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What is expenditure?
Money spent by an individual or household.
What is meant by opportunity cost?
The item you give up when choosing another.
What is impulse buying?
Buying without planning or thinking.
Give two consequences of overspending.
Debt and unpaid bills.
True or False: Expenditure should be higher than income.
False
Name the three types of expenditure.
Fixed, Irregular, Discretionary.
Give one example of fixed expenditure.
Rent or insurance.
Give one example of irregular expenditure.
Groceries or Electricity
Give one example of discretionary expenditure.
Cinema or holidays.
Why is it important to record expenditure?
To monitor and control spending.
If rent is €800 per month, annual rent = ?
€9,600.
If income is €2000, and expenditure is €1800, what is net cash?
€200
Januarys closing cash becomes February's....
Opening Cash
How do you calculate net cash
Total income - Total Expenditure
Why should needs be prioritised over wants?
Because they are essential for living.
Explain the term financial cost.
The money paid for an item.
