Expenditure

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. • Eg. 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. Mortgage Rent Loan repayments Insurance TV licence Eg.

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 ExpenditureRevenue Expenditure • Is spending money on day to day items. Eg. Food, drink, petrol, phone credit,

13. Capital Expenditure • Is spending on durable items. • 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

16. ESB Meter Reading