Expenditure

Expenditure

The amount of money we spend on goods and services.

Fixed expenditure

Spending on goods or services on a regular basis where the amount of the bill stays the same no matter how much is used. E.g. Mortgage, car tax

Irregular expenditure

Spending on goods and services where the amount changes with usage. E.g. Wi-fi, petrol

Discretionary expenditure

Spending on items we would like to buy but don’t need to live. E.g. Holiday, sweets

Capital expenditure

Spending on items that will last a long time or once off spending. E.g. Car, house

Current expenditure

Spending on items that benefit for a short time. Day to day spending. E.g. phone credit

Impulse buying

Buying something in the spur of the moment. Unplanned. E.g. chocolate

Financial Cost

The amount of money that is needed in order to buy, do, or make something.

Opportunity cost

The item you must do without in order to buy another item.

False economy

When we buy something that costs less or seems to be better value, but is more expensive in the long run.