EVERFI Module 3 Budgeting Test Questions and Answers

1 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:

2.           What should be considered when setting a budget?:  

3.           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.:  

4. 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:

5. 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.:

6. Which of the following should NOT be considered when setting a current budget?

-  Your financial goals

-  Future income

-  Needs and wants

-  Savings:

7. 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:

8.      When setting a budget, you should consider...:

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

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

11.  An emergency fund should NOT be used for...:

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

13.  What is NOT true about unexpected expenses?:

14.  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:

15.       The envelope method, notebook and pencil, and online software are all methods of .:

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

17.       What budgeting tip(s) would help you to stay on track financially?:

18.       What is NOT a good way to prevent unnecessary spending?:

19.       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.:

20. 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.: