needs and wants Flashcards
What does personal resources mean
anything that we can use to meet our needs or achieve our goals
Name 6 resources
personal resources ,human resources , physical resources, natural resources and financial resources
what is a need
something you cant live without eg. food water cloths
what is a want
something that you desire or something you can live without
what is an opportunity cost
when you have 2 options and you pick one of them, the opportunity cost is the option you didn’t choose
what is income
money or something of value that you receive
what is expenditure
is an mount of money spent during a particular period of time
explain what fixed expenditure is and give an example
money spent at the same time each week, month or year eg. rent , loan and mortgage
explain what fixed expenditure is and give an example
money spent at the same time each week, month or year eg. rent , loan and mortgage
explain what irregular expenditure and give example
the amount paid out changes because the more you use the more you spend eg. petrol, phone and groceries
explain what discretionary expenditure and give an example
money you spend on items you want or luxury items eg. designer cloths ,sky tv and holidays
what is savings and give examples
a part of income which you don’t spend until we need or want something eg. deposit , interest, future wants, future needs and unforeseen events
What does interest mean
Putting your money into a product or scheme that should make a profit
What is compound interest
Calculated percentage of the total amount in the account at the end of each year
What is taxation
A required payment set by the government and paid by employees, consumers, household and buisnesses
