Budgeting Flashcards
1
Q
Reasons to create a budget
A
Develop good money management skills
Prevents overspending
Reduces reliance on credit cards and debt
Financial security = alleviates worry and stress
Savings can be made
2
Q
Benefits of savings
A
Useful in unplanned circumstances eg job loss
3
Q
Guidelines for budgeting
A
Estimate total reliable income List all expenditure (essential and discretionary) Allocate percentages Allocate savings Review and evaluate eg new baby
4
Q
Percentage for housing
A
25%
5
Q
Percentage for food
A
25%
6
Q
Percentage for household expenditure
A
15%
7
Q
% for education and childcare
A
10%
8
Q
% for travel
A
5
9
Q
% for Clothing
A
5
10
Q
% for medical
A
5%
11
Q
%for savings
A
5
12
Q
% for entertainment and leisure
A
5%
13
Q
Example of travel costs
A
Petrol/diesel
Leap card
Insurance
14
Q
Example of household expenses
A
WiFi
Electricity
Tv license
15
Q
Example of education cost
A
Uniforms
Books
College fund
