Understanding Financial Capabilities

Fixed expenses are costs that only occur during peak seasons.

Fixed expenses are regular, recurring costs that do not fluctuate with production or sales volume.

Fixed expenses are optional costs that can be avoided.

Fixed expenses are one-time costs that vary each month.

Groceries

Utilities

Car Payments

Rent, Insurance Premiums

Variable expenses are predictable; fixed expenses are unpredictable.

Fixed expenses vary with production levels; variable expenses remain the same.

Fixed expenses are always higher than variable expenses.

Fixed expenses are constant; variable expenses change with activity.

Costs that are always predictable and stable

Expenses that are not related to consumption or usage

Variable expenses are costs that vary in amount and frequency, depending on consumption or usage.

Fixed expenses that remain constant each month

car insurance

rent payments

mortgage payments

groceries, entertainment, utility bills

Variable expenses are fixed costs like rent and utilities.

Variable expenses are always the same every month.

Variable expenses include savings and investments.

Variable expenses are those that change month to month, such as groceries, dining, and entertainment.

Take home pay is the amount spent on living expenses.

Take home pay is the total salary before taxes.

Take home pay is the net income received by an employee.

Take home pay is the gross income before deductions.

Take home pay = Net income - Deductions

Take home pay = Gross income + Taxes

Take home pay = Gross income - Taxes + Bonuses

Take home pay = Gross income - (Taxes + Other deductions)

Property taxes and utility bills

Homeowners insurance premiums

Credit card interest payments

Federal and state taxes, Social Security and Medicare contributions, retirement plan contributions, health insurance premiums.

Surplus is the amount of money spent on investments.

Surplus is the excess of income over expenditures.

Surplus refers to the total expenses incurred.

Surplus is the total amount of debt owed.