A filing system is a method of storing documents so that they can be easily found in the future. The documents should be stored in a file, which can be a folder, drawer, cabinet, or computer. The documents can be sorted in the file alphabetically, numerically, in date order or by address.
3. Prepare Regular Budgets
Budgets should be prepared, regularly reviewed and revised when your circumstances change. Budgets can be prepared manually in cashbooks or in a computer spreadsheet. Using a spreadsheet is very useful because: • Information can be easily updated. • Calculations can be done quickly and accurately by the software. • Graphs can be produced which help to visually analyse financial performance.
Chapter Review
Key Terms Checklist Using a pencil, place a
¸in each box to indicate how
well you know and understand each Key Term. q I know and understand this Key Term.
q I am still a bit uncertain about what this Key Term means. q I don’t understand this Key Term yet.
When you revise each chapter, tick the boxes again to indicate how much you have learned.
1. 2. 3. 4. 5. 6.
A household budget is a plan that matches expected spending with expected income over a period of time.
A budget deficit happens when the planned expenditure is greater than the planned income.
Net cash flow is the difference between total planned income and total planned expenditure each month.
q q q
A budget surplus happens when the planned income is greater than the planned expenditure.
q q q q q q q q q
Opening cash in a budget is the amount of money a person or household plans to have at the start of a month or other budget period.
Closing cash in a budget is the amount of money a person or household plans to have at the end of a month or other budget period.
