Even here in India we use the term "beer money" to describe passive income. But that doesn't mean that it is used only for buying beer. I was earning $100 or $200 a year as passive income around 10 years ago, and back then I used to spend that money on a variety of insignificant expenses, such as beer, food, movies, shopping.etc.
200 USD for a passive income is a big enough to support a family of 5 for about half a month in my country assuming that the children in the family is going to school every day. If I had that kind of money right now, I would be investing it into something that will make me more money. I am not that high maintenance person so I can say with confidence that I don't spend a lot of money on something frivolous or luxurious, I don't even drink alcohol so I save more money.