Everfi - Module 3 - Budgeting

Which is NOT a benefit of using a budget?

• 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 purchase anything you want

• A budget can help you decide the importance of your expenses

Which of the following should NOT be considered when setting a current budget?

• Your financial goals

• Future income

• Needs & wants

• Savings

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

• Credit unions

• Online research websites

• Bank & credit statements

• Your wallet

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

• Possible charitable donations

• Shopping money

• Investments

• Recurring expenses

Which is NOT a good way to track your spending?

• In your head

• Notebook

• Envelope method

• Online software/App/Spreadsheet

Bank statements, credit statements, and records of cash expenses help you estimate your _____.

• Credit score

• Emergency fund needs

• Expenses

• Available investments

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

• prepares you for unexpected expenses

• keeps you from borrowing money

• removes the worry about expenses not in your budget

• the three answers above are all good reasons

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

Charitable donations, entertainment expenses, and financial goals are all examples of...

• activities that contribute to overspending

• things that are considered needs

• activities that are necessary for a healthy lifestyle

• things to consider when creating a budget

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

• Round up your expense estimates to add a buffer

• Use most of your budget for entertainment expenses

• Find a friend that enjoys going shopping

• Buy all of your wants at one time