Everfi Budgeting Review

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 should NOT be considered when setting a current budget?

• Your financial goals

• Future income

• Needs and wants

• Savings

Which of the following should you consider when setting a budget?

• Your financial goals

• Needs and wants

• Savings

• All of the above

___________ 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

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?

• 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 after looking at your wants.

• None of the above

Which of the following is NOT a good way to track your spending?

• In your head

• Notebook

• Envelope method

• Online software or app

Which of the following is NOT true about emergency funds?

• They are used for anything listed on the budget.

• They can keep you from borrowing money from friends and family

• They help you prepare for unexpected expenses.

• They help remove the worry about expenses not in the budget.

When setting a budget, you should consider:

• Financial goals, current expenses, and income.

• Mostly income.

• Creative ways to spend your money.

• Mostly your goals.

Unexpected expenses:

• can make it hard to stick to your budget

• may cause you to be unable to pay necessary bills

• should be planned for

• all of the above