Fixed and variable expenses

Front

What is a fixed expense?

Back

A fixed expense is a cost that stays the same every month, like rent or a subscription.

Front

What is a variable expense?

Back

A variable expense is a cost that can change each month, like groceries or entertainment.

Front

Can an electric bill be a fixed expense?

Back

Yes, an electric bill can be a fixed expense if it is the same amount every month, but it can also vary.

Front

What are expenses?

Back

Expenses are money that you spend so it leaves your pockets.

Front

Give an example of a fixed expense.

Back

An example of a fixed expense is a monthly car payment.

Front

Give an example of a variable expense.

Back

An example of a variable expense is buying snacks or going to the movies.

Front

What happens to your budget if you have more variable expenses?

Back

If you have more variable expenses, your budget can change each month, making it harder to plan.

Front

Why is it important to know the difference between fixed and variable expenses?

Back

Knowing the difference helps you manage your money better and plan for savings.

Front

What is a budget?

Back

A budget is a plan for how to spend your money each month.

Front

How can you reduce variable expenses?

Back

You can reduce variable expenses by cutting back on things like eating out or buying new clothes.