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JC Business 1.2

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Term
Definition
Income   The money you receive, on a regular basis from work or through investments, and on an irregular basis from other sources.  
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Expenditure   The money that we spend out of our take-home pay.  
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Want   Something that you desire, but that can live without. It is not essential for your survival.  
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Need   A basic requirement that you must have in order to survive.  
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Regular Income   Income that you are sure you will receive.  
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Irregular Income   Income that you are not sure you will receive.  
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Benefit-in-Kind   Is non-monetary (non-cash) income, e.g. a company car.  
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Wages   Is regular income for hours worked or number of goods produced.  
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Salary   Is regular income received for doing a job no matter how many hours you spend at it.  
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Child Benefit   Regular income received once a month from the government if you have children under the age of 16.  
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Pension   Regular income received from the government or a pension fund when you retire.  
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Social Welfare   Regular income receive weekly from the government if you are unable to work.  
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Family Income Support   Regular income received by families on a low income from the government.  
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Bonus   Additional income given for reaching certain targets.  
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Commission   Additional money calculated as a percentage of sales.  
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Inheritance   Additional income received from a relative or friend when they die.  
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Tax Refund   Money back from the government when too much tax has been paid.  
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Interest on Savings   Additional income received when you invest money in the bank.  
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Dividends on Shares   Additional income received when you own part of a company and you receive a share of the profits.  
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Fixed Expenditure   Bills that have to be paid regularly, each week or each month.  
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Irregular Expenditure   Bills paid each week or month, but the price may change from one bill to the next.  
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Discretionary Expenditure   After all the bills have been paid, the money that we spend on nice things or ‘non essentials’.  
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Opportunity Cost   The item that is not selected when we make a choice based on our limited income.  
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Impulse Buying   Buying something on the spur of the moment, without thinking or planning.  
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False Economy   Buying something because it is cheap even when you don’t need it.  
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Created by: Dinneenj
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