Living Independently

Question 1

What are expenses

Answer 1

Expenses are the cost of goods and services for daily living. There are expenses that are considered fixed and expenses that are considered variable.

Question 2

Fixed expenses

Answer 2

Fixed expenses are expenses that are paid monthly and cost the same amount.
Usually fixed expenses are essentials. Some examples of fixed expenses include:
•Rent
• Car payments o Wifi
• Although the price of fixed expenses may vary depending on your living location, type of vehicle, or wifi provider, the amount each month will not change.

Question 3

Variable expenses

Answer 3

Variable expenses are expenses that change in cost from month to month. Expenses such as power or water usage can vary depending on monthly usage. Other examples of variable expenses includes:
o Fuel for vehicle
• Groceries
• Outings and social events (going out for supper, to the movies, etc.) o Shopping (anything that you might want from a store)

Question 4

Income and pay

Answer 4

Income and Pay
> Income is the money you earn on a regular basis, such as bi-weekly, bi-monthly, monthly, etc. and is earned through work or investments. For this class, we will be focusing primarily on income earned through work. Income can be categorized as gross income and net income.
• Gross Income can also be known as gross pay, and is an individual’s total earnings before taxes or other deductions.
• Net Income is the total amount of income remaining after deductions are taken from your gross income.

Question 5

Deductions

Answer 5

Deductions
> Deductions are the amount that is deduced (taken away) from your gross income.
Most common deductions are known as tax deductions.

Question 6

Budget

Answer 6

Budget
A Budget is an estimate of your income and expenses for a set period of time (weekly, monthly, yearly, ect.).

Question 7

Disposable income

Answer 7

Any income remaining after all essential expenses have been paid for.