CHAPTER 12 Household Budgets


1.12 Prepare and analyse a budget, determine the financial position, recommend appropriate action and present the analysis in tabular and graphic formats.


Household Budget


Irregular Expenditure


Closing Cash


Planned Income


Discretionary Expenditure


Budget Surplus


Planned Expenditure


Net Cash


Fixed Expenditure Opening Cash


Budget Deficit Living Beyond Their Means


1. Explain reasons why a household would prepare a household budget.


2. Calculate net cash, opening cash and closing cash for each month of a budget.


3. Prepare a household budget.


4. Identify whether a budget has a surplus or deficit and calculate the amount.


CHAPTER 1 L.O.


2 1.1 3 11 24 1.2 1.3 1.11 2.11


5. Recommend appropriate action for a household with a budget surplus or deficit


6. Determine the financial position of a household by analysing closing cash figures.


7. Revise a budget to reflect a change in income or expenditure and calculate the impact on net cash and closing cash.


8. Interpret budget data presented in table and graph format.


CLASS ACTIVITY INTRODUCTION


Aoife is 22 and has just started her first full- time job earning €2,200 per month. She is delighted to finally have a regular income but by the end of her third month she has no money left and is not sure where it all went. She pays rent, has a car loan and also has bills to pay. She also spent money on takeaways, new clothes and a weekend away. She does not have any savings, and does not get paid for another two weeks.


Read each statement below and decide whether it is True or False. 1. Aoife would benefit from planning her future income and spending.


2. Earning €2,200 per month means you can spend €2,200 on whatever you like.


3. A car loan repayment can be skipped if money is tight.


4. It is fine to spend on takeaways and holidays before paying your bills.


5. Saving a small amount each month is better than saving nothing.


KEY SKILLS


107


LINKS COURSE


KEY WORDS


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