EVERFI: Budgeting

What can a budget help you do?

• Prioritize expenses and track spending

• Track spending and increase your income

• Use credit and prioritize expenses

• Increase your income and use credit

How can a budget help you reach your financial goals?

• Budgeting helps track spending and increases savings.

• Budgeting reduces credit card interest rates.

• Budgeting can help you make smart investments.

• Budgeting allows you to earn more money over time.

What should be prioritized when creating a budget?

• Future earnings

• Career path

• Credit report

• Needs and wants

What does "pay yourself first" mean?

• Pay down debt before doing any spending

• Put money in your savings account before you pay other expenses

• Split your money according to how much you want to spend on each bill or expense

• Spend your money on your wants before you spend on your needs

In the 50-30-20 Rule, 50% of your income should be spent on ______.

• Debt

• Savings

• Needs

• Wants

Carlos wants to start a budget. He is planning on using the 50-30-20 Method. He's categorizing his Expenses. How should he categorize paying his insurance?

• Needs

• Wants

• Savings

• Debt