Personal Finance Revision | Baamboozle - Baamboozle

What does (CR) stand for

Credit

What does DR stand for

Debit

What is closing cash?

Closing cash is the amount of money a household (or business) has left at the end of a period — for example, at the end of the week or month.

Name two services offered by financial institutions.

Saving accounts, loans, debit/credit cards, direct debits, insurance, online banking.

Give one example of an opening balance in a cash book.

Money already in the household bank account at the start of the month.

If total income is €2,000 and total expenditure is €2,150, what is the budget outcome?

A deficit of €150

What should a household do if it has a budget deficit?

Expenditure is greater than income.

What does it mean if a household has a budget surplus?

Income is greater than expenditure.

What is the purpose of a household budget?

To plan income and expenditure so that spending doesn’t exceed income.

Name two ways households can reduce their expenditure.

Shop around for better deals, plan meals, reduce energy use, avoid impulse buying.

What is opportunity cost?

The benefit you give up when choosing one option over another.

What is the difference between fixed, irregular, and discretionary expenditure?

Fixed – stays the same each time (e.g., rent), Irregular – changes depending on use (e.g., electricity), Discretionary – optional spending (e.g., cinema).

If someone earns €600 per week gross and pays €120 in deductions, what is their net income?

€480

Give two examples of benefit-in-kind.

company car/ free meals /gym /health benefits.

What is the difference between regular and irregular income

Regular income is received on a set schedule (e.g., weekly wages), while irregular income is received occasionally or unpredictably (e.g., gifts or bonuses).