Understanding Expenditure

What is impulse buying?

• Planning purchases in advance

• Comparing prices before buying

• Buying on the spur of the moment

• Saving money for future use

What is an example of fixed expenditure?

• Mortgage

• Petrol

• Holiday

• Cinema

What does 'false economy' mean?

• Buying an item because it seems cheap but in the long run it is money wasted

• Saving money for future use

• Spending money wisely

• Investing in stocks

What is discretionary expenditure?

• Money saved for emergencies

• Money spent on essential items

• Money you spend on things you can live without

• Money invested in a business

Which of the following is an example of irregular expenditure?

• Salary

• Mortgage

• ESB

• Rent

What is capital expenditure?

• Spending on food

• Spending on things that last a long time

• Spending on daily needs

• Spending on entertainment

What is benefit in kind?

• Salary increase

• Non money income

• Cash bonus

• Gift card

What is opportunity cost?

• The price of a service

• The amount saved

• The cost of an item

• The item or thing you did not pick

What is current expenditure?

• Paying off debts

• Saving for retirement

• Investing in long-term assets

• Spending money on a day to day basis

What does surplus mean?

• Income is greater than expenditure

• Expenditure is greater than income

• Income equals expenditure

• No income or expenditure