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Chapter2:Expenditure

Chapter 2: Expenditure

TermDefinition
Expenditure the amount of money spent by an individual or household.
Financial Cost the amount paid for something
Opportunity Cost the item you didn’t buy because you bought something else.
False Economy when you think you are saving money, but you end up spending more money in the future.
Impulse Buying when we buy something that we hadn’t planned on buying on the spur of the moment
Fixed Expenditure payment on a regular basis. The amount is always the same e.g. rent
Irregular Expenditure the amount paid depends on how much of something you get e.g. grocery shopping
Discretionary Expenditure when we pay for things we want but don’t need e.g. a phone
Created by: AnneB97
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