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Income
terms associated with income & expenditure
| Term | Definition |
|---|---|
| Income | Money received by business and households |
| Regular Income | Income received every week/month e.g. salary, pocket money |
| Irregular Income | Income received every now and again e.g. overtime |
| Benefit-in-kind | Non cash forms of income e.g. company mobile, subsidized canteen, vouchers |
| Overtime | Extra hours worked after a person has completed their normal working hours |
| Child benefit | Payment made every month to parents/guardians of children who are in fulltime education by Department of Social Protection |
| Jobseeker's benefit | Weekly payment to unemployed people paid by Department of Social Protection |
| Statutory Deductions | Deductions from pay which are required by law e.g. PAYE, PRSI, USC |
| PRSI | Pay Related Social Insurance, used to pay social welfare benefits, maternity leave, state pension etc |
| PAYE | Pay As You Earn (income tax) used to pay salaries of public & civil servants & provide government services |
| USC | Universal Social Charge, introduced to replace other income levies |
| Voluntary Deductions | Employee decides to have these deducted from their wage/salary e.g. pension, union subscriptions |
| Time and a half | Overtime rate of one and a half times the hourly rate |
| Double time | Twice the hourly rate when being paid overtime |
| Net Pay | Take home pay, income after statutory and voluntary deductions have been subtracted from a person's salary/wages |
| Payslip | Document showing all pay earned, all deductions and shows Net Pay |
| Gross Pay | Total income earned. Made up of basic pay plus overtime or bonuses or commission |
| Expenditure | Amount of money spent during particular period. Can be divided into fixed, irregular and discretionary expenditure. |
| Fixed Expenditure | Payments that stay the same and are made on a regular basis i.e. every month e.g. mortgage |
| Irregular Expenditure | Payments which change depending on how much we use e.g. Electricity bill |
| Discretionary Expenditure | Items we buy after we have paid for the essential things. |
| Impulse buying | Buying something on the spur of the moment without having budgeted to buy it |
| Opportunity Cost | Opportunity cost of buying an item is the item we had to do without or opportunity we had to forego |
| Financial Cost | Monetary cost of the item |
| False economy | Buying a cheaper version of a product thinking you are saving money e.g. buying cheap shoes that only last 2 months instead of buying a good pair of shoes |
| Budget | future plan of income and expenditure |
| Deficit | When total income is less than total expenditure i.e. you are spending more than you are earning |
| Surplus | when total income is greater than total expenditure |
| Grant | non-repayable source of income for businesses and households. Business obtain grants from government agencies or the EU. |
| Mortgage | Long term source of finance which is repaid over 5 years. Used by households to buy houses. |
Created by:
MsBradyJCBSTU
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