Mastering Income and Expenses

Why is it important to track income and expenses?

• To increase spending without limits.

• To ignore financial goals and savings.

• To avoid budgeting altogether.

• It is important to track income and expenses to manage finances effectively and make informed financial decisions.

What are fixed expenses?

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

• Expenses that vary with production levels

• One-time costs for specific projects

• Costs that are only incurred during peak seasons

What are variable expenses?

• Variable expenses are costs that only occur annually regardless of usage.

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

• Variable expenses are fixed costs that do not change over time.

• Variable expenses are costs that are always predictable and consistent.

How can saving money impact your financial health?

• Saving money leads to increased debt.

• Saving money guarantees instant wealth.

• Saving money improves financial health by providing security, enabling investments, and reducing financial stress.

• Saving money has no effect on financial stability.

“You get $15 for cleaning your neighbor’s yard.”

• A) Gifted Income

• B) Earned Income

• C) Passive Income

• D) Surprise Income

“You get $20 from your grandma on your birthday.”

• A) Earned Income

• B) Fixed Income

• C) Gifted Income

• D) Passive Income

Fixed expenses are always the same amount.

• True
• False

Find out “Fixed” expenses:

• Movie ticket

• Monthly phone bill

• Grocery shopping

• Netflix subscription

You had to buy a new phone charger after yours broke. What kind of expense is that?"

• A) Planned

• B) Fixed

• C) Unplanned

• D) Variable

• Statement: "Gifted income means you worked hard for it."

• True
• False