I like to prefix my variables with what they're going to be: str = String, int = Integer, bool = Boolean, etc.
Using a single letter is quick and easy in Loops: For i = 0 to 4...Loop
Variables are made to be a short but descriptive substitute for what you're using. If the variable is too short, you might not understand what it's for. If it's too long, you'll be typing forever for a variable that represents 5.
Foo & Bar are used for example code to show how the code works. You can use just about any different nonsensical characters to use instead. I usually just use i, x, & y.
My personal opinion of foo bar vs. fu bar is that it's too obvious and no one likes 2-character variables, 3 is much better!