Dave Ramsey: CH 1 Questions and Answers 100% Pass

Dave Ramsey: CH 1 Questions and Answers 100% Pass Making the right choices with your money-managing your money-involves knowing how... Earning, budgeting, saving, spending, and giving affect your money Banks got into the credit business before 1920 because charging exceptionally high interest rates was legal True You should always make sure you have a... Budget To gain an understanding of your personal finances, you should know... Where you stand financially, how much income you have, what goals you want to set, and how you'll reach those goals What is the first foundation? Save a $500 emergency fund Being a spender has many more positives than being a saver False Personal finance is all the financial decisions a(n) ___________must make in order to earn, budget, save, spend, and give money over time Individual or company After WW1, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit... Increased so rapidly, loan sharks became obsolete A money principle to keep in mind is to live on _________ you make Exactly 20% what To know your net worth, subtract your liabilities from your__________ Net income What is financial literacy? The knowledge and skills base necessary for people to be informed consumers and manage their finances effectively Savers have a tendency to be... Strict with purchases for only themselves What is the best way to avoid running out of money too quickly? You can make it a habit to plan and set goals for your money FDR passed the New Deal because of the Great Depression in the 1930s. What was the purpose of this program? To promote economic recovery and social reform An important money principle to consider is that you should _______________ and ________________ your money save; invest If your assets total more than your liabilities,