Economic management science

• Electronic banking


  A method of payment involves people depositing money into their accounts, withdraw money from their accounts and pay accounts
• Basic need

  Things we cannot survive without e.g. food
• Asset


  An item that has monetary value e.g vehicle
• Recycling


  This involves people to collect materials such as wastepaper, plastics, glass and metal cans
• Consumers

  Are people who purchase and use goods or services to satisfy their needs
• Savings


  The act of putting money aside for future use
• Personal expenses

  Things people have to pay for in order to survive
• Wages

  When people get paid daily or weekly
• Reuse


  To use something over and over again
• Trading


  To exchange goods for money
• Wants

  Things that people can live without
• Hairdresser

  Provides a service
• Essential needs

  Needs that must be satisfied, people cannot survive without them
• Money


  A medium of exchange
• Disadvantages of bartering


  • It was not always practical
  • No late payment can be allowed
  • Storing goods is difficult
• Advantages of internet banking

  • Available 24 hours a day
  • Saves on traveling and time
• Disadvantages of internet banking

  • Difficult to return faulty goods
  • Credit card fraud
• Budget


  A plan of how much money you have and how much you spend it
• Domestic help


  Someone you pay to clean your house
• Why one should budget


  • To ensure one spends less than one earns
  • To save for emergencies
  • To ensure one pays for basic needs first
• Assets: Things that have monetary value eg a Vehicle
• Liabilities: Debts owed by a business .eg creditors
• Capital:All the money,goods and property the business can use to make an income through the business activities,eg Selling goods and services
• Expenses: is payments for services and consumable goods in order to keep the business running
• Income:all the money the business earns.eg sales