Household Budgeting
Budget:
A budget is an estimate of what you might earn and how you will spend it.
Why Are Household Budgets So Important???
They allow you to see where you overspend.
You can predict how much money you will have for the next year.
It helps you save money to pay off various debts or unexpected
payments.
It helps you avoid buying unnecessary items i.e. impulse buying.
You can predict how much money you will have for the next year.
It helps you save money to pay off various debts or unexpected
payments.
It helps you avoid buying unnecessary items i.e. impulse buying.
Income
This is money that you earn or receive regularly or irregularly e.g. wages, child benefit, pension, benefit in kind, etc.
Gross Pay Deductions and Net Pay
Gross pay is the total amount of money a person can earn e.g. if you work 30 hours a week being paid €20 an hour you earn €600.
A deduction is money that is taken away from your gross pay, and this is divided into two groups - statutory and non-statutory (voluntary).
Net pay is the total amount of money after deductions have been made from your gross pay.
A deduction is money that is taken away from your gross pay, and this is divided into two groups - statutory and non-statutory (voluntary).
Net pay is the total amount of money after deductions have been made from your gross pay.
How to find out how much income you have
You earn income such as wages, pocket money, pension etc.
The account is divided into months to calculate how much money you are earning in a year.
An example of a household budget:
The account is divided into months to calculate how much money you are earning in a year.
An example of a household budget:
The money you earn during the year is divided by twelve as it's the total amount of months in the year for example you pay rent every month and it totals €9,600 per year. To find out how much you spent a month you divide €9,600 by twelve which would mean €800 a month for rent.
Expenditure
Expenditure is the amount of money that was spent over the year. These expenses would include electricity bills, groceries, car running costs etc.
Expenditure is divided into three types: Fixed Expenditure (which is money you spend on a regular basis, it is a fixed amount), Irregular Expenditure (which is money spent at different periods each month with varying amounts of money) and Discretionary Expenditure (which is spending money on items you would like but don't need).
Expenditure is divided into three types: Fixed Expenditure (which is money you spend on a regular basis, it is a fixed amount), Irregular Expenditure (which is money spent at different periods each month with varying amounts of money) and Discretionary Expenditure (which is spending money on items you would like but don't need).
You find out how much you spend the same way you find out how much income you have. To find how much you spend a month you divide the total amount by twelve. Doing this can help you find out where you're overspending and may help you in the following year.
Test yourself! :)
Q.1 What is income?
A.1. money you earn
a) money you earn
b) money you spend
c) a breed of dog
Q.2 What is an example of regular income?
A.2. Wages
a) winning the lottery
b) wages
c) a car
`Q.3 What is an example of irregular income?
A.3 bonus payment
a) Pension
b) bonus payment
c) pocket money
Q.4. What does the word expenditure mean?
A.4. spending money on goods/ services
a) earning money
b) giving to charity
c) spending money on goods/services
Q.5. How many different types of expenditure are
there?
a) seventy
b) three
c) two
Q.6. which of these is a type of expenditure?
A.6. Fixed Expenditure
a) fixed expenditure
b) Impulse expenditure
c) related expenditure
Q.7. How can you find out your income for each month?
A.7 Divide the total by twelve
a) Divide the total by four
b) divide the total by twelve
c) divide the total by sixteen
Q.8 Which of these is a benefit of household budgets?
A.8. It can help you avoid overspending
a) It makes you overspend
b) it means you don't need a bank account
c) It can help you avoid overspending
Q.9. What is Net Pay?
A.9. the money that is left after deductions have been made
a) the deductions made on your money
b) Paying for a net
c) the money that is left after deductions have been made
Q.10. What is buying unecessary items known as?
A.10. Impulse buying
a) uneccesary buying
b) impulse buying
c) I-don't-actually-need-this-but-yolo
A.1. money you earn
a) money you earn
b) money you spend
c) a breed of dog
Q.2 What is an example of regular income?
A.2. Wages
a) winning the lottery
b) wages
c) a car
`Q.3 What is an example of irregular income?
A.3 bonus payment
a) Pension
b) bonus payment
c) pocket money
Q.4. What does the word expenditure mean?
A.4. spending money on goods/ services
a) earning money
b) giving to charity
c) spending money on goods/services
Q.5. How many different types of expenditure are
there?
a) seventy
b) three
c) two
Q.6. which of these is a type of expenditure?
A.6. Fixed Expenditure
a) fixed expenditure
b) Impulse expenditure
c) related expenditure
Q.7. How can you find out your income for each month?
A.7 Divide the total by twelve
a) Divide the total by four
b) divide the total by twelve
c) divide the total by sixteen
Q.8 Which of these is a benefit of household budgets?
A.8. It can help you avoid overspending
a) It makes you overspend
b) it means you don't need a bank account
c) It can help you avoid overspending
Q.9. What is Net Pay?
A.9. the money that is left after deductions have been made
a) the deductions made on your money
b) Paying for a net
c) the money that is left after deductions have been made
Q.10. What is buying unecessary items known as?
A.10. Impulse buying
a) uneccesary buying
b) impulse buying
c) I-don't-actually-need-this-but-yolo