1. Expenditure

2. Opportunity Cost Is making a decision/choice based on limited/scarce resources. The item not selected is the opportunity cost- opportunity foregone.

3. Example I have €2.00. I can buy ice-cream or Pringles. I choose ice-cream. Opportunity cost = Pringles. Financial cost = €2.00

4. Impulse Buying Buying on the spur of the moment. Without thinking or planning. We’re so cute! Buy us

5. False Economy Buying something because it is cheap even when you don’t need it. Eg 2 for 1 BOGOF…..

6. Fixed Expenditure Is money that is spent at the same time each week, month, year. The amount is usually the same.

7. Eg. Mortgage Rent Loan repayments Insurance TV licence

8. Irregular Expenditure The amount paid out varies. It is paid at different times. Eg. ESB, heating, petrol, phone Groceries  School uniform & supplies  Shoes & clothes………

9. Discretionary Expenditure Is money you spend on things you can live without (luxuries) The amount varies. Eg. Sky tv, playstation, Wii, brand name clothes, holidays, Presents, entertainment, alcohol, cigs..

10. Prioritising If you have a limited income you must plan to spend. You must make sure you have enough for: Fixed expenditure first, Then irregular expenditure And finally only if you have money left can you afford discretionary expenditure.

11. If you have a deficit You must reduce Discretionary expenditure first.

12. Current Expenditure Revenue Expenditure Is spending money on day to day items. Eg. Food, drink, petrol, phone credit,

13. Capital Expenditure Items that last a long time. Eg. Car, TV, house, furniture, Washing machine……

14. Calculating and ESB Bill Subtract present from previous meter reading. Multiply by the rate per unit. Add the standing charge (rental of equipment)

15. ESB Meter Reading Present6734 Previous5890 No of units used 844 Rate per unit.20 Sub total168.80 Standing charge 10.00 Total charge178.00

16. ESB Meter Reading Present6534 Previous-4850 No of units used Rate per unitX.30 Sub total Add Standing charge +15.00 Total charge

17. What is a budget ? It is a plan of future income & expenditure.

18. Why are budgets needed ? To ensure the best use of money. To live within your means (not overspend) To highlight areas of overspending. To see if you will have savings.

19. What can be done with a surplus budget? Pay off loans (debt) Increase spending Save

20. How can a deficit be reduced Increase income, work overtime.. Reduce spending especially discretionary. Spread out payments over the year. Get a bank overdraft.

21. What is a bank overdraft? It is a short term loan. The bank gives you permission to spend more than you have in you account. You must pay it back within one year. Interest is charged.

22. What is saving? It is putting aside income & spending at a future date.