Everfi - Financial Literacy Questions and Answers 100% Pass 2026/2027 (5pages)

W-4 ✔✔Tells your employer how much federal income tax to withhold from your paychecks to send to the IRS Benefits available from your employer ✔✔Healthcare, paid time off, disability insurance, and matching contributions to a retirement account Gig Economy ✔✔A flexible market that allows you to work short-term, independent jobs Possible tax or deduction which may show up on your paycheck ✔✔Federal income tax, Contributions to retirement savings, FICA What do you need in order to fill out your 1040 ✔✔W-2, Your routing and bank number, A record of any other supplemental income There is no relationship between the level of education received and lifetime earnings (T/F) ✔✔False W-2 ✔✔A document your employer sends you that tells you how much you've made and how much you've paid in taxes in the last year When considering a job offer, you should only consider how much you're being paid before you accept the offer. (T/F) ✔✔False Net Pay ✔✔The amount of money you're paid, after all taxes and deductions are taken out of your paycheck is Good ways to track your budget ✔✔Notebook and pencil, Online software app, Envelope method In your budgeting process, you look at recurring expenses before reviewing your wants (T/F) ✔✔True Things to consider when creating a budget ✔✔Charitable donations, entertainment expenses, and financial goals Bank statements, credit statements, and records of cash expenses help you to estimate your __. ✔✔Expenses Rounding up your expense estimates to add a buffer with help ensure you don't go over your budget (T/F) ✔✔True Benefits of using a budget ✔✔Helps keep track of money you receive, helps to prioritize your spending, helps reach short- and long-term financial goals Unexpected expenses should be planned for (T/F) ✔✔True Emergency Fund ✔✔Helps you prepare for unexpected expenses What should you consider when setting a budget ✔✔Needs and wants Going directly to a car dealer for a loan to keep things simple is a... ✔✔Not great because they typically offer higher interest rates Using a loan could help you purchase a house (T/F) ✔✔True