Expenditure

Opportunity Cost

Is making a decision/choice based on limited/scarce resources.

The item not selected is the opportunity cost- opportunity foregone.

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

Impulse Buying

Buying on the spur of the moment. Without thinking or planning. Eg.

We’re so cute!

Buy us

False Economy

Buying something because it is cheap even when you don’t need it.

Eg 2 for 1 BOGOF…..

Fixed Expenditure

Is money that is spent at the same time each week, month, year.

The amount is usually the same.

Eg. Mortgage Rent Loan repayments

Insurance TV licence

Irregular Expenditure

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

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..

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.

If you have a deficit

You must reduce Discretionary expenditure first.

Current ExpenditureRevenue Expenditure

Is spending money on day to day items.

Eg.Food, drink, petrol, phone credit,

Capital Expenditure

Is spending on durable items. Items that last a long time. Eg. Car, TV, house, furniture, Washing machine……

Calculating and ESB Bill

Subtract present from previous meter reading.

Multiply by the rate per unit. Add the standing charge (rental of equipment)

ESB Meter ReadingPresent 6734

Previous 5890

No of units used 844

Rate per unit .20

Sub total 168.80

Standing charge 10.00

Total charge 178.00

ESB Meter Reading

Present 6534Previous -4850No of units usedRate per unit X.30Sub totalAdd Standing charge

+15.00

Total charge