Late fee and a monthly budget

What is a late fee?

A charge applied when a payment is not made by the due date.

How is a budget defined?

A plan for managing income and expenses over a set period.

True or false: A late fee can increase over time.

True, because many late fees are compounded.

Difference between fixed and variable expenses

Fixed expenses remain constant, while variable expenses can change each month.

What happens if you miss a rent payment?

You may incur a late fee and risk eviction.

Fill in the blank: A good budget should include ______.

savings, fixed costs, and discretionary spending.

What is discretionary spending?

Expenses that are not essential and can be adjusted based on budget.

Question: How can late fees impact your budget?

They can increase overall expenses and reduce available funds.

True or false: All late fees are the same.

False, because late fees vary by service or loan provider.

Monthly budget consists of _____ and ______.

income and expenses.

How often should you review your budget?

Monthly, to ensure it aligns with your financial goals.

What is the purpose of setting a budget?

To track spending and save for future needs.

Example of a fixed expense

Rent payment due each month.

What could happen if you consistently pay late?

You may damage your credit score and incur more fees.