Chapter 1: Household Income + Chapter 2: Household Expenditure Flashcards
(20 cards)
How many types of income are there and what are they?
2
Regular income
Irregular income
What is income?
The money received by a household
What is regular income?
The income received at regular intervals i.e every week or month e.g wages
What is irregular income?
Income that is received now and again e.g presents
What does BIK stand for?
Benefit in kind
What does BIK mean?
A non cash form of income e.e company car
What’s overtime?
The extra hours someone works after they have completed there normal working time.
What’s child benefit?
Payment made every month to parents of a child under the age of 19 that are still in education
What is grant?
A payment made to some students while they are studying at collage
What’s is a job seekers benefit ?
A weekly payment to the unemployed
What’s a regular income for a retired person
Pension/public transport
What’s expenditure?
The amount of money we spend during a particular period
How many types of expenditure is there and what are they?
3
Fixed expenditure
Irregular expenditure
Discretionary expenditure
What is fixed expenditure
Money spent on a regular basis the amount of which does not depend on how often we use the item e.g mortgage/ rent
What is irregular expenditure
Money spent on a regular basis the amount of which does vary and depends on the amount of the item we use e.g electricity bill
What is discretionary expenditure
Money spent on items we should only buy if we have money left over after we have set aside enough money to pay all are important bills e.g holidays
What is impulse buying
Buying something on the spur of the moment without thinking of the consequences
What is the opportunity cost
The item we have to do without or the opportunity to forget when we chose to buy something else. e.g we have €20 There Is a blue dress costing €20 and a red dress costing €20 we buy the red dress the blue dress is the opportunity cost.
What is financial cost
The price one pays for a good or service
What is a mortgage
A loan from a bank or building society to help someone buy a house
