Fixed and Variable Expenses

Front

What is a fixed expense?

Back

A fixed expense is a cost that does not change from month to month, such as rent or a subscription service.

Front

What is a variable expense?

Back

A variable expense is a cost that can fluctuate from month to month, such as groceries or utility bills.

Front

Give an example of a fixed expense in a household.

Back

Monthly rent or mortgage payment.

Front

Give an example of a variable expense in a household.

Back

The cost of food or entertainment expenses.

Front

Is a car payment considered a fixed or variable expense?

Back

Fixed expense.

Front

Is the electricity bill a fixed or variable expense?

Back

Variable expense.

Front

What type of expense are after-school snacks classified as?

Back

Variable expense.

Front

How can you differentiate between fixed and variable expenses?

Back

Fixed expenses remain constant, while variable expenses can change based on usage or consumption.

Front

What is the impact of fixed expenses on a budget?

Back

Fixed expenses create a predictable cost structure, making budgeting easier.

Front

What is the impact of variable expenses on a budget?

Back

Variable expenses can lead to fluctuations in budgeting, requiring careful monitoring.