Expenses are the costs of goods and services people pay for in their daily lives. Understanding expenses helps us make smart financial decisions.
Expenses are the money that goes out. Learning how to sort them helps us manage a budget wisely.
Fixed expenses are costs that stay the same amount each month. They do not change often, even if you use more or less of something.
Fixed expenses are predictable. They make it easier to plan a budget because the amount does not change.
Variable expenses are costs that can change from month to month. The amount depends on how much you use or choose to spend.
Variable expenses can go up or down. Paying attention to them helps control spending and save money.
Both fixed and variable expenses are important parts of a budget. Learning the difference helps us plan for needs and wants.
A good budget includes both types of expenses. Being aware of variable expenses gives more flexibility for saving and planning.