Ch. 1 Dave Ramsey Personal Finance

Making the right choices with your money—managing your money—involves knowing how . . .

• Planning, saving, spending, and investing will define your financial portfolio

• To make bank deposits using registers with the appropriate transactions listed

• Consumer decisions will affect your accounts

• 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

• False

You should always make sure you have a…

• Budget

• Credit line

• Direct deposit

• Credit card

To gain an understanding of your personal finances, you should know . . .

• Your financial goals

• Where you stand financially, how much income you have, what goals you want to set, and how you’ll reach those goals

• How much income you have

• Your investment portfolio and your financial advisors’ contact information

Being a spender has many more positives than being a saver.

• True

• False

After World War I, the demand for products increased, and people began getting credit without loan sharks. Because of this, credit...

• Started to become more socially acceptable

• Increased so rapidly, loan sharks became obsolete

• Was offered at even higher interest rates by loan sharks

• Was devalued in the marketplace

It is possible to pay for college with cash.

• True

• False

An important money principle to consider is that you should ______ and ______ your money.

• Save; invest

• Invest; lay out

• Spend; invest

• Invest; endow

If your assets total more than your liabilities, you will have a(n) ______ net worth.

• Negative

• Equal

• Positive

• Unknown

Your money personality impacts . . .

• Your understanding of bank transactions

• How you handle money

• Your financial literacy level

• What you plan for as an adult