Question

everfi assessment a- requires responsus lockdown
started: dec 18 at 7:34am
quiz instructions
everfi assessment rubric
level 4 = 3.6 - 4 (90 to 100%)
level 3 = 3.2 - 3.5 (80 to 89%)
level 2 = 2.8 - 3.1 (70 to 79%)
level 1 = 2.4 - 2.7 (60 to 69%)

question 3
how can a budget help you reach your financial goals?
budgeting reduces credit card interest rates.
budgeting can help you make smart investments.
budgeting helps track spending and increases savings.
budgeting allows you to earn more money over time.

Explanation:

To determine the correct answer, we analyze each option:

• "Budgeting reduces credit card interest rates": Budgets don't directly affect credit card interest rates (set by lenders), so this is incorrect.
• "Budgeting can help you make smart investments": While budgeting frees up money for investments, its primary role isn't directly about investment decisions; this is less accurate.
• "Budgeting helps track spending and increases savings": A budget tracks income and expenses, identifying areas to cut back, which increases savings—key for financial goals. This matches the core purpose of budgeting.
• "Budgeting allows you to earn more money over time": Budgets manage money, not increase earnings (earnings depend on income sources like work, investments separate from budgeting). So this is incorrect.

Answer:

C. Budgeting helps track spending and increases savings.