Financial Literacy Vocabulary

Front

What is a variable expense?

Back

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

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change and is the same every month, like rent or a car payment.

Front

Give an example of a variable expense.

Back

A trip to the zoo.

Front

Give an example of a fixed expense.

Back

House rent or monthly payment.

Front

What is a financial institution?

Back

A financial institution is an organization that provides financial services, such as banks and credit unions.

Front

What services do financial institutions offer?

Back

They offer services like informing customers about their money, allowing withdrawals, and providing loans.

Front

Which of these is NOT offered by a financial institution?

Back

Telling customers how to spend their money.

Front

What is a monthly gas expense classified as?

Back

Variable expense.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses remain the same each month, while variable expenses can change.

Front

Why is it important to understand expenses?

Back

Understanding expenses helps in budgeting and managing money effectively.