Budgeting - Everfi

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

• Helps to keep track of the money you receive

• Helps to prioritize your spending

• Helps reach short- and long-term financial goals

• 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.

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

• Your financial goals

• Future income

• Needs and wants

• Savings

What should be considered when setting a budget?

• Needs and wants

• Savings

• Time management goals

• Needs, wants, and savings

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

• credit score

• emergency fund needs

• expenses

• available investments

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

• Possible charitable donations

• Shopping money

• Investments

• Recurring expenses

Which of the following statements is TRUE?

• a) Recurring expenses don't need to be planned for because they rarely happen.

• b) Recurring expenses are expenses that can never be stopped.

• c) Recurring expenses should be planned for after looking at your wants.

• d) None of the above

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

• a) An emergency fund prepares you for unexpected expenses.

• b) An emergency fund keeps you from borrowing money from friends and family.

• c) An emergency fund removes the worry about expenses not in the budget.

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

This helps you prepare for unexpected expenses

• Credit cards

• Checking account

• Emergency fund

• None of the above

When setting a budget, you can choose to make room for

• Financial goals

• Entertainment expenses

• Charitable donations

• All of the above