EVERFI Module 3 Budgeting Study Guide Questions and Correct Answers

EVERFI Module 3 - Budgeting Study Guide Questions and Correct Answers Which of the following is a benefit of using a budget? a. Helps to keep track of the money you receive b. Helps to prioritize your spending c. Helps reach short- and long-term financial goals d. All of the above Which of the following is NOT a benefit of using a budget? a. a budget can help you purchase anything you want. b. a budget can help you keep track of your money. c. a budget can help you make plans to reach your financial goal. d. a budget can help you decide the importance of your expenses. Why is using a budget beneficial? a. helps to keep track of the money you receive. b. helps to prioritize your spending. c. helps reach short- and long-term financial goals. d. All of the above. Which of the following should NOT be considered when setting a current budget? a. your financial goals b. future income c. needs and wants d. savings Which of the following should you consider when setting a budget? a. your financial goals b. needs and wants c. savings d. all the above What should be considered when setting a budget? a. needs and wants b. savings c. time management goals d. needs, wants, and savings ______________ are good places to look to find your current expenses when building your budget. a. banks and credit unions b. grocery stores and concerts c. banks and credit statements d. online research websites Where should you look to find our current expenses when building your budget? a. ask your parents b. your wallet c. bank and credit statements d. your bank representative Bank statements, credit statements, and records of cash expenses help you to estimate your __________________. a. credit score b. emergency fund needs c. expenses d. available investments In addition to needs, what should you plan for first when creating a budget? a. possible charitable donations b. shopping money c. investments d. recurring expenses In your budgeting process, when should you look at recurring expenses? a. before reviewing your wants b. after considering entertainment expenses c. before looking at your needs d. after your wants but before your needs Which of the following statements is TRUE? a. recurring expenses don't need to be planned for because they rarely happen. b. recurring expenses are expenses that can never be stopped. c. recurring expenses should be planned for after looking at your wants. d. none of the above. Which of the following is a way to track your spending? a. spreadsheet budget b. envelope method c. an app d. all of the above The envelope method, notebook and pencil, and online software are all methods of _______________. a. planning for you future b. understanding your current expenses c. estimating your unexpected expenses d. tracking your spending Which of the following is NOT a good way to track your spending? a. in your head b. notebook and pencil c. envelope method d. online software or app Which choice or choices best describes the purpose of an emergency fund? a. an emergency fund prepares you for unexpected expenses b. an emergency fund keeps you from borrowing money from friends and family c. an emergency fund removes the worry about expenses not in the budget. d. All of the above are good reasons to have an emergency fund. Which of the following is NOT true about emergency funds? a. they are used for anything listed on the budget. b. they can keep you from borrowing money from friends and family. c. they can help you prepare for unexpected expenses. d. they can help remove the worry about expenses not n the budget. This helps you prepare for unexpected expenses. a. credit cards b. checking account c. emergency fund d. none of the above When setting a budget, you can choose to make room for: a. financial goals b. entertainment expenses c. charitable donations d. all of the above Charitable donations, entertainment expenses, and financial goals are all examples of ... a. activities that contribute to overspend b. things that are considered needs. c. activities that are necessary for healthy lifestyle. d. things to consider when creating a budget. When setting a budget, you should consider... a. financial goals, current expenses, and income. b. mostly income c. creative ways to spend your money d. mostly your goals Unexpected expenses... a. can make it hard to stick to your budget. b. may cause you to be unable to pay necessary bills. c. should be planned for. d. all of the above. Which of the following is TRUE regarding unexpected expenses? a. they usually don't affect your budget b. they should be planned for c. they usually don't affect your ability to pay bills. d. they should not be included in your budget. What is NOT true about unexpected expenses? a. They do not occur if you have a budget b. they could impact your budget in a negative way c. they could interfere with your ability to pay your bills d. they should be planned for so that you can keep within your budget Which of the following expenses would be a good reason to spend money from an emergency fund? a. repair your laptop that you use for homework b. upgrade your phone to the latest model c. buy new track shoes because they are in style d. purchase concert tickets to see your favorite artist An emergency fund should NOT be used for... a. fixing, a blown tire on your car that you use to get to work b. repairing your laptop that you use for school work c. a last-minute school trip d. a sudden health issue that need care. An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for... a. spending money from your rent envelope b. emergency fund spending c. tracking all of the money you spent in a month ng an extra job so you can have money to cover that expense. What is NOT a good way to prevent unnecessary spending? a. cancel any unused recurring expenses like subscription boxes b. use an app to find the cheapest gas station c. make your own food more often d. buy all of your wants at one time. How can you ensure you don't go over your budget? a. round up your expense estimates to add a buffer b. use most of your budget for entertainment expenses c. find a friend that enjoys going shopping. d. buy all of your wants at one time. What budgeting tip(s) would help you stay on track financially? a. find a friend with similar goals and holds each other accountable b. put aside fun money in your budget so you're not missing out c. only use your closest gas station to fill up gas d. all of the above