living paycheck to paycheck usually indicate?
✔✔ A lack of saving and planning for future expenses.
What is the true meaning of being financially literate?
✔✔ Understanding how to manage, save, and grow money wisely.
1
, Why should you avoid borrowing money for everyday purchases?
✔✔ It creates unnecessary debt and stress over time.
What is the connection between behavior and money success?
✔✔ Your habits and decisions have a greater impact than income level.
Why is using cash often better than using credit for daily spending?
✔✔ Cash helps you stay within your limits and avoid overspending.
What is the impact of compound interest when used correctly?
✔✔ It helps your savings grow faster over time.
Why is it important to understand the history of credit in America?
✔✔ It shows how borrowing became normalized and why we must be cautious.
How does advertising influence spending decisions?
✔✔ It creates emotional desires and encourages impulse buying.
2
