12.6 Expenses
An expense is any outflow of money to cover a cost or obligation. They can be either fixed or non-fixed (see table below). By categorizing expenses, you can see which are essential, which are adjustable, and which might be reduced to increase your savings.
| Item | Fixed Expenses | Non-Fixed Expenses |
|---|---|---|
| Definition | Costs that remain the same each month over the course of a year. | Costs that fluctuate from month to month. |
| Examples | Rent, Insurance, car payment | Groceries, utility bills, and entertainment |
Activity
Consider the following expenses. Are they fixed or non-fixed? Drag each item to its corresponding type of expense.
Text Description
Two categories: Fixed Expenses and Non-Fixed Expenses
Draggable options: Car Payment, Groceries, Dining Out, Mortgage Payment, Health Insurance Premium, Clothing, Electricity Bill, Transportation, Student Loan Payment, Streaming Subscription
Correct Answers:
- Fixed Expenses: Car payment, Mortgage Payment, Health Insurance Premium, Student Loan Payment, Streaming Subscription
- Non-Fixed Expenses: Groceries, Dining Out, Clothing, Transportation, Electricity Bill
