Expenses refer to the money you need to pay for goods and services that you buy or use.
There are 2 types of expenses:
- Essential expenses take care of your needs, like mortgage or rent, utilities, groceries, etc.
- Discretionary expenses cover your wants, like eating out, going to the movies, and vacations.
For more information, please visit: What are Income and Expenses? Extremely Simple Definitions for Kids
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