Budgeting

Question 1

Reasons to create a budget

Answer 1

Develop good money management skills
Prevents overspending
Reduces reliance on credit cards and debt
Financial security = alleviates worry and stress
Savings can be made

Question 2

Benefits of savings

Answer 2

Useful in unplanned circumstances eg job loss

Question 3

Guidelines for budgeting

Answer 3

Estimate total reliable income
List all expenditure (essential and discretionary)
Allocate percentages 
Allocate savings
Review and evaluate eg new baby

Question 4

Percentage for housing

Answer 4

25%

Question 5

Percentage for food

Answer 5

25%

Question 6

Percentage for household expenditure

Answer 6

15%

Question 7

% for education and childcare

Answer 7

10%

Question 8

% for travel

Answer 8

5

Question 9

% for Clothing

Answer 9

5

Question 10

% for medical

Answer 10

5%

Question 11

%for savings

Answer 11

5

Question 12

% for entertainment and leisure

Answer 12

5%

Question 13

Example of travel costs

Answer 13

Petrol/diesel
Leap card
Insurance

Question 14

Example of household expenses

Answer 14

WiFi
Electricity
Tv license

Question 15

Example of education cost

Answer 15

Uniforms
Books
College fund

Question 16

Role of MABS

Answer 16

Free, confidential service for those at risk of debt

Advice on budgeting
Develops money management skills
Identity sources of credit that best fit consumers needs

Question 17

MABS is funded by

Answer 17

Department of social protection

Question 18

Who does MABS operate with

Answer 18

Citizens information board