Financial Literacy Exam (Everfi)
Questions and Detailed Answers 2026-
2027 Updated.
Why should you work to be an informed consumer? - Answer To get the most value for your
money
A 10-ounce bottle of your favorite lotion that you use each day costs $9.50. The 5-ounce bottle
only costs $5. Which is the better deal and why? - Answer The 10-ounce bottle is a better deal
because the price per unit is lower.
Which review of an online clothing store is more trustworthy and why?
REVEIW A: "All 5 shirts were high quality but small. Order a size up" (verified purchase).
REVIEW B: "I love everything from this site. Don't miss out on their great sales" (sponsored
review). - Answer REVEIW A is more trustworthy because it was a verified purchase.
What is an accurate statement about the benefits and risks of using credit cards to make
purchases? - Answer Credit cards come with fraud protection, but credit card numbers can be
copied by identity thieves.
What are some things that only a skilled consumer does? - Answer Research before buying,
buy only what you need, consider unit prices, choose the best payment method
What is a good way to make an informed decision about a purchase? - Answer Read reviews
from other customers
Are sponsored reviews or verified purchaser reviews more reliable? Why? - Answer Verified
purchaser reviews are more reliable because the reviewer isn't being paid for a positive review.
What is a risk of using cash? - Answer Not having fraud protection
Alida works from home. Out of the following items, which one is a want for her? Cell phone,
Internet, Groceries, Streaming Service - Answer Streaming Service
Jasmine just received her paycheck. To manage her money, she categorizes spending by needs,
wants, and savings and debts. What money management strategy is Jasmine following? -
Answer 50-30-20 Rule
, How is money divided using the 50-30-20 Method? - Answer Needs, wants, savings
Dominic has four unexpected expenses, including a broken tv, increased insurance costs, a
broken-down car, and a hole in a shoe. Which of these expenses would be considered an
emergency? - Answer car repairs
Which of the following describe needs? Electronics, food, shelter, entertainment, warmth -
Answer shelter, warmth, food
Tarik works in a restaurant and gets paid in cash. He's used to dealing in cash, but he needs a
system to help him physically divide his cash each month. What money management strategy
should Tarik use? - Answer Envelope Method
What can a budget help you do? - Answer Prioritize expenses and track spending
How can a budget help you reach your financial goals? - Answer Budgeting helps track
spending and increases savings
What should be prioritized when creating a budget? - Answer Needs and wants
What does "pay yourself first" mean? - Answer Put money in your savings account before you
pay other expenses
In the 50-30-20 rule, 50% of your income should be spent on.... - Answer Needs
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? - Answer Needs
What is the benefit of a checking account? - Answer It helps you spend money without
carrying cash.
Your favorite cousin Briar's birthday is coming up, and you'd like to gift her some money from
your checking account. What is the benefit of gifting money via check? - Answer It is safer
because you can trace the transaction.
Alejandro realized that he forgot his wallet when he was about to pay at a store. He only has his
smartphone with him. How can he make a payment with money from his checking account? -
Answer He can use a mobile payment app with his phone.
Questions and Detailed Answers 2026-
2027 Updated.
Why should you work to be an informed consumer? - Answer To get the most value for your
money
A 10-ounce bottle of your favorite lotion that you use each day costs $9.50. The 5-ounce bottle
only costs $5. Which is the better deal and why? - Answer The 10-ounce bottle is a better deal
because the price per unit is lower.
Which review of an online clothing store is more trustworthy and why?
REVEIW A: "All 5 shirts were high quality but small. Order a size up" (verified purchase).
REVIEW B: "I love everything from this site. Don't miss out on their great sales" (sponsored
review). - Answer REVEIW A is more trustworthy because it was a verified purchase.
What is an accurate statement about the benefits and risks of using credit cards to make
purchases? - Answer Credit cards come with fraud protection, but credit card numbers can be
copied by identity thieves.
What are some things that only a skilled consumer does? - Answer Research before buying,
buy only what you need, consider unit prices, choose the best payment method
What is a good way to make an informed decision about a purchase? - Answer Read reviews
from other customers
Are sponsored reviews or verified purchaser reviews more reliable? Why? - Answer Verified
purchaser reviews are more reliable because the reviewer isn't being paid for a positive review.
What is a risk of using cash? - Answer Not having fraud protection
Alida works from home. Out of the following items, which one is a want for her? Cell phone,
Internet, Groceries, Streaming Service - Answer Streaming Service
Jasmine just received her paycheck. To manage her money, she categorizes spending by needs,
wants, and savings and debts. What money management strategy is Jasmine following? -
Answer 50-30-20 Rule
, How is money divided using the 50-30-20 Method? - Answer Needs, wants, savings
Dominic has four unexpected expenses, including a broken tv, increased insurance costs, a
broken-down car, and a hole in a shoe. Which of these expenses would be considered an
emergency? - Answer car repairs
Which of the following describe needs? Electronics, food, shelter, entertainment, warmth -
Answer shelter, warmth, food
Tarik works in a restaurant and gets paid in cash. He's used to dealing in cash, but he needs a
system to help him physically divide his cash each month. What money management strategy
should Tarik use? - Answer Envelope Method
What can a budget help you do? - Answer Prioritize expenses and track spending
How can a budget help you reach your financial goals? - Answer Budgeting helps track
spending and increases savings
What should be prioritized when creating a budget? - Answer Needs and wants
What does "pay yourself first" mean? - Answer Put money in your savings account before you
pay other expenses
In the 50-30-20 rule, 50% of your income should be spent on.... - Answer Needs
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? - Answer Needs
What is the benefit of a checking account? - Answer It helps you spend money without
carrying cash.
Your favorite cousin Briar's birthday is coming up, and you'd like to gift her some money from
your checking account. What is the benefit of gifting money via check? - Answer It is safer
because you can trace the transaction.
Alejandro realized that he forgot his wallet when he was about to pay at a store. He only has his
smartphone with him. How can he make a payment with money from his checking account? -
Answer He can use a mobile payment app with his phone.
