EPF 2.3 Review

What is one benefit of creating a budget?

• Helps track expenses

• Increases spending

• Reduces savings

• Complicates financial planning

Why is budgeting considered an essential life skill?

• It helps in making informed decisions about spending and saving

• It is necessary for learning mathematics

• It is required for writing essays

• It is used for planning vacations

Which of the following is a source of income?

• Expenses

• Wages

• Debts

• Loans

What are fixed expenses?

• Regular bills

• Changing costs

• Unexpected payments

• Discretionary spending

What percentage of each paycheck do financial experts suggest saving?

• 5%-10%

• 10%-20%

• 20%-30%

• 30%-40%

What does the "S" in SMART financial goals stand for?

• Simple

• Specific

• Secure

• Strategic

Which aspect of SMART goals involves setting a deadline?

• Specific

• Measurable

• Achievable

• Time-bound

What percentage of your budget should be allocated to needs according to the 50/30/20 rule?

• 20%

• 30%

• 50%

• 70%

Which of the following is a part of the monthly budget review process?

• Ignore reaching goals

• Celebrate reaching goals

• Spend more money

• Avoid planning

How does comparison shopping help consumers?

• By making them buy more expensive items.

• By helping them learn market prices.

• By reducing their shopping choices.

• By encouraging them to shop less.