Business enterprise validation flashcards

List the different facets of a budget

income, expenditure, surplus and deficits

Income

Any money you make

Investing

Putting money into something to gain profit or get an advantage

Spending

giving money for goods and services

Saving

income not used for current expenses but reserved for future costs

What is the different between a need and a want

A need is something nessecary to live e.g. food, while a want is something that will improve the quality of life, e.g. mansion

Cost of living

the price of all the living essentials, or the goods and services we need to live/survive ot live a comfortable life. For example, food, water, healthcare and clothing.

Cost of living crisis

essentials are getting too expensive and many people can’t afford certain things needed for survival.

List a few causes of the cost of living crisis

• increase of prices of everyday essentials E.g. rent or bills

• Inflation (the cost of goods and services increases)

• Covid

Fixed expenses

expenses that stay the same e.g. rent, internet bill, loan repayments

Variable expenses

expenses that change from day to day, week to week, e.g. groceries, insurance, petrol

Budget

a personal plan to track where you are spending your money, how much you are saving and how much you are making

Defecit

when you spend more money than you intended

Consumption

when you buy things

Surplus

When you have more money than you expected to have

Deposit

money that is put into your bank account

Renting

a periodic payment made to use someone else’s property

Rental bond

a security deposit paid by a tenant to a landlord to cover potential costs e.g. unpaid rent, property damage

Tenancy agreement/lease agreement

a legally binding contract between a landlord or a property manager and a tenant that outlines the terms and conditions for renting a property including rent amount, rights and responsiabilities and lease duration

Tenant

Someone who rent a property to live or work

Landlord

the owner of a property who rents it out to another person for money.