EverFi Budgeting Quiz and Flashcards for Answers

Questions and Answers

Which of the following is a benefit of using a budget? (Select all that apply)

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 (correct)

Why is using a budget beneficial? (Select all that apply)

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 (correct)

Which of the following should you consider when setting a budget? (Select all that apply)

Savings

All the above (correct)

Needs and wants

Your financial goals

Where should you look to find your current expenses when building your budget?

Bank and credit statements Signup and view all the answers

In addition to needs, what should you plan for first when creating a budget?

Recurring expenses Signup and view all the answers

In your budgeting process, when should you look at recurring expenses?

Before reviewing your wants Signup and view all the answers

Which of the following statements is TRUE?

None of the above. Signup and view all the answers

Which of the following is a way to track your spending? (Select all that apply)

All of the above Signup and view all the answers

Which of the following is NOT a good way to track your spending?

In your head Signup and view all the answers

Which choice or choices best describes the purpose of an emergency fund? (Select all that apply)

All of the above are good reasons to have an emergency fund. Signup and view all the answers

This helps you prepare for unexpected expenses.

Emergency fund Signup and view all the answers

When setting a budget, you can choose to make room for: (Select all that apply)

All of the above Signup and view all the answers

Which of the following is TRUE regarding unexpected expenses?

They should be planned for Signup and view all the answers

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 Signup and view all the answers

An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for...

Emergency fund spending Signup and view all the answers

How can you ensure you don't go over your budget?

Round up your expense estimates to add a buffer Signup and view all the answers

What budgeting tip(s) would help you stay on track financially?

Find a friend with similar goals and hold each other accountable Signup and view all the answers

Study Notes

Budgeting Benefits

A budget helps keep track of income and prioritize spending.
It assists in achieving both short-term and long-term financial goals.
All mentioned factors contribute significantly to effective budgeting.

Setting a Budget

Important considerations include financial goals, differentiating needs from wants, and planning for savings.
Identify current expenses by reviewing bank and credit statements for accuracy.

Planning for Expenses

Prioritize recurring expenses, as they are predictable and essential financial commitments.
Review recurring expenses first before looking at discretionary items like entertainment.

Understanding Recurring Expenses

Recurring expenses must be planned; they are consistent and necessary costs.
They should be recognized as significant elements of a budget, not neglected.

Tracking Spending

Effective methods to track spending include using a spreadsheet, envelope budgeting method, or financial tracking apps.
Not recommendable: relying on memory or mental calculation for tracking expenses.

Emergency Funds

An emergency fund is critical for covering unexpected expenses, preventing reliance on friends or family for financial aid.
Good reasons to maintain an emergency fund include preparedness for unforeseen costs and reducing financial stress.

Budget Flexibility

Budgets can be adaptable to include financial goals, entertainment, and charitable donations.
Unexpected expenses should be anticipated and included in the budgeting process.

Handling Unexpected Expenses

An emergency fund is specifically for handling unanticipated financial burdens, like urgent laptop repairs.
Distinguish between essential expenses and unnecessary expenditures when depleting the emergency fund.

Budget Adherence Tips

To prevent overspending, round up expense estimates to create a buffer within the budget.
Accountability partnerships with friends can reinforce financial discipline and adherence to budgeting goals.

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Description

Test your knowledge with the EverFi Budgeting Review flashcards. This quiz covers the benefits of budgeting, including tracking income, prioritizing expenses, and achieving financial goals. Perfect for anyone looking to improve their financial literacy.