Opening cash shows the amount of money that a household has at the start of its financial plan.
The figure for opening cash in the total column is the same as the figure at the start of the period being planned. For example, the Lee family’s total opening cash is €100; the same as their opening cash in January.
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Opening cash is any money an individual or household has at the start of a given period.
Closing Cash
Closing cash shows the amount of money that a household has leftover at the end of a given period. It is the last row of a budget. Closing cash is calculated as follows:
Closing cash = net cash + opening cash
The closing cash for a month is the opening cash for the next month. For example, the Lee family’s closing cash in March is €7,865, so their opening cash for April is also €7,865.
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Closing cash is any money an individual or household has at the end of a given period.
Opening cash and closing cash
Go to page 24 of your Activities and Accounts Book to practise calculating opening cash and closing cash.
PREPARING A BUDGET
Now that we are familiar with the budget entries, we can prepare a full household budget.
Along with the entries explained in the summary budget above, a full budget lists the household’s sources of income and divides expenditure into fixed, irregular and discretionary. This will give a complete picture of the family’s finances during the given period.
