Budgeting

Question 1

Household bills

Answer 1

Household bills are the costs associated with living in a home. They are
a big percentage of the expenses in a budget. Household bills include council rates, electricity and gas bills, water and sewerage rates, telephone bills and internet connections.

Question 2

Purchasing a car

Answer 2

Total cost = Deposit + Total repayments
Total repayments = Repayment × Number of repayments
Interest paid = Total cost − Sale price

Question 3

Car insurance

Answer 3

The cost of insurance is affected by make and model of car, your age and driving history, finance, modifications or accessories and location.
No-claim bonus and excess amount are major factors.

Question 4

Stamp duty

Answer 4

1 Round the cost of the vehicle up to the nearest $100 (or as required). 2 Express the stamp duty as a fraction or decimal.
3 Multiply the answer in step 1 by the answer in step 2.

Question 5

Car running costs

Answer 5

Car running costs involve maintenance, repairs, fuel, improvements, parking, tolls, car washes and fines.

Question 6

Fuel consumption

Answer 6

Fuel consumption = Amount of fuel (L) × 100 OVER Distance travelled (km)

Question 7

Budgeting

Answer 7

Budgeting involves balancing of income and expenses. Budgets are created for a specified time such as weekly.

Question 8

Creating a budget

Answer 8

1. List all the income categories.
2. List all the expense categories.
3. Calculate the total of the income and expenses categories.
4. Balance the budget by modifying the categories or by entering a balance category.