Everfi- Financial Literacy Lesson 3

Rate your understanding of budgeting and expenses.

• 1* I am super lost

• 2** I get some things but not others

• 3*** I feel pretty good; I just need more practice

• 4**** I feel super Confident

What is budgeting?

• Having money left over at the end of the month.

• A plan made in advance showing how you spend money based on available income.

• The ability to pay your bills on time.

• Having enough money to go out to eat.

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

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

• Banks and credit unions

• Grocery stores and concerts

• Bank and credit statements

• Online research websites

Name the expense that stays the same amount and choose an example of it.

• fixed expense

• variable expense

• Car note payment

• Fuel cost

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

• credit score

• emergency fund needs

• expenses

• available investments

Name the expense that does not stay the same amount and choose an example of it.

• fixed expense

• variable expense

• Apartment rent

• Electricity bill