Incone And Expenditure:💰

Question 1

What is income

Answer 1

Money or something of value received by a person or household

Question 2

Two types of income:

Answer 2

Regular
Irregular

Question 3

What is regular income

Answer 3

Regular - Money received every week/ month e.g: Wages, Salaries

Question 4

What is irregular income

Answer 4

Money received from time to time e.g: Overtime, bonus

Question 5

What is benefit in kind

Answer 5

A Benefit in Kind is a non-cash benefit that an employee receives from their employer on top of their salary.e.g company car,health insurance

Question 6

What is expenditure

Answer 6

The amount of money that we spend over a particular period of time

Question 7

Name 3 types of expenditure

Answer 7

Fixed
Irregular
Discretionary

Question 8

What is fixed expenditure

Answer 8

a set amount of money that must be paid on a regular basis e.g:rent

Question 9

Irregular expenditure definition

Answer 9

Irregular expenditure refers to spending that happens from time to time and the cost is not always the same it depends on usage e.g light+heat

Question 10

What is discretionary expenditure

Answer 10

Discretionary expenditure is non-essential spending on items we want but do not need. It is usually done after essential expenses (like food, housing, bills) are paid. E.g holidays

Question 11

What is current expenditure

Answer 11

Spending on day-to-day items that get used up within one year and only
provide benefit for a short period of time. E.g: food, light & heat, petrol

Question 12

What is capital expenditure

Answer 12

Spending on items that will provide benefit for a long time E.g: Car

Question 13

What is opportunity cost

Answer 13

The item/service you forgo in order to any another item/service.

Question 14

What is finacial cost

Answer 14

The monetary value of an item

Question 15

Give one example of discretionary expenditure.

Answer 15

Concert tickets

Question 16

Name two sources of household income

Answer 16

Wages/salaries
Child benefit

Question 17

Distinguish between regular and irregular income

Answer 17

Regular Income is steady and predictable.(wages)
Irregular Income is occasional and can change each time (lottery winnings)

Question 18

Advise on how to deal with a deficit.(3)

Answer 18

Track all spending to identify unnecessary or non-essential costs
Cut back on luxuries like eating out, subscriptions, or expensive hobbies
Take on more hours or get a second job