Balanced Budget Scale

In the picture

1. 1The row of coins and the folded note on the left pan: income arriving.
2. 2The house key on the right pan: a fixed rent cost.
3. 3The bread loaf on the right pan: a variable food cost.
4. 4The bus ticket on the right pan: a variable transport cost.
5. 5The small piggy bank on the right pan: savings set aside.

Examples

• A monthly paycheck covers rent, groceries, bus fare, and a transfer to a savings account.
• A freelance payment is split between a phone bill, food, transport, and an emergency fund.

Quiz: Balanced Budget Scale (Age 18)

1. 1

   What is the main difference between fixed and variable expenses?

   • Fixed expenses stay roughly the same each month, while variable expenses change.
   • Variable expenses stay roughly the same each month, while fixed expenses change.
   • Both fixed and variable expenses change by the same amount each month.
2. 2

   According to the card, what helps a person avoid debt?

   • Spending all income before saving anything.
   • Saving regularly and keeping expenses below income.
   • Borrowing money to pay for variable expenses.
3. 3

   When is a personal budget balanced?

   • When income covers fixed costs and variable costs while some money is set aside.
   • When income covers only fixed costs and no savings are set aside.
   • When expenses are higher than income and the difference is borrowed.

The answers, each with its explanation, are in the app. This lesson has left the free week, so its quiz is part of the subscription.