EPF Unit 7

Front

How does a fiscally responsible individual use an emergency savings fund to improve his or her financial well-being?

Back

to provide for unforeseen expenses

Front

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.

Back

They should be planned for.

Front

When paying bills and organizing a budget, which item and category should be considered first? (Options: utilities, variable; clothing, discretionary; life insurance, investment; mortgage or rent, fixed)

Back

mortgage or rent, fixed

Front

An emergency fund should NOT be used for…

Back

a last minute school trip.

Front

The largest percentage of a typical household budget is spent on: food, entertainment, housing, transportation

Back

housing

Front

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

Back

bank and credit statements

Front

Which of the following statements is TRUE? Recurring expenses are expenses that are not budgeted., Recurring expenses don't need to be planned for because they rarely happen., Recurring expenses are expenses that can never be stopped, Recurring expenses should be planned for, prioritizing needs over wants

Back

Recurring expenses should be planned for, prioritizing needs over wants

Front

Suppose the man’s car unexpectedly has a flat tire and he cannot afford to purchase a new one. How can he best modify his budget to plan for all future potential expenses?

Back

He can start adding money to savings to prepare for unexpected situations.

Front

How would choosing to save money for retirement most likely affect her budget?

Back

The woman would have to reduce her leisure spending, but would improve her future financial outlook.

Front

Which fact best supports the idea that renting is a good option for living in a place for a short period of time?

Back

Mortgages are usually for 15 or 30 years.