Economics > EXAM > EVERFI Module 3 Budgeting Answers (All)

EVERFI Module 3 Budgeting Answers

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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 - -In your head -What should be considered when setting a budget? - -Needs, wants, and savings -Which choice or choices best describes the purpose of an emergency fund? - An emergency fund prepares you for unexpected expenses. - An emergency fund keeps you from borrowing money from friends and family. - An emergency fund removes the worry about expenses not in the budget. - All of the above are good reasons to have an emergency fund. - -All of the above are good reasons to have an emergency fund. -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 occur every month. - Recurring expenses should be planned for after looking at your wants. - None of the above - -Recurring expenses are expenses that occur every month. -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. - -Repair your laptop that you use for homework. -Which of the following should NOT be considered when setting a current budget? - Your financial goals - Future income - Needs and wants - Savings - -Future income -Which of the following is a benefit of using a budget? 1. Helps to keep track of the money you receive 2. Helps to prioritize your spending 3. Helps reach short- and long-term financial goals 4. All of the above - -4. All of the above -When setting a budget, you should consider... - -financial goals, current expenses, and income. -An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for... - -emergency fund spending. -How can you ensure you don't go over your budget? - -Round up your expense estimates to add a buffer -An emergency fund should NOT be used for... - -Going to the movies. -Where should you look to find your current expenses when building your budget? - -bank and credit statements -What is NOT true about unexpected expenses? - -They do not occur if you have a budget. -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 - -d. All of the above -The envelope method, notebook and pencil, and online software are all methods of . - -tracking your spending -In addition to needs, what should you plan for first when creating a budget? - -Recurring expenses -What budgeting tip(s) would help you to stay on track financially? - -Find a friend with similar goals and hold each other accountable -What is NOT a good way to prevent unnecessary spending? - -Buy all of your wants at one time. -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. - -A budget can help you purchase anything you want. -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. - -They should be planned for. -

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