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 groceries or entertainment.

Front

Give an example of a fixed expense.

Back

An example of a fixed expense is a garbage pick-up bill.

Front

Give an example of a variable expense.

Back

An example of a variable expense is an ice cream cone.

Front

What type of expense is a gym membership?

Back

A gym membership is a fixed expense.

Front

What type of expense is a haircut?

Back

A haircut is a variable expense.

Front

What happens to variable expenses each month?

Back

Variable expenses can increase or decrease each month.

Front

What happens to fixed expenses each month?

Back

Fixed expenses remain the same each month.

Front

Is a doctor's visit a fixed or variable expense?

Back

A doctor's visit is a variable expense.

Front

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

Back

Knowing the difference helps in budgeting and managing money effectively.