Fixed and variable expenses

Front

What is a fixed expense?

Back

A fixed expense is a cost that stays the same every month, like rent or a subscription.

Front

What is a variable expense?

Back

A variable expense is a cost that can change each month, like eating out or buying clothes.

Front

What is income?

Back

Income is money coming IN to your pocket.

Front

What are expenses?

Back

Expenses are money that you spend so it LEAVES your pockets.

Front

Give an example of a fixed expense.

Back

An example of a fixed expense is a Netflix subscription.

Front

Give an example of a variable expense.

Back

An example of a variable expense is going to the movies.

Front

What happens to your income if you have more expenses?

Back

If you have more expenses than income, you may run out of money.

Front

Can a variable expense become a fixed expense?

Back

Yes, if you regularly spend the same amount on something, it can become a fixed expense.

Front

Is a phone bill a fixed or variable expense?

Back

A phone bill is usually a fixed expense if the amount stays the same each month.

Front

What is a budget?

Back

A budget is a plan for how to spend your money.