EverFi Budgeting Review Questions and
Answers | Latest Version | 2024/2025 |
Graded A+
What is the primary purpose of a budget?
A) To limit spending
B) To track income and expenses
C) To eliminate all unnecessary purchases
D) To save for retirement
✔✔ B) To track income and expenses
Which of the following is considered a fixed expense?
A) Groceries
B) Rent or mortgage payments
C) Utility bills
D) Entertainment costs
✔✔ B) Rent or mortgage payments
What is a variable expense?
1
,A) An expense that remains constant each month
B) An expense that fluctuates based on usage or spending habits
C) An expense related to savings
D) An expense that is required by law
✔✔ B) An expense that fluctuates based on usage or spending habits
What is the first step in creating a personal budget?
A) Tracking expenses
B) Setting financial goals
C) Estimating income
D) Analyzing past spending habits
✔✔ C) Estimating income
What is the 50/30/20 rule in budgeting?
A) 50% needs, 30% wants, 20% savings
B) 50% savings, 30% needs, 20% wants
C) 50% wants, 30% savings, 20% needs
D) 50% income, 30% investments, 20% expenses
2
, ✔✔ A) 50% needs, 30% wants, 20% savings
What should you do if your expenses exceed your income?
A) Ignore the issue and hope it resolves itself
B) Increase your income by getting a second job
C) Reduce discretionary spending
D) Increase your fixed expenses
✔✔ C) Reduce discretionary spending
What is an emergency fund?
A) A fund for planned vacations
B) Money set aside for unexpected expenses
C) A savings account for retirement
D) A budget for monthly expenses
✔✔ B) Money set aside for unexpected expenses
Why is it important to track your spending?
A) To find out how much you can borrow
3
Answers | Latest Version | 2024/2025 |
Graded A+
What is the primary purpose of a budget?
A) To limit spending
B) To track income and expenses
C) To eliminate all unnecessary purchases
D) To save for retirement
✔✔ B) To track income and expenses
Which of the following is considered a fixed expense?
A) Groceries
B) Rent or mortgage payments
C) Utility bills
D) Entertainment costs
✔✔ B) Rent or mortgage payments
What is a variable expense?
1
,A) An expense that remains constant each month
B) An expense that fluctuates based on usage or spending habits
C) An expense related to savings
D) An expense that is required by law
✔✔ B) An expense that fluctuates based on usage or spending habits
What is the first step in creating a personal budget?
A) Tracking expenses
B) Setting financial goals
C) Estimating income
D) Analyzing past spending habits
✔✔ C) Estimating income
What is the 50/30/20 rule in budgeting?
A) 50% needs, 30% wants, 20% savings
B) 50% savings, 30% needs, 20% wants
C) 50% wants, 30% savings, 20% needs
D) 50% income, 30% investments, 20% expenses
2
, ✔✔ A) 50% needs, 30% wants, 20% savings
What should you do if your expenses exceed your income?
A) Ignore the issue and hope it resolves itself
B) Increase your income by getting a second job
C) Reduce discretionary spending
D) Increase your fixed expenses
✔✔ C) Reduce discretionary spending
What is an emergency fund?
A) A fund for planned vacations
B) Money set aside for unexpected expenses
C) A savings account for retirement
D) A budget for monthly expenses
✔✔ B) Money set aside for unexpected expenses
Why is it important to track your spending?
A) To find out how much you can borrow
3
