Fixed and Variable Expenses

Is gas for a car a fixed or variable expense?

• Fixed expense

• Variable expense

• Occasional expense

• Unpredictable expense

Give an example of a variable expense.

• Buying new clothes.

• Paying rent.

• Buying groceries.

• Insurance premiums.

Give an example of a fixed expense.

• Monthly mortgage payment

• Grocery bills

• Utility bills

• Dining out expenses

What happens to variable expenses when you spend more?

• The total amount you spend decreases.

• The total amount you spend remains the same.

• The total amount you spend increases.

• The total amount you spend becomes fixed.

What is a variable expense?

• A cost that remains the same every month, such as rent or mortgage.

• A cost that can change from month to month, such as groceries or entertainment.

• A one-time payment that does not recur, like a car purchase.

• A fixed cost that is predictable and does not vary, like insurance premiums.

How often do fixed expenses occur?

• Once a year

• Irregularly, based on usage

• Regularly, usually monthly

• Only when income is received

What is a fixed expense?

• A cost that varies each month, such as groceries.

• A cost that does not change and occurs regularly, such as rent or a subscription.

• A one-time payment for a service or product.

• An expense that is only incurred during certain seasons.

Why is it important to track variable expenses?

• To understand spending habits and identify areas to save money.

• To increase fixed expenses.

• To avoid tracking overall budget.

• To ensure all expenses are variable.

What is the importance of budgeting for fixed and variable expenses?

• Budgeting helps manage money effectively by ensuring that both fixed and variable expenses are covered.

• Budgeting is only necessary for fixed expenses, not variable ones.

• Budgeting allows for unlimited spending without consequences.

• Budgeting is primarily used for saving money in a bank account.

Is a Netflix subscription a fixed or variable expense?

• A Netflix subscription is a fixed expense.

• A Netflix subscription is a variable expense.

• A Netflix subscription is a discretionary expense.

• A Netflix subscription is a one-time expense.