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Business
Household expenditure
Question | Answer |
---|---|
Expenditure | amount of money spend during a certain period eg month |
Things to remember rules when deciding what to spend | Never plan to spend kore then earned Save money for rainy day List important bills first and food leave luxeries last Keep note how often certain bills have to be paid eg groceries each week |
Three types of expenditure | Fixed Irregular descretionary |
Fixed | Paid on regular basis but amount of money stays the same morgege |
Irregular expenditure | Change evry time depending on what used may be payed regulary |
Descretionary | Only buy if money left over |
Impulse buying | Buying on spur of th moment without thinking of consquences |
Oppurtunity cost | The oppurtunity cost of buyimg so,ethimg is the item we had to do without |
Mortgage | Loan from bank or building society to help so,eome buy a house |