Lesson 3 Quiz review: Budgeting

Which choice or choices best describes the purpose of an emergency fund?

An emergency fund prepares you for unexpected expenses.

___________ are good places to look to find your current expenses when building your budget.

Bank and credit statements

Unexpected expenses...

can make it hard to stick to your budget.

This helps you prepare for unexpected expenses.

Emergency fund

Which of the following is a way to track your spending?

Envelope method and spreadsheet budget

Which of the following is a benefit of using a budget?

Helps to prioritize your spending

Which of the following should you consider when setting a budget?

Needs and wants

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

Recurring expenses

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.

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

Round up your expense estimates to add a buffer/cushion

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

emergency fund spending.