Income And Expenditure Flashcards
What are the two types of income?
The two types of income are regular income and irregular income
What is income ?
Income is any money coming IN.
What is regular income ?
Regular income is income received on a regular basis eg. Every month.
What is an example of regular income ?
An example of regular income would be salary or wages .
What is irregular income?
Irregular income is income received on a irregular basis.
What is an example of irregular income ?
An example of irregular income would be a lotto win or a Christmas bonus.
What is expenditure ?
Expenditure is any money going OUT
What are the three types of expenditure ?
The three types of expenditure are fixed expenditure, irregular expenditure and discretionary expenditure.
What is fixed expenditure ?
Fixed expenditure is when the amount does not change
What is an example of fixed expenditure ?
An example of fixed expenditure would be house rent or mortgage.
What is irregular expenditure ?
Irregular expenditure is when the amount does change
What is an example of irregular expenditure ?
An example of irregular expenditure is groceries and electricity bills.
What is discretionary expenditure ?
Discretionary expenditure is spending on items you do not need/ spending on luxury items
What is an example of discretionary expenditure ?
An example of discretionary expenditure would be a holiday or birthday presents
What is a budget ?
A budget is a plan/estimate of your expected income and expenditure over a period of time
