Question

check your understanding
while reviewing the vocabulary words above, you learned about the three types of expenses, discretionary expenses, fixed expenses, and flexible expenses. your task is to match up the expense examples with the correct expense type. simply drag and drop the examples under the correct expense type.
discretionary expenses fixed expenses flexible expenses choices
buying subway for lunch
movie tickets
groceries
mortage payment
car payments
gas
rent payment
electricity bill
alternative activity

Explanation:

• Discretionary Expenses: These are non - essential expenses that can be cut back or eliminated. Buying Subway for lunch and Movie Tickets are not necessary for basic survival and can be chosen or not based on personal preference.
• Fixed Expenses: These are expenses that remain the same (or have a fixed amount) over a period. Mortgage Payment, Car Payments, and Rent Payment are typically fixed amounts that are paid regularly (e.g., monthly).
• Flexible Expenses: These are necessary expenses but the amount can vary. Groceries (the quantity and cost can vary), Gas (depending on usage), and Electricity bill (depending on consumption) fall into this category.

Answer:

• Discretionary Expenses: Buying Subway for lunch, Movie Tickets
• Fixed Expenses: Mortgage Payment, Car Payments, Rent Payment
• Flexible Expenses: Groceries, Gas, Electricity bill