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In relation to household expenditure, explain each of the following: Essential expenditure Discretionary expenditure - Leaving Cert Home Economics - Question 13 - 2021
Question 13
In relation to household expenditure, explain each of the following: Essential expenditure Discretionary expenditure
Worked Solution & Example Answer:In relation to household expenditure, explain each of the following: Essential expenditure Discretionary expenditure - Leaving Cert Home Economics - Question 13 - 2021
Step 1
Essential expenditure
Answer
Essential expenditure refers to spending on basic necessities that are crucial for everyday living. This includes items such as:
- Food and clothing: Basic dietary needs and appropriate clothing for various weather conditions.
- Housing: This encompasses regular costs like rent or mortgage payments, which can be both fixed and irregular.
- Utilities: Payment for services like water, electricity, and gas.
- Healthcare: Medical bills and insurance are essential for maintaining health and managing medical emergencies.
- Transportation: Necessary travel expenses, including car maintenance and repairs.
These expenditures are essential for survival and maintaining a basic standard of living.
Step 2
Discretionary expenditure
Answer
Discretionary expenditure relates to spending on non-essential items or luxuries that enhance quality of life but are not required for survival. Examples include:
- Entertainment: Spending on activities such as movies, concerts, and other events.
- Holidays: Travel expenses for leisure trips.
- Cosmetics: Products used for personal care and beautification.
- Leisure activities: Such as gym memberships and hobbies.
- Streaming subscriptions: Payment for services like Netflix or Spotify, which provide entertainment but are not necessities.
These expenditures can vary significantly based on personal preferences and financial situations.