Dave Ramsey

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Chapter 7 Vocabulary

Active| Money is very active... it is always moving and can be utilized in many ways.| ATM Card| Automated Teller Machine card which allows you to make transactions in Automated Teller Machines.| Budget| A cash flow plan. Every dollar you make is assigned to a specific category / expense at the beginning of each month or pay period.| Carbon Checks| Checks that have a second copy behind them made of special paper which makes a copy of each check as you write them.| Currency| Money.|

Debit Card| A type of card (often backed up by a major credit card company) that is issued by a bank and used to make purchases. Unlike a credit card, the money comes directly out of the user's checking account. (Also called a "Check Card".)| Discipline| Self-control used in directing behavior. The key to wealth building is being consistent (self-disciplined) over time.| Envelope System| A series of envelopes, divided into pre-determined categories, used to store cash for planned monthly expenses. This is a self-imposed discipline tool to help people manage their monthly finances. Possible categories include food, entertainment, gas, etc.| Hoarding| Collecting unneeded items or much more than necessary and then guarding them.| Impulse Purchase| To buy an item without thinking about it.| Persistent| Refusing to give up.|

Pro-active| Controlling a situation by causing something to happen rather than waiting to respond to it after it happens. This takes a strong initiative.| Procrastinate| To put off until later; waiting until the last minute.| Reconcile| To match your bank statement with your checkbook, preferably within 72 hours of receiving the statement.| Zero-based Budget| Cash flow plan that assigns an expense to every dollar of one's income: (total income) - (total expenses) = zero.| 1. Money is very active.

2. Automated Teller Machine card which allows you to make transactions. 3. Budget is a cash...
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