Money Management Everfi Review

Select the answer that best describes opportunity cost

• the amount of money you put into saving each year

• What you give up as a result of choosing one option versus another, a trade off

• The amount of money a business makes each year from sales

Before buying a new computer, you want to do some research to help you select the best model for your needs. Where should you look for the most objective and unbiased information?

• The most popular computer company's website

• Paid advertisements in a technology magazine

• A salesperson at an electronics store who earns commission on sales

• An independent consumer education website that reviews and rates technology products

Which of the following expenses should be included in a typical budget?

• Taxes

• Charitable Giving

• Savings

• All of the above

Which of the following would be considered a want for most people?

• A brand-name jacket

• Transportation to get to work

• A place to live

• . Nutritious food

Which of the following is a variable expense for many adults?

• Their monthly cost of eating out at restaurants

• Their monthly rent payment

• The monthly payment on their car loan

• Their monthly payment for health insurance

Which of the following is NOT true of a budget? [note capitalization of “NOT”]

• Budgets help you plan how to spend money you earn or receive

• Once a budget is set, it should not be revisited

• A budget can include charitable giving

• Budgets include both income and expenses

Which of the following is NOT a successful budgeting strategy?

• Keep some extra money in your budget for emergencies

• Pay with a credit card if you have a hard time sticking to a budget

• Think about which items are your most important needs

• . Revisit your budget regularly and make adjustments

Income earned on an hourly basis is called a:

• Salary

• Stipend

• Wage

• . Benefit

Which factor has the biggest impact on a credit score?

• Payment History

• Type of credit

• Amount owed

• Length of credit

Ashley wants to use money from her checking account to make a purchase. Which payment method should she use?

• Credit card

• Debit card

• Direct Deposit

• Prepaid Card