EVERFI Lesson 1: Building a Balanced Budget

Which of the following statements about startup capital is FALSE?

• Startup capital is the money spend in order to create a balanced budget for your personal finances.

• Startup capital is the money you invest in the form of supplies, marketing, legal services, and other investments to get your business up and running.

• Both A and B

• Neither A nor B

When is a budget considered to be balanced?

• When the amount you earn is equal or less than to the amount you spend.

• When the amount you spend is greater than the amount you earn.

• When the amount you save is less than the amount you spend.

• When the amount you spend is equal or less than the amount you earn

Which of the following is an example of a tax you must pay?

• Bounced Check

• Rental Payment

• Late Fee

• Social Security

Which of the following budgets would be considered balanced?

• . A budget where the amount you earn is equal or less than to the amount you spend

• A budget where the amount you spend is greater than the amount you earn

• A budget where the amount you save is less than the amount you spend

• A budget where the amount you spend is equal or less than the amount you earn

Which of the following is an example of a tax?

• Line of credit

• Rental payment

• Cash payment

• Medicare

What is take home pay?

• The amount you earn each month in income minus what you save

• The amount you earn each month in income minus what you spend.

• The amount left over from your monthly paycheck before deductions.

• The amount left over from your monthly paycheck after deductions.

In a balanced budget, the amount you ______ is ______ the amount you earn.

• save; less than

• spend; greater than

• save; greater than

• spend; equal to

What is income?

• Income is payments you make to the federal government

• Income is money you receive after paying taxes.

• Income is payments you make to the government to pay for roads, bridges, and schools.

• Income is money you earn, usually from working at a job.

When creating a personal budget, it is important to consider things you _____, _______ things you ______.

• want; before; need

• need; after; want

• need; at the same time as, want

• need; before; want

What are federal taxes?

• Federal taxes are payments you make to the state government where you live.

• Federal taxes are money you earn from the US federal government.

• Federal taxes are money you earn from working at a job.

• Federal taxes are payments you make the the US federal government.