Chapter 16: Money Management Flashcards
1
Q
What is the purpose of a budget
A
To balance income and expenditure so that you have enough money for what you want to buy
2
Q
What are tax credits?
A
Part of a person’s income which is not taxed by the government
3
Q
How do you calculate the Net tax
A
Gross tax -tax credits = net tax
4
Q
System for planning a budget
A
- Work out your monthly/weekly income in one column
- Make a list of m/w expenses in another column
- Add the totals of each budget and balance it
5
Q
What is gross income
A
The total amount earned before deductions
6
Q
PAYE
A
Pay as you earn
Pays for state services
7
Q
PRSI
A
Pay related social insurance
Pays for social benefits
8
Q
What is net income
A
‘take home pay’ after deductions
9
Q
How to calculate net income
A
Gross income - deductions = Net income
10
Q
What is a budget?
A
A plan for spending money
