Home›Lesson Plans›Social Studies›Financial Literacy · Grade 7

Fixed vs Variable Expenses

Seventh graders learn that a budget has two kinds of expenses — fixed costs that stay the same each month (rent, a phone bill) and variable costs that change (groceries, gas). Knowing the difference makes budgeting far easier.

Grade 7Fixed vs Variable Expenses50 minutes1 class periodEconomics · C3Explicit teaching4 StandardsC3 / NSPFE
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Lesson at a Glance

Everything you need before the bell rings

Learning Objectives

Students will be able to…

  • ✓Explain fixed & variable.
  • ✓Tell them apart.
  • ✓Sort the expenses.
  • ✓Budget smarter.
Essential Question

When you budget, some costs are the same every month and some change. What’s the difference — and why does it matter?

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Lesson Phases
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Vocabulary Terms
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Standards Aligned
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Interactive Task
Sort It · Interactive

Fixed or Variable?

Project this and sort each expense into Fixed (same each month) or Variable (changes).

💰 Sort each — a fixed or variable expense?Try it
📌 Fixed (stays the same)
📊 Variable (changes)
Tap an expense, then tap a box.
The Lesson · Inquiry Flow (Hook · Explore · Practice · Apply · Reflect)

50 minutes, five moves

Tap any phase to open the teacher moves and student actions.

1

Hook — Same or Changing?

5 min

Some monthly costs stay the same and some change — what’s the difference?

👩‍🏫 Teacher Moves

  • Show rent and groceries.
  • Ask which stays the same.
  • Set the goal.

🎒 Student Actions

  • Look.
  • Think.
  • Get ready.
2

Explore — Fixed vs Variable

12 min

Students explore.

👩‍🏫 Teacher Moves

  • Send students to Fixed or Variable?
  • Sort each one.
  • Explain each.

🎒 Student Actions

  • Sort.
  • Say.
  • Explain.
3

Practice — Practice

13 min

Students practice.

👩‍🏫 Teacher Moves

  • Name a fixed cost.
  • Name a variable cost.
  • Explain the difference.

🎒 Student Actions

  • Name it.
  • Name it.
  • Explain.
4

Apply — Apply

11 min

Students apply.

👩‍🏫 Teacher Moves

  • Sort a family’s expenses.
  • Which are easier to cut?
  • Share your thinking.

🎒 Student Actions

  • Sort.
  • Decide.
  • Share.
5

Reflect — Reflect

5 min

Students close.

👩‍🏫 Teacher Moves

  • Say what a fixed cost is.
  • Say what a variable cost is.
  • Complete the exit ticket.

🎒 Student Actions

  • Say it.
  • Say it.
  • Complete the exit ticket.
Standards Alignment

Built to the standards you report on

Aligned to the C3 Framework (Economics) & the National Standards for Personal Financial Education.

NSPFE
Spending & Saving

Categorize expenses.

C3
D2.Eco.1.6-8

Explain budgeting choices.

C3
D4.6.6-8

Draw conclusions about a budget.

NSPFE
Financial Decision Making

Manage a budget.

Differentiation

One lesson, every learner

Multilingual Learners

ELL / EMERGING READERS
  • Expense cards.
  • Sentence frame: “___ is a ___ expense.”
  • Use a two-column chart.

Support & Access

IEP / 504
  • Start with rent (fixed) and groceries (variable).
  • Sort one at a time.
  • Use examples.

Stretch & Extend

GIFTED / EARLY FINISHERS
  • Build a monthly budget.
  • Find costs to cut.
  • Track a week of spending.
Materials

What to gather

  • 📽️Screen / board
  • 💰Expense cards
  • 💻Fixed or Variable?
  • 📊A budget worksheet
  • ✏️Notebooks
  • 🎫Exit-ticket slips
Vocabulary

Key terms — hover for a quick definition

expensemoney going outfixed expensethe same each timevariable expensechanges each timebudgeta money planrenta fixed housing costbilla regular paymentsubscriptiona recurring service costspendingusing money
Evaluate

Exit Ticket

Preview the three formative checks. Tap “Sample answer” to see what mastery looks like — hide them before you print for students.

QUESTION 1
What is a fixed expense?
A cost that stays the same each month, like rent.
QUESTION 2
What is a variable expense?
A cost that changes, like groceries or gas.
QUESTION 3
Which type is usually easier to cut when saving money?
Variable expenses.

Reflect: fixed vs variable.

Have students name two fixed and two variable expenses a family might have. A printable expenses sheet is in the Social Studies library.

Study · Flashcards

Study the key terms

Tap a card to flip it, then rate whether you knew it. Built from this lesson’s vocabulary.

🃏 Fixed vs Variable ExpensesFlip
Card 1
Term
Tap to flip →
Meaning
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Nice work!

Practice · Quiz

Check your understanding

A quick self-check with instant feedback, drawn from this lesson’s key terms.

📝 Fixed vs Variable ExpensesQuiz
Score: 0
1 / 6
Question 1
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Nice work!

Practice · Worksheet

Printable worksheet

A print-and-go review sheet with a built-in answer key. Tap “Show answer key” to reveal answers, or print the clean version for students.

🖨️ Fixed vs Variable ExpensesPrint
Name: ________________________
Date: ____________

Part A · Write the word that matches each meaning

Word bank: bill, budget, expense, fixed expense, rent, spending, subscription, variable expense
  1. a regular payment
  2. money going out
  3. a fixed housing cost
  4. a money plan
  5. using money
  6. a recurring service cost
  7. changes each time
  8. the same each time

Part B · Show what you learned

  1. What is a fixed expense?
  2. What is a variable expense?
  3. Which type is usually easier to cut when saving money?
Answer key — Part A: 1) bill · 2) expense · 3) rent · 4) budget · 5) spending · 6) subscription · 7) variable expense · 8) fixed expense
Part B: 1) A cost that stays the same each month, like rent. 2) A cost that changes, like groceries or gas. 3) Variable expenses.