Section 3 Flashcards
Why do we save
People save to achieve financial stability? They may save money to buy a house, new car, plan a holiday or go shopping for accessories and resources.
what is the sharemarket
Share market is the place where all the financial securities are bought or sold by the investors. By buying the share, you’re making an investment within the company. Because the company grows, the value of your share too can increase.
What are the different types of markets
Primary and secondary
what is the primary market
The primary market is where securities are created. It’s in this market that new stocks and bonds are available first to the public. An initial public offering, or IPO, is an example of a primary market
what is the secondary market
where securities are traded by investors
What is income (government systems)
Is the money received for work on a regular basis or through investments. For example, people with a 9 to 5 job at a business earns x amount for y hours.
what is expenditure (government systems)
Expenditure is an outflow of money, or any form of fortune in general, to another person or group as payment for an item, service, or other category of costs. For a tenant, rent is an expense. For students or parents, tuition is an expense.
local government expenditure
- Family and community services
- Aged and disability services
- Recreation and culture
- Waste management
- Street and traffic management
- Local infrastructure services
- Business and economic services
- Roads and bridges
- Administration costs for the local council
state government expenditure
- Health
- Education
- Water and electricity
- Transport, roads, and communications
- Public order and safety – police
- The court system
- Art, culture, and sports
- Environment
- Administration costs to run a state or territory government departments
- Subsidies and grants and to local government
Federal government expenditure
- Social security and welfare, family payments
- Defence
- Health, ageing and community services
- Education
- Immigration
- Trade
- Postage and communications
- Currency
- Transport
- Subsidies and grants to states or territory and local governments
- Administration costs to run federal government departments
what is a budget
A budget is a financial plan for a defined period, often one year? It may also include planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities, and cash flows.
what does a budget do
Since budgeting allows you to create a spending plan for your money, it ensures that you will always have enough money for the things you need and the things that are important to you. Following a budget or spending plan will also keep you out of debt or help you work your way out of debt if you are currently in debt.
Types of income
- Earned Income
- Business Income
- Interest Income
- Dividend Income
- Rental Income
