Chapter 27- Money Management Flashcards
What is money management ?
Dividing up your income to allow a certain amount towards each expense.
What is a budget ?
A plan for spending money
What is the purpose of a budget ?
To balance income with expenditure
What are the main expenses in family ?
- rent/mortgage-25%
- food- 20%
- household expenses-15%
- emergencies-5%
- personal expenses-15%
- savings-5%
- entertainment-5%
- education -10%
What is PAYE?
Pay as you earn. Goes to the government and is used for running the country
What is PRSI
Pay related social insurance- goes towards paying people during illness and employment
What is net income?
Take home pay. Money after deductions
What is tax credit ?
Part of the income which is taxed.
What is wages?
Weekly payment
What is salary ?
Monthly payment
What to do when planning a budget ?
- Determine total income
- Make a list of expenses
- Allot a certain percentage to each expense
What is MABS?
Money advice and budgeting service. Helps families and individuals with debt problems.
What are the advantages of budgeting ?
- more security-fewer financial worries
- allows for major bills
- less chance of overspending and impulse buying
- areas of overspending become obvious
- sets a good example
What is saving ?
Putting a certain amount of money aside each week/month
What is credit buying ?
But now pay later. Buyer pays it back in full plus interest.
