1. Copy and fill in the blanks. a. A budget is a plan that shows expected income and ____________ for a certain period of time. b. The difference between planned income and planned expenditure is called ____________ cash.
c. If the planned income is greater than the planned expenditure, the net cash is a ____________ (+).
d. If the planned expenditure is greater than the planned income, the net cash is a ____________ (–).
e. ____________ cash is any money an individual or household has at the start of a given period. f. ____________ cash is any money an individual or household has at the end of a given period. g. The closing cash for one month is the ____________ ____________ for the next month.
2. Record the formula for calculating: a. Net cash b. Closing cash.
3. Explain the term ‘net cash deficit’. 4. List three pieces of advice you would give someone with a budget deficit. 5. Look at the extract from a family budget and answer the questions that follow. Jan
Feb Net cash
Opening cash Closing cash
450 250 700
(200) 700 500
Mar Apr May (850) 500
400 (350)
(350) 50
(216) 50
(166)
Jun 300
(166) 134
Total
(116) 250 134
a. How much does the family plan to have saved at the end of the six months? b. Is the family planning to live within their means? Give one reason for your answer. c. Which month will the financial situation be worst? d. Does the family have enough savings to cover the deficit in this month? e. Redraft this section of the budget if the opening cash for the family changed to €500 deficit. f. How might this redrafted budget affect the family?
