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Business

Household expenditure

QuestionAnswer
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
Created by: Chloeg99