Types of Household Expenditure

Question 1

What are the two different types of household expenditure?

Answer 1

Essential expenditure

Discretionary Expenditure

Question 2

What is essential expenditure?

Answer 2

Money spent on items necessary to manage family life

Question 3

What are the different types of essential expenditure?

Answer 3

Fixed

Irregular

Question 4

What is fixed expenditure?

Answer 4

The same amount is paid at the same time e.g. weekly or monthly

Question 5

What are the two main types of fixed essential expenditure in a household?

Answer 5

Mortgage/rent

Insurance

Question 6

What is irregular essential expenditure?

Answer 6

Different amounts are paid at different times

Question 7

What are the three main examples of irregular essential expenditure in a household?

Answer 7

Clothing
Educational needs
Food

Question 8

What is discretionary expenditure?

Answer 8

Money spent on non-essential items

Question 9

What are the three main examples of discretionary expenditure in a household?

Answer 9

Holidays
Entertainment
Leisure