Financial Literacy Quiz

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 type of bank account is best if you want some growth on your money?

• 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

What should be considered when setting a budget?

• Needs and wants

• Savings

• Time management goals

• Needs, wants, and savings

Which of the following is NOT true about emergency funds?

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

• They help you prepare for unexpected expenses.

• They are used for anything listed on the budget.

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

This helps you prepare for unexpected expenses.

• Credit cards

• Checking account

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

• An emergency fund prepares you for unexpected expenses.

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

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

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

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.