Types of Expenses

Front

What is the definition of Positive Net Worth?

Back

When the dollar value of a person's assets is greater than the dollar value of their liabilities.

Front

What is an example of an essential (variable) expense?

Back

Phone Bill.

Front

What type of expense is personal care (nail salons, haircare)?

Back

Discretionary expense.

Front

What type of expense do video games, magazines, and comic books fall under?

Back

Discretionary expense.

Front

What is an example of an essential (fixed) expense?

Back

Student Loan.

Front

Define Fixed Expense.

Back

An expense that does not change in amount and is paid regularly, such as rent or mortgage.

Front

Define Variable Expense.

Back

An expense that can vary in amount and is not paid regularly, such as groceries or entertainment.

Front

What is a Discretionary Expense?

Back

An expense that is not essential and can be adjusted or eliminated, such as dining out or vacations.

Front

What is the difference between Fixed and Variable Expenses?

Back

Fixed expenses remain constant, while variable expenses fluctuate based on usage or consumption.

Front

What is Net Worth?

Back

The difference between a person's total assets and total liabilities.