Variable and Fixed Expenses

Front

What is a fixed expense?

Back

An expense that does NOT change over time.

Front

Give an example of a fixed expense.

Back

Rent.

Front

Which of the following is NOT a fixed expense: Mortgage payment, Car insurance, Dining out, Subscription services?

Back

Dining out.

Front

What is a variable expense?

Back

An expense that DOES change over time.

Front

Give an example of a variable expense.

Back

Groceries.

Front

What are the characteristics of fixed expenses?

Back

They remain constant regardless of usage or consumption.

Front

What are the characteristics of variable expenses?

Back

They fluctuate based on usage or consumption.

Front

How do fixed expenses affect budgeting?

Back

They provide stability and predictability in monthly budgets.

Front

How do variable expenses affect budgeting?

Back

They can lead to fluctuations in monthly budgets and require careful tracking.

Front

What is the difference between fixed and variable expenses?

Back

Fixed expenses do not change, while variable expenses can vary.