Financial Literacy review

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change from month to month. Examples include rent or a monthly car payment.

Front

What is a variable expense?

Back

A variable expense is a cost that can change each month. Examples include repairs or groceries.

Front

Give an example of a fixed expense.

Back

Monthly rent for a house.

Front

Give an example of a variable expense.

Back

Repairing a flat tire.

Front

What type of expense is a monthly child care payment?

Back

Fixed expense.

Front

What type of expense is a monthly car payment?

Back

Fixed expense.

Front

What type of expense is a flat tire repair?

Back

Variable expense.

Front

What type of expenses do not happen each month and can change in price?

Back

Variable expenses.

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 fixed and variable expenses?

Back

Understanding these helps in budgeting and managing money effectively.