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 a gym membership.

Front

What is a variable expense?

Back

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

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 a haircut.

Front

Is a gym membership a fixed or variable expense?

Back

A gym membership is a fixed expense.

Front

Is a water bill a fixed or variable expense?

Back

A water bill is a variable expense.

Front

What type of expense is a concert ticket?

Back

A concert ticket is a variable expense.

Front

What type of expense is a mortgage payment?

Back

A mortgage payment is a fixed expense.

Front

How do fixed expenses affect budgeting?

Back

Fixed expenses help in creating a stable budget since they remain constant each month.

Front

How do variable expenses affect budgeting?

Back

Variable expenses can make budgeting more flexible but also more unpredictable.