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Chapter 2- Expenditure

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