Household Expenditure Flashcards
(14 cards)
What is fixed expenditure?
Money spent on a regular basis eg. Mortgage/rent
What is irregular expenditure?
Money spent on a regular basis but the price varies eg. Electricity bills
What is impulse buying?
Buying on the spur of the moment without thinking of the consequences
What is false economy?
A situation where we buy something that costs less/seems to be better value but turns out to be more expensive in the long run Eg. Buying a cheap battery that costs 50c but only lasts 3 hours instead of a better brand of battery that costs €1 but lasts 10hrs
How can you deal with overspending?
Try earn additional money buy working overtime, find cheaper alternatives eg. Unbranded food and reducing discretionary expenditure
What is expenditure?
The amount of money we spend during a particular period to satisfy various needs and wants
What is discretionary expenditure?
Money spent on non essential items after the bills are paid eg. Holidays
How can you deal with overspending?
Reducing expenditure in discretionary items, finding cheaper alternatives eg. Unbranded food and earning additional money buy working overtime
What is expenditure?
The amount of money we spend during a particular period to satisfy particular needs and wants
What is current expenditure?
Spending that that is continuous and regular eg. Groceries
What is capital expenditure?
Spending money on new items that will last a long time eg. A new car/furniture
Name some guidelines for effective spending
Preparing a budget, avoid impulse buying, consider opportunity cost, be aware of false economies
What is consumerism?
The human desire to own and obtain objects products and goods in excess of one’s basic needs
What is cash flow?
The day to day money coming in and out of a household
