What is an opportunity cost?
making a decision/choice based on limited/scarce resources.
Buying on the spur of the moment.
What is Impulse buying?
Buying on the spur of the moment
Buying something because it is cheap even when you don’t need it.
What is false economy?
buying on the spur of the moment
What is fixed expenditure?
Is money that is spent at the same time each week, month, year.
Money spent at different times which varies.
what is Irregular expenditure?
The amount paid out varies and is paid at different times.
money you spend on things you can live without
What is prioritising? (budgeting)
Is money you spend on things you can live without (luxuries)
If you have a limited income you must plan to spend.
What do you do if you have a deficit budget?
dont pay bills
reduce discretionary expenditure
What is current expenditure? (Revenue expenditure)
spending on durable items.
spending on day to day items
What is capital expenditure?
Is spending on durable items.
