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WorksheetsEverfi- Financial Literacy Lesson 3
Total questions: 27
Worksheet time: 15mins
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
What are recurring expenses?
Expenses that you have to pay one time
Expenses that you never pay
Expenses that you pay month to month or on a regular basis
In addition to needs, what should you plan for first when creating a budget?
Possible charitable donations
Shopping money
Investments
Recurring expenses
In your budgeting process, when should you look at recurring expenses?
Before reviewing your wants
After considering entertainment expenses
Before looking at your needs
After your wants but before you needs
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 a way to track your spending?
Spreadsheet budget
Envelope method
An app
Keeping a mental list of what's in your wallet
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
Which of the following is NOT a good way to track your spending?
In your head
Notebook and pencil
Envelope method
Online software or app
What helps you prepare for unexpected expenses?
Credit cards
Checking account
Emergency fund
None of the above
The purpose of an emergency fund ..
to keeps you from borrowing money from friends and family.
to prepares you for unexpected expenses.
is used for anything listed on the budget.
An emergency fund removes the worry about expenses not in the budget.
When setting a budget, you can choose to make room for:
Financial goals
Entertainment expenses
Charitable donations
All of the above
Unexpected expenses like a speeding ticket...
can make it hard to stick to your budget.
may cause you to be unable to pay necessary bills.
should be planned for.
can be paid for out of 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.
Which of the following expenses would be a good reason to spend money from an emergency fund?
Repair your laptop that you use for homework.
Upgrade your phone to the latest model.
Buy new track shoes because they’re in style.
Purchase concert tickets to see your favorite artist.
An unanticipated expense that will make it difficult to get by day-to-day would be good for…
spending money from your “rent” envelope.
emergency fund spending.
tracking all of the money you spent in a month
getting an extra job so you can have money to cover that expense.
How can you ensure you don't go over your budget?
Round up your expense estimates to add a buffer
Use most of your budget for entertainment expenses
Find a friend that enjoys going shopping
Buy all of your wants at one time.
What budgeting tip(s) would help you to stay on track financially?
Find a friend with similar goals and hold each other accountable
Put aside fun money in your budget so you're not missing out
Only use your closest gas station to fill up gas
All of the above
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
