Family & Consumer Science: 1.03-- Expenses

These are expenses that are absolutely necessary.

• Discretionary expenses
• Optional expenses
• Luxury expenses
• Nondiscretionary

These items are not essential things you need.

• Essential items
• Mandatory items
• Required items
• Discretionary

These are expenses that stay the same month after month.

• Variable expenses
• Unexpected costs
• One-time expenses
• Fixed expenses

These are expenses that change from month to month.

• Fixed expenses
• One-time expenses
• Variable expenses
• Irregular expenses

What kind of expense can your gym membership be considered?

• Discretionary expense
• Fixed expense
• Variable expense
• Essential expense

What kind of expense is your monthly rent?

• Fixed expense
• Unexpected expense
• Variable expense
• Nondiscretionary expense

Which are discretionary and nondiscretionary?

Groups:

(a) Discretionary

,

(b) Nondiscretionary

• Groceries

• Cable TV

• Going out to dinner

• Tickets to a sporting event

• Rent

• Gasoline

(a)   costs, such as your rent, will always be the same.

Fixed costs will always be the same. You cannot change them, and you must pay them each (a)   .

Fixed variable costs can...

• be controlled

• be unfixed

• be unbearable

• be tremendous