Fixed and Variable Expenses

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change from month to month, such as rent or mortgage payments.

Front

What is a variable expense?

Back

A variable expense is a cost that can change from month to month, such as groceries or entertainment.

Front

Give an example of a fixed expense.

Back

An example of a fixed expense is a mortgage payment.

Front

Give an example of a variable expense.

Back

An example of a variable expense is groceries.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain the same each month, while variable expenses can fluctuate.

Front

Why is it important to understand fixed and variable expenses?

Back

Understanding fixed and variable expenses helps in budgeting and managing money effectively.

Front

What type of expense is a monthly subscription service?

Back

A monthly subscription service is typically a fixed expense.

Front

What type of expense is a one-time purchase, like a concert ticket?

Back

A one-time purchase, like a concert ticket, is a variable expense.

Front

How can variable expenses affect a budget?

Back

Variable expenses can make budgeting more challenging because they can change each month.

Front

What is an example of a fixed expense that many people have?

Back

An example of a fixed expense that many people have is car insurance.