Ramsey Chapters 1-5

Front

What is the Fourth Foundation in personal finance?

Back

The Fourth Foundation is to pay cash for college.

Front

What factors affect a credit score?

Back

Factors that affect a credit score include type of debt, new debt, and duration of debt.

Front

Which of the following is NOT a key to saving money?

Back

Your income is NOT a key to saving money.

Front

What are the consequences of overdrawing your checking account?

Back

Consequences include bounced check fees from stores, stress from money mismanagement, and overdraft fees from banks.

Front

What does a cash flow statement summarize?

Back

A cash flow statement summarizes all of the incomes and outgo (spending) over a certain time period.

Front

What is a budget?

Back

A budget is a written plan for saving and spending.

Front

What is the purpose of a budget?

Back

The purpose of a budget is to plan for future income and expenses.

Front

What is an emergency fund?

Back

An emergency fund is a savings account set aside for unexpected expenses.

Front

What is the importance of making saving a habit?

Back

Making saving a habit ensures consistent financial growth and security.

Front

What is the impact of high credit card debt on credit score?

Back

High credit card debt can negatively impact your credit score.