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 mortgage payment.

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 paying rent.

Front

Give an example of a variable expense.

Back

An example of a variable expense is buying movie tickets.

Front

Is a water bill a fixed or variable expense?

Back

A water bill is typically considered a fixed expense.

Front

Is car repair a fixed or variable expense?

Back

Car repair is considered a variable expense.

Front

What are some common fixed expenses?

Back

Common fixed expenses include rent, mortgage payments, and insurance premiums.

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What are some common variable expenses?

Back

Common variable expenses include dining out, entertainment, and clothing.

Front

How can you track your fixed and variable expenses?

Back

You can track your expenses by keeping a budget or using an expense tracking app.

Front

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

Back

Knowing the difference helps in budgeting and managing personal finances effectively.