Podcast
Questions and Answers
Which of the following is NOT a good way to track your spending?
Which of the following is NOT a good way to track your spending?
Recurring expenses are expenses that occur every month.
Recurring expenses are expenses that occur every month.
True
The envelope method, notebook and pencil, and online software are all methods of ___
The envelope method, notebook and pencil, and online software are all methods of ___
tracking your spending
What is NOT a good way to prevent unnecessary spending?
What is NOT a good way to prevent unnecessary spending?
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When setting a budget, you can choose to make room for:
When setting a budget, you can choose to make room for:
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What should be considered when setting a budget?
What should be considered when setting a budget?
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Where should you look to find your current expenses when building your budget?
Where should you look to find your current expenses when building your budget?
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How can you ensure you don't go over your budget?
How can you ensure you don't go over your budget?
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Which of the following is NOT a benefit of using a budget?
Which of the following is NOT a benefit of using a budget?
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When setting a budget, you should consider...
When setting a budget, you should consider...
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They do not occur if you have a budget.
They do not occur if you have a budget.
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What budgeting tip(s) would help you stay on track financially?
What budgeting tip(s) would help you stay on track financially?
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Which of the following expenses would be a good reason to spend money from an emergency fund?
Which of the following expenses would be a good reason to spend money from an emergency fund?
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They should be planned for.
They should be planned for.
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An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for...
An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for...
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In addition to needs, what should you plan for first when creating a budget?
In addition to needs, what should you plan for first when creating a budget?
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Which of the following should NOT be considered when setting a current budget?
Which of the following should NOT be considered when setting a current budget?
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An emergency fund should NOT be used for...
An emergency fund should NOT be used for...
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Which of the following is a benefit of using a budget?
Which of the following is a benefit of using a budget?
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Which choice or choices best describes the purpose of an emergency fund?
Which choice or choices best describes the purpose of an emergency fund?
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Study Notes
Budgeting Concepts
- Tracking Spending: The least effective method is keeping track of expenses in your head.
- Recurring Expenses: These are fixed costs that occur monthly, such as rent or utilities.
- Methods of Tracking Spending: Effective ways include the envelope method, using a notebook, or employing online software.
Spending Prevention Strategies
- Avoiding Unnecessary Spending: Planning to buy all wants at once is not a good strategy for maintaining a budget.
Budgeting Essentials
- Budget Flexibility: When setting a budget, allocate resources to needs, wants, and savings.
- Expense Sources: Current expenses can be assessed through bank and credit statements.
Budget Management Tips
- Avoiding Over-budgeting: Round up expense estimates to create a financial buffer.
- Benefits of a Budget: A budget helps manage expenses but does not allow for unlimited purchases.
Planning for Future Needs
- Budget Considerations: Assess financial goals, current expenses, and income while budgeting.
- Unexpected Expenses: Having a budget does not eliminate unexpected costs; these should be anticipated.
Emergency Funds
- Usage of Emergency Funds: Appropriate uses include essential repairs, such as a laptop needed for schoolwork.
- Planning for Emergencies: Unexpected expenses should be planned for in your budgeting strategy.
- Emergency Fund Limitations: Funds should not be used for non-essential entertainment expenses, like going to the movies.
Overall Benefits of Budgeting
- Budgeting Tips: Incorporating various budgeting strategies can help maintain financial stability.
- Emergency Fund Purpose: The emergency fund is essential for handling unforeseen financial challenges and should serve multiple purposes.
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Description
Test your knowledge on budgeting with these flashcards from Module 3 of EVERFI. Each card covers essential concepts including tracking your spending and understanding recurring expenses. Perfect for anyone looking to improve their financial literacy.
