Everfi Module 3 - Budgeting

Which of the following is a benefit of using a budget? 1. Helps to keep track of the money you receive 2. Helps to prioritize your spending 3. Helps reach short- and long-term financial goals 4. All of the above

4. All of the above

Which of the following is NOT a benefit of using a budget? - A budget can help you purchase anything you want. - A budget can help you keep track of your money. - A budget can help you make plans to reach your financial goals. - A budget can help you decide the importance of your expenses.

A budget can help you purchase anything you want.

Which choice or choices best describes the purpose of an emergency fund? - An emergency fund prepares you for unexpected expenses. - An emergency fund keeps you from borrowing money from friends and family. - An emergency fund removes the worry about expenses not in the budget. - All of the above are good reasons to have an emergency fund.

All of the above are good reasons to have an emergency fund.

What is NOT a good way to prevent unnecessary spending?

Buy all of your wants at one time.

What budgeting tip(s) would help you to stay on track financially?

Find a friend with similar goals and hold each other accountable

Which of the following should NOT be considered when setting a current budget? - Your financial goals - Future income - Needs and wants - Savings

Future income

An emergency fund should NOT be used for...

Going to the movies.

Which of the following is NOT a good way to track your spending? - In your head - Notebook and pencil - Envelope method - Online software or app

In your head

What should be considered when setting a budget?

Needs, wants, and savings

In addition to needs, what should you plan for first when creating a budget?

Recurring expenses

Which of the following statements is TRUE? - Recurring expenses don't need to be planned for because they rarely happen. - Recurring expenses are expenses that occur every month. - Recurring expenses should be planned for after looking at your wants. - None of the above

Recurring expenses are expenses that occur every month.

Which of the following expenses would be a good reason to spend money from an emergency fund? - Repair your laptop that you use for homework. - Upgrade your phone to the latest model. - Buy new track shoes because they're in style. - Purchase concert tickets to see your favorite artist.

Repair your laptop that you use for homework.

How can you ensure you don't go over your budget?

Round up your expense estimates to add a buffer

What is NOT true about unexpected expenses?

They do not occur if you have a budget.

Which of the following is TRUE regarding unexpected expenses? - They usually don't affect your budget. - They should be planned for. - They usually don't affect your ability to pay bills. - They should not be included in your budget.

They should be planned for.

Where should you look to find your current expenses when building your budget?

bank and credit statements

When setting a budget, you can choose to make room for: a. Financial goals b. Entertainment expenses c. Charitable donations d. All of the above

d. All of the above

When setting a budget, you should consider...

financial goals, current expenses, and income.

The envelope method, notebook and pencil, and online software are all methods of .

tracking your spending

An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for...

emergency fund spending.