Budgeting Flashcards
1
Q
What is a budget?
A
A plan for spending money
2
Q
Advantages of a household budget
A
Prevents overspending Provides for unexpected expenses Provides security, reduces stress Sufficient funds during periods of high expenditure Encourages saving Limits use of credit Develops money management skills
3
Q
Percentage to spend on food
A
25%
4
Q
Percentage to spend on housing
A
25%
5
Q
Percentage to spend on household expenses
A
15%
6
Q
Percentage to spend on clothes
A
10%
7
Q
Percentage to spend on transport
A
10%
8
Q
Percentage to spend on health
A
5%
9
Q
Percentage to spend on leisure
A
5%
10
Q
Percentage to spend on savings
A
5%
11
Q
Steps to creating a budget
A
List all sources of income Calculate the yearly expenditure Incorporate savings Allow extra finance for times of high expenditure Review regularly
12
Q
MABS
A
Money Advice and Budgeting Service
Free, confidential, independent service for people in financial difficulty
Supports clients to deal with their debts, draw up realistic budgets, maximise incomes
