One of the first practical distinctions people learn when building a budget is the difference between fixed and variable expenses. Fixed expenses are recurring and predictable: rent, certain insurance premiums, or a loan payment are classic examples. Variable expenses change month-to-month: groceries, utilities (to some degree), entertainment, and streaming subscriptions can fluctuate based on behavior or seasonality. Correctly classifying expenses matters because it determines how rigid your budget should be and where you have flexibility to cut in tight months. Another useful concept is the role of automation — automating fixed and high-priority savings reduces the need for monthly decisions and protects long-term goals from short-term impulses. When building a workable budget, many people start by listing monthly fixed costs, then identify variable categories where small lifestyle adjustments can generate savings without disrupting essentials. This question asks you to apply that classification: pick the item that typically belongs in the variable category rather than the fixed one.