Dave Ramsey Chapter 1 Test Prep

Money owed to another person or company

• Interest Rate

• Assets

• Debt

• Credit Card

The additional $ Cost a lender charges for borrowing their money

• Interest Rate

• Interesting

• Interest

• Interestingly

The granting of a loan and the creation of debt; any form of deferred payment

• Debit Card

• Credit Card

• Credit

• ATM

All of the financial decisions an individual or family must make about their money

• Give to Others

• 5 Foundations

• Living the Dream

• Personal Finance

The dollar value of a person's assets is greater than the dollar value of their liabilities

• Negative Net Worth

• Total Assets

• Financial Peace

• Positive Net Worth

This is a person or organization that uses a product or service

• Hungry Person

• Loan Shark

• Consumer

• Asset

The percentage of principal charged by the lender for the use of its money

• Default Rate

• Interest Rate

• Pay Rate

• Debt

The knowledge and skill base for people to be informed consumers and manage their money effectively

• Personal Finance

• Debt

• Financial Literacy

• Net Worth

How you describe a person or family whose monthly income barely gets them through the month and they have no savings

• Living the Dream

• Living Paycheck to Paycheck

• Living Peanuts to Carrots

• Living the Drip Cap Life

The total wealth of a person/family taking into account all of their assets and liabilities

• Total Value

• Net Worth

• Mega Assets

• Full Liabilities