Debit Cards V Credit Cards
When you’re under 18, you’re lucky! You can’t get into trouble with credit cards as you are under the legal age! But a lot of young people are encouraged to get credit cards when they turn 18! Beware as misuse of a credit card is one of the easiest ways to get into debt.
Let’s first look at the differences between the two. A debit card gives you access to your own money, so you are limited to withdraw or spend only as much as is in your account. When you turn 18...
Cashflow - fixed and variable costs
When you look at your spending patterns, you'll see some expenses that occur week in, week out and the amount remains pretty stable. These are known as your fixed costs.
Then there are the one-off or irregular expenses, and these are known as your variable costs.
Most people would discover a mixture of fixed and variable costs amongst their weekly spending. It is likely that more fixed costs will appear as you get older, like rent, petrol for the car or loan repayments.
Understanding the difference between fixed and variable costs may help at times when you need to cut costs, because the variable costs are normally more flexible and easy to change if you need to. You're often stuck with the fixed ones, and they can take a fair bit of rearranging to change.
Some examples of your fixed costs might be:
- Monthly mobile phone bill
- Fares to and from work
- Layby for clothes
Some examples of your variable costs might be:
- New cosmetics
- CD
- Trip to Dreamworld
