Expenses refer to the money spent on goods or services. They are typically the costs incurred by individuals, households, or organizations in order to maintain their day-to-day operations. Examples of expenses may include rent or mortgage payments, utilities, transportation, food, clothing, entertainment, and other miscellaneous costs.

Expenses can be categorized as either fixed or variable. Fixed expenses are recurring costs that remain the same each month, such as rent or a car payment, while variable expenses can vary from month to month, such as utility bills or groceries. Understanding and tracking expenses is an important part of budgeting and financial planning.