Term Definition
Wages Are paid weekly and are often linked to amount of hours worked
Salaries Are paid monthly and usually regardless of amount of hours worked
Child benefit Is a monthly social welfare by the government to all parents or guardians to children up to the age of eighteen while they are still in school
Interest on savings Amount of money earned as a percentage of amount saved
Pocket money Is sometimes paid to children by their parents or guardians
Pensions Are paid to retired people
State pension Paid to the government to all citizens over a certain age
Private pension Paid by employers to former employees when they reach a retirement age
Personal pension Paid by life assurance companies or investment firms
Regular income Predictable amount of money paid every week/month
Irregular income Money paid that is of unpredictable size and frequency
Commission Extra income earned by sales people depending on how many items they sell
Overtime payment May be received in some jobs for working extra hours
Bonus payments A financial tears for achievement of a work target
Profits For people who run their own business , the amount of income they earn depends on whether their business does well
Benefits in kind (B.I.K) Non cash form of paymentAlso known as perks and fringe benefits
Current expenditure Spending money of day to day items that get used up quickly and only provide a benefit for a short period of time
Capital expenditure Spending money on items that will provide benefits for a long time before they wear out
Discretionary expenditure Spending money on non-essential items
Consumer durables Goods that will give benefit for a long period of time
Opportunity cost The item you must do without in order to buy another item
NEW JC: chapter 2 Income and expenditure

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