Fixed and Variable Expenses

Front

What is a fixed expense?

Back

Expenses that stay the same from week to week or month to month.

Front

What is a variable expense?

Back

Irregular expenses that change from week to week or month to month.

Front

Are after school snacks a fixed expense?

Back

False

Front

Is a loan payment a fixed expense?

Back

True

Front

Give an example of a fixed expense.

Back

Rent or mortgage payments.

Front

Give an example of a variable expense.

Back

Groceries or entertainment costs.

Front

What happens to fixed expenses over time?

Back

They usually remain the same unless there is a change in the agreement or contract.

Front

What happens to variable expenses over time?

Back

They can change based on usage or consumption.

Front

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

Back

It helps in budgeting and managing money effectively.

Front

Can fixed expenses ever change?

Back

Yes, but typically they remain constant for a set period.