Name two types of expenses.
- Fixed & Variable
- Fixed & Not Fixed
- Variable & Non Variable
Fixed expenses don't change from month to month, like rent or car payments. Variable expenses can change, like groceries or entertainment. It's important to budget for both types of expenses.
Understanding Fixed and Variable Expenses
Fixed Expenses: These are expenses that occur on a regular basis and are the same amount each month. Examples include rent, car payments and insurance. Variable Expenses: These are expenses that change from month to month and can include groceries, gas, and entertainment. Budgeting: This is the process of planning how you will spend and save your money. A budget helps you keep track of your spending and make sure you have enough money for your fixed and variable expenses.
What kind of expenses do you think are best for a family budget?
- Fixed expenses
- Variable expenses
- Both fixed and variable expenses
- Neither fixed nor variable expenses
Fixed expenses are the same amount each month, while variable expenses can change from month to month. Fixed expenses can include rent, insurance, and loan payments, while variable expenses can include entertainment, groceries, and utilities. Fixed expenses are typically necessary, while variable expenses are considered optional and discretionary.
Did you know?
"What would be the best way for a fourth grader to calculate their own profit from a lemonade stand?"
Profit is the money you make after selling something and subtracting the cost. To calculate profit, subtract the cost from the sale price. The higher the profit, the more money you make!
What is the difference between a profit and a loss?
- Profit is negative & loss is positive .
- Loss is negative & Profit is positive .
- There is no difference.
The first profit-sharing plan in the US was created by the American Express Company in 1875. Calculating profit also includes taking into account any losses incurred during the same period. Profit and loss statements can be used to calculate a company's net worth - the total value of all its assets minus liabilities.
Did you know?
What do you think is the most important factor when calculating profit?
What are some examples of fixed expenses that a business might have?