CHAPTER SUMMARY • Expenditure is the amount of money spent by an individual or household.
• Often we have to make a choice between items. The item that we do not buy is called the opportunity cost.
• The financial cost of an item is the amount of money that is paid for the item. • Impulse buying is unplanned spending. • Fixed expenditure is payment on a regular basis. The amount does not vary with usage. • Irregular expenditure is payment where the amount and/or when it is paid depends on usage. • Discretionary expenditure is payment for things we want but do not need.
• Recording expenditure in an organised way can help an individual or household to estimate future spending.
Taking stock A
Go to page 23 of your Activities and Accounts Book to check what you have learned in chapter 3.
stions
1. Copy and fill in the blanks. a. ____________ is the amount of money spent by an individual or household.
b. When we make a choice between two items, the item that we do not buy is called the ____________ cost.
c. The ____________ cost of an item is the amount of money that is paid for the item. d. ____________ buying is unplanned spending. e. Payments made on a regular basis are ____________ expenditure.
f. ____________ expenditure is payment where the amount and/or when it is paid depends on usage.
g. Payment for things we want but do not need is ____________ expenditure.
