Money spent for the fulfillment of family goals and requirements is known as expenditure depends upon the capacity of family members to earn money and their real and psychic income.
Family expenditure is of three types:
1. Fixed expenditure
2. Semi-fixed expenditure
ADVERTISEMENTS:
3. Other expenditure
1. Fixed expenditure
This a fixed expenditure and no reduction is possible in it, e.g, house rent, school fees, pay of the servant, etc
2. Semi-fixed expenditure.
ADVERTISEMENTS:
Expenditure on certain items can be increased or decreased such as expenditure on food, clothes, etc. In case of marriage or festival at home, expenditure on clothes increases. Similarly if there are some guests at home, then expenditure on food also increases.
3. Other expenditure.
It is not a compulsory expenditure. Such expenditure is made if some money is left after spending on fixed and semi-fixed expenditure. Such expenditure is made on entertainment or on veins of luxury and comfort.