A flexible expense is a discretionary purchase that can be altered or eliminated without a significant downside. Flexible expenses should be included in a budget to manage an individual’s overall finances.

What are the 4 types of expenses?

Terms in this set (4)
Variable expenses. Expenses that vary from month to month (electriticy, gas, groceries, clothing).Fixed expenses. Expenses that remain the same from month to month(rent, cable bill, car payment)Intermittent expenses. Discretionary (non-essential) expenses.

In their most basic sense, fixed expenses do not change over time and flexible expenses do. In most individuals’ budgets, monthly mortgage or rent payments are fixed. Flexible expenses may change each month or only occur during certain times of the year.

What is an example of a flexible expense quizlet?

Flexible: expenses that can change from month to month. EX: groceries. Needs: Goods or services that are required such as food, clothing, shelter, health care.

The funds in an FSA can be used to purchase prescriptions, eyeglasses, dependent care, dental appointments, disability treatments, and many other medical expenses. A health savings account is similar to an FSA with both having slightly different processes and contribution limits.