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income & expenditure
Term | Definition |
---|---|
income | refers to money or other forms of wealth received by a household |
regular income | is income received on a regular basis such as a weekly wage |
irregular income | is income received now and again such as overtime pay |
regular income-employed person | wages, child benefit |
irregular income-employed person | inheritance, overtime |
regular income-unemployed person | unemployment benefit, child benefit |
irregular income-unemployed person | lottery win, casual work |
regular income-retired person | pension, free travel |
irregular income-retired person | win at the bingo, presents |
regular income-student | grant, pocket money |
irregular income-student | presents, casual work |
benefit in kind | is a non-cash form of income, also known as a perk e.g use of company car, mobile phone |
overtime | hours worked in a addition to your regular working week |
child benefit | monthly payment by the government to parents/gaurdians of children under 18 |
grant | a payment made by the government to students while they are studying at collage |
unemployed benefit | weekly payment by the government made to unemployed people |
expenditure | refers to the money we spend during a particular period of time |
fixed expenditure | items where cost does not change according to use. |
irregular expenditure | items where the cost does change according to use. |
impulse buying | is when we buy something on the spur of the moment without asking ourselves if we can really afford it and if we really need it |
opportunity cost | is when we have the choice of buying 2 items and the item we do not choose is the opportunity cost |
example of opportunity cost | I have $1. I have the choice of buying a bar or and apple. I pick the apple so the opportunity cost is the bar |
mortgage | a loan from the bank to enable a person to buy a house |
budget | is a plan of a household future income and future expenditure for a given period |
net cash | equals total income+total expendiure |
un branded | refers to goods not manufactured by a well-known producer |
budget surplus | refers to when your planned income is greater than your planned expenditure |
budget deficit | refers to when your planned expenditure is greater than your planned income |
balanced budget | refers to when your planned income is equal than your planned expenditure |