Budgets Introduction © Donal Enright 2008 in association with Teachnet.
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Budgets Introduction Budgets Introduction © Donal Enright 2008 in association with Teachnet
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Transcript of Budgets Introduction © Donal Enright 2008 in association with Teachnet.
Budgets IntroductionBudgets Introduction
© Donal Enright 2008 in association with Teachnet
BudgetsBudgetsBudgets are a financial plan for the future
Budgets can be divided into two main sections:
•Income – Money that comes in•Expenditure – Money we spend
IncomeIncomeSamples of Household Income:
Wages or payChild BenefitSocial WelfareInterest from investmentsPrize money
ExpenditureExpenditureThere are three types of expenditure:
Fixed ExpenditureIrregular ExpenditureDiscretionary Expenditure
FixedFixedExpenditureExpenditure
Fixed Expenditure is money a household must payMortgageHouse Insurance/ Car InsuranceLoans/ BorrowingsCar TaxCrèche Fees
IrregularIrregularExpenditureExpenditure
Similar to Fixed but the amount changes each monthFoodLight/ HeatingSchool ExpensesPetrol/ DieselTravelClothes
DiscretionaryDiscretionaryExpenditureExpenditure
One has a choice about these expenses (wants not needs)HolidaysEntertainmentDecoratingTV – Cable etcNew Clothes (fashion items)
