Understanding Household Expenses

This video tutorial explains the three main categories of household expenses: fixed, variable, and saving expenses. Fixed expenses are regular and predictable, such as rent and utility bills. Variable expenses fluctuate with income changes and include discretionary spending like vacations. Saving expenses are funds set aside for future needs, such as retirement or emergencies. By understanding and classifying these expenses, individuals can better manage their finances and achieve financial stability.

What is the main feeling people experience at the end of the month regarding their expenses?

• Excitement

• Overwhelm

• Indifference

• Joy

Which of the following is NOT considered a fixed expense?

• Vacation

• Electricity bill

• Rent

• Telephone bill

What type of expenses are groceries and education classified under?

• Saving expenses

• Essential living expenses

• Discretionary expenses

• Debt payments

Which of the following is an example of a discretionary expense?

• Mortgage

• Groceries

• Vacation

• Electricity bill

How do variable expenses typically change?

• They decrease with income

• They remain constant

• They increase with income

• They are fixed

Which category of expenses includes money spent on wants rather than needs?

• Fixed expenses

• Variable expenses

• Saving expenses

• Essential expenses

What is the purpose of saving expenses?

• To cover daily needs

• To pay off debts

• To enjoy luxury items

• To prepare for future goals

Which of the following is NOT a goal-oriented saving expense?

• Emergencies

• Entertainment

• Education

• Retirement

What are the three main categories of household expenses?

• Fixed, Variable, and Saving

• Essential, Discretionary, and Debt

• Flexible, Fixed, and Luxury

• Income, Debt, and Savings

What should you do to manage your household expenses effectively?

• Save less

• Classify them accordingly

• Ignore them

• Spend more