Page 73 - Managing Your Resources - Student Syllabus - short combined

Eight Money Habits That Keep you Poor

11.4 Let’s Practice

1. True or False It is ALWAYS better to SAVE for a purchase than to BORROW.

2. A good practice is to start a business that requires ______________ you already possess.

3. Purchasing a home or starting a business are known as _________________ assets because
they increase their value over time.

4. Automobiles, home appliances, clothing, electronics and even non-tangible items like dowries,
weddings, funerals, education, recreational activities, are known as ____________ assets or items
because the lose their value over time.

There are many problems associated with going into debt. Your instructor listed seven of them. Please
write out the seven problems with debt and why God does not want you to be in debt.

11.5 Let’s Personalize this Lesson…

While the Bible does not forbid a person from going into debt, it does clearly give cautions
and restrictions about it. It is important to understand that debt must carefully be
managed and repaid.

Make sure you understand the difference between appreciating and depreciating items.
Going into debt for appreciating items is a much safer way to manage debt, as the value of the item for
which you are in debt is increasing. If you had to sell the item to liquidate the debt, you would be able
to do so.

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