A
Fixed expenses are costs that ___ ____ change over time
do not
What is one benefit to fixed expenses?
-consistent
-predictable
-easy to budget
Variable expenses are costs that ______ frequently.
change
Anthony pays $40 per month for his cell phone and $12 per day on lunch. Some weeks he buys drinks and snacks at the Arizona Market after school. This month his computer needed some unexpected repairs that were not very cheap.
Identify the variable expenses
drinks/snacks, computer repairs
Anthony pays $40 per month for his cell phone and $12 per day on lunch. Some weeks he buys drinks and snacks at the Arizona Market after school. This month his computer needed some unexpected repairs that were not very cheap.
Identify the fixed expenses
cell phone, lunch.
Charis earns $100 a month babysitting part time. She spends $17 a month on netflix and $15 a month on spotify. Sometimes she likes to go to the movies with friends on the weekends. This month she used some of her babysitting money to buy a new hat and jacket.
-Identify the fixed expenses
netflix, spotify
Why can budgeting for variable expenses be tricky?
You don't know how much they will cost. They chance frequently.
David has a monthly budget of $80. He spends $20 each month on a gym membership. This month he also decided to spend some money on entertainment and buy a ticket for the UA basketball game with some friends. He decided to buy some popcorn and a soda while he was there. In addition, David had to spend some money on a new pair of shoes to wear to Project Search each day.
Identify the variable expenses.
basketball game, popcorn, soda. New shoes
Yoel has a monthly budget of $80. He spends $20 each month on a gym membership. This month he also decided to buy a ticket for the UA basketball game with some friends. He decided to buy some popcorn and a soda while he was there. In addition, Yoel had to spend some money on a new pair of shoes to wear to Project Search each day.
Identify the fixed expenses.
gym membership
This month, Emma just got a job at a local restaurant. She had to buy a pair of shoes and a new belt as part of her required uniform. In her free time, she enjoys occasionally going to a concert and sometimes likes to buy food while she is there. She also likes video games and pays for a monthly subscription to her favorite gaming service.
Identify the fixed expense
gaming service
Juan earns $100 a month babysitting part time. He spends $15 a month on Hulu and $25 a month on YouTube Premium. Sometimes he likes to go to concerts with friends on the weekends. This month he used some of his babysitting money to buy a new hat and jacket.
-Identify the variable expenses
concert, hat, jacket
Give one example of a variable expense
clothes, utilities, groceries, gas, entertainment, etc.