Question 1

What is a fixed cost?

Accepted Answer

Any expense you have where you can easily predict the exact amount you have to pay towards it each period.

Answer

Any expense that you've adjusted to make it fit your budget better - you fixed it.

Answer

Any expense that has a cost that will never change and cannot be changed.

Question 2

How are costs related to needs?

Accepted Answer

Both of these.

Answer

Because nothing is free, anything you need will inevitably be a cost.

Answer

Because needs are essential to living, you need to be able to budget for them.

Answer

Neither of these.

Question 3

Is saving for retirement a fixed cost or a variable cost?

Accepted Answer

Fixed cost. You are able to easily predict each month what you pay into your retirement savings.

Answer

Variable cost. You might pay different amounts into your savings each month.

Answer

It depends on the kind of retirement savings you have.

Question 4

Is making a living wage a want or a need?

Accepted Answer

A need. You have to be able to meet your expenses.

Answer

A want. You should be able to survive on minimum wage.

Answer

It's impossible to tell without more information.

Question 5

How is budgeting important for maintaining your desired standard of living?

Accepted Answer

Everything costs money, so knowing how you're going to pay for what you want and need is important.

Answer

A budget can certainly be helpful, but is not necessary for maintaining a standard of living.

Answer

Keeping a detailed budget means you can find ways to change your standard of living.

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