Exploring Fixed and Variable Expenses

The video tutorial, created by Miss Moore, explains the concepts of fixed and variable expenses. Fixed expenses are those that remain constant each week, such as rent, car payments, and subscriptions. Variable expenses fluctuate weekly, including groceries, entertainment, and utility bills. The major difference between the two is that fixed expenses do not change, while variable expenses do. The tutorial aims to help viewers define, compare, and categorize these expenses effectively.

What is an expense in terms of personal finance?

• The amount of money received from a job

• The amount of money spent on purchases

• The amount of money invested in stocks

• The amount of money saved in a bank

Which of the following is a fixed expense?

• Monthly rent payment

• Weekly grocery shopping

• Electricity bill

• Gasoline for a car

Which of these is typically a fixed expense?

• Utility bills

• Dining out

• Rent payments

• Clothing purchases

What type of expense would a monthly internet subscription be classified as?

• Flexible expense

• Intermittent expense

• Fixed expense

• Variable expense

What characterizes a variable expense?

• It is a one-time expense

• The cost varies from one period to another

• It is not necessary for basic living

• The cost is consistent every period

Which example fits a variable expense?

• Car insurance

• Subscription to Netflix

• Electricity usage bills

• Mortgage payments

What is the main difference between fixed and variable expenses?

• Fixed expenses remain the same; variable expenses vary

• Fixed expenses can be changed; variable cannot

• Variable expenses are generally larger than fixed expenses

• Variable expenses are more predictable than fixed