Ramsey CH11 L1& L2

What does the term "Cost of Living" refer to?

• The total amount of money one has saved for retirement.

• The average cost of the basic goods and services needed to sustain a certain standard of living.

• The amount of money needed to pay for luxury items and services.

• The expenses one incurs while purchasing a house.

What is the definition of "House Poor"?

• When someone has a house that is too small for their needs.

• When someone owns multiple houses and struggles to manage them.

• When someone spends so much of their income on the costs of homeownership that they struggle to reach other financial goals.

• When someone lives in a house that is considered below the community standard.

What is meant by "Standard of Living"?

• The level of education one has achieved.

• The level of wealth, comfort, material goods, and necessities available to a group of people.

• The amount of money one earns in a year.

• The social status one holds in society.

Why is it important to learn about budgeting and developing good money habits before living on your own?

• Because it helps in choosing the right career.

• Because it is required by law.

• Because it helps in understanding how much things cost and in managing expenses without parental support.

• Because it ensures that you will never have to work again.

What is one of the natural parts of growing up mentioned in the text?

• Staying with parents indefinitely

• Moving out and living on your own

• Avoiding big decisions

• Ignoring financial responsibilities

According to the text, what will your room be furnished with if you're planning to attend college and live on campus?

• A meal plan only

• Furniture, internet, and a meal plan

• Just basic living expenses

• Furniture and utilities only

What does the text suggest you should do when you're done with school and join the workforce, until you can financially afford to buy a home?

• Buy a home immediately

• Live with your parents

• Rent a place close to your work

• Dive into independence without a plan

What are some of the expenses you will have to manage if you choose to live off campus?

• Rent, utilities, furniture, and transportation expenses

• Meal plans and internet only

• College tuition and books

• Furniture and maintenance only

According to the text, what is an important part of your personal financial plan and total net worth?

• Your car

• Your house

• Your furniture

• Your groceries

What are the money principles mentioned in the text that the course will help you stay on track with?

• Save, spend freely, live on more than you make, and be stingy

• Invest, always have a budget, stay out of debt, and be generous

• Save, always have a budget, stay out of debt, live on less than you make, and be generous

• Borrow, never have a budget, live on credit, and be selfish