Chapter 2 - Household Expenditure Flashcards
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 expenditure?
The amount of money we spend during a particular period of time.
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 important bills e.g. holidays.
What is irregular expenditure?
Money spend 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 impulse buying?
Buying something on the spur of the moment without thinking of the consequences.
What is opportunity cost?
The item we had to do without or the opportunity we had to forego when we choose to buy something e.g. We have €20, there is a red dress and a blue dress both costing €20. We buy the red dress. The blue dress is the opportunity cost.
What is financial cost?
The cost one pays for a good or service.
What is a mortgage?
A loan form the bank or building society to help someone buy a home.
