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Dave Ramsey Unit One
Term | Definition |
---|---|
Consumer | A person or organization that uses a product or service |
Credit | The granting of a loan and the creation of debt; any form of deferred payment |
Debt | An obligation of repayment owed by one party to a second party; in most cases this includes repayment of the original loan amount plus interest |
economy | A system by which goods and services are produced and distributed |
Financial literaacy | The knowledge and skillset necessary to be an informed consumer and manage finances effectively |
interest | a fee paid by a borrower to the lender for the use of borrowed money; typically interest is calculated as a percentage of the principal |
Loan | A debt evidenced by a "note," which specifies the principal amount, interest rate and date of repayment |
Personal finance | All of the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc. |