Understanding Fixed and Variable Expenses

The video tutorial introduces the concept of personal financial literacy, focusing on fixed and variable expenses. It explains these concepts using examples like water bills, electricity bills, grocery bills, and mortgage payments. The tutorial also analyzes car payments to determine if they are fixed or variable expenses, concluding that they are typically fixed due to consistent monthly payments over a set period.

What is the main focus of the video tutorial?

• Understanding personal financial literacy

• Exploring historical events

• Studying scientific theories

• Learning advanced mathematics

Which state’s standard is being used in the video?

• California

• Florida

• New York

• Texas

What is a fixed expense?

• An expense that changes every month

• An expense that is optional

• An expense that remains the same each month

• An expense that is paid annually

Which of the following is typically a fixed expense?

• Water bill

• Electricity bill

• Grocery bill

• Mortgage payment

What does the term 'fixed' imply in fixed expenses?

• The expense is constant

• The expense is negotiable

• The expense is variable

• The expense is optional

What is a variable expense?

• An expense that is optional

• An expense that is paid annually

• An expense that changes based on usage

• An expense that remains constant

Which of the following is typically a variable expense?

• Rent

• Car payment

• Water bill

• Internet subscription

Why is a water bill considered a variable expense?

• It changes based on water usage

• It is a fixed monthly amount

• It is paid annually

• It is optional

How can an electricity bill be both fixed and variable?

• By changing the provider

• By paying a fixed amount each month

• By paying annually

• By using more electricity

What determines if an electricity bill is fixed or variable?

• The payment plan chosen

• The season of the year

• The location of the house

• The type of electricity used