Where Does the Money Go?

MONEY WORDS

New words for this lesson

fixed costmustan expense that stays the same every month

variable costmustan expense that changes from month to month

subscriptionnicea service you pay for every month, like music or streaming

balancenicewhat is left when you compare money in and money out

Say them out loud. Then use one word in a sentence.

THE BIG QUESTION

Spotify: fixed or variable?

Every expense is one of two types. Guess first, then check.

🤔 A music subscription — fixed or variable expense?

Show answer

Fixed. Same price, every month, automatically.

🤔 Pizza with friends — fixed or variable?

Show answer

Variable. Some months €0, some months €30. It changes.

🤔 Rent for a flat — fixed or variable?

Show answer

Fixed. Same amount every month — usually the biggest fixed cost in adult life.

TWO TYPES OF EXPENSES

Fixed and variable

📅 Fixed costs are like your school timetable — the same every week, you don't decide each time. Variable costs are like your weekend plans — they change, and you decide.

Why does this matter? Fixed costs leave your account even if you do nothing. Variable costs are the ones you can change quickly.

✍️ Chat sort: I write an expense — you answer F (fixed) or V (variable): phone contract · cinema · monthly bus pass · snacks · birthday gifts

A REAL EXAMPLE

Where does Alex's money go?

Alex is 16. Money in: €50 pocket money + €100 from a weekend job = €150 income. Money out:

Expense	Type
Phone contract	fixed	€20

Bus pass	fixed	€30

Snacks & food out	variable	€25

Games & fun	variable	€30

Gifts	variable	€10

🤔 Income €150, expenses €115. What is Alex's balance at the end of the month?

Show answer

€150 − €115 = €35 left. That is a positive balance — money Alex can save or spend next month. Next lesson we turn this into a real budget.

YOUR TURN

Look at your own money

✍️ In the chat: one expense in your life that is a need — and one that is a want. (No amounts needed — just the things.)