Household Finances

Question 1

Role of the household as a financial unit within the family

Answer 1

Contribute to country’s economy (taxes maintain state services)
Spend wages on goods and services generating wealth and employment
Mortgages and loans contribute to profits of financial institutions eg banks
Self sufficiency relieves pressure on state
Money management skills passed onto children - reduces reliance on social welfare in future

Question 2

Social factors affecting income

Answer 2

Age (older= more qualifications, moving up pay scale)
Gender
Socio economic status
Culture (salariales differ from country to country, women working)

Question 3

Sources of household income

Answer 3

Wage 
Salary
Social welfare payments
Pensions
Rental property
Savings and investments

Question 4

Difference between wage and salary

Answer 4

Wage is paid daily/weekly for work done

Salary is paid monthly and is fixed

Question 5

Gross income

Answer 5

Before any deductions

Question 6

Net income

Answer 6

Take home pay

Question 7

2 types of deductions from pay

Answer 7

Compulsory

Voluntary

Question 8

Examples of compulsory deductions

Answer 8

PAYE
PRSI
USC

Question 9

Examples of voluntary deductions

Answer 9

Private health insurance eg VHI
Tarde union subscription eg SIPTU
Loan repayments eg car
Savings
Pension fund

Question 10

What is an occupational pension

Answer 10

Set up by employers in large companies,

Both employee and employee contribute

Question 11

What does PAYE stand for

Answer 11

Pay as you earn

Question 12

What is PAYE used for

Answer 12

To run country eg state services, infrastructure

Question 13

What are tax credits

Answer 13

Money taken off tax to be paid

Depend on circumstances eg marital status

Question 14

What does PRSI stand for

Answer 14

Pay related social insurance

Question 15

What is PRSI used for

Answer 15

Pay for social welfare payments

Question 16

What does USC stand for

Answer 16

Universal social charge

Question 17

What is USC used for

Answer 17

State finances and debt repayments

Question 18

Advantages of pensions

Answer 18

Compensate for reductions in income on retirement

Protection for pension holders’ dependents in even of death

Question 19

What is p60

Answer 19

Document containing details of pay and tax, received each year from the employer

Question 20

What is P45

Answer 20

Document given to a person leaving their place of work.

It includes details of pay and tax and is passed on to the new employer to help work out tax

Question 21

3 types of social welfare payments

Answer 21

Social insurance payments
Social assistance payments
Universal payments

Question 22

Social insurance payments are paid to those who

Answer 22

Paid 39 weeks of PRSI

Question 23

Examples of social insurance payments

Answer 23

State pension
Widow/widower payment
Jobseekers benefit
Maternity and paternity benefit

Question 24

Jobseekers benefit given for how many months before job seekers allowance

Answer 24

6-9monghs

Question 25

Length of maternity leave

Answer 25

26 weeks

Question 26

Length of paternity leave

Answer 26

2 weeks

Question 27

Examples of social assistance payments

Answer 27

State pension
Widow/widowers pension
Job seekers benefit
Family income supplement
Supplementary Welfare Allowance
One parent family payment

Question 28

Examples of universal payments

Answer 28

Child benefit

Question 29

When are social assistance payments made

Answer 29

Means tested

When insufficient PRSI payments are paid

Question 30

What’s supplementary welfare allowance

Answer 30

For people waiting on social welfare

Question 31

What’s a universal payment

Answer 31

Paid to all regardless of PRSI payments

Question 32

Who gets Child benefit

Answer 32

Parents/ guardians of u16, u18 in full time education or with disability

Question 33

Two types of household expenditure

Answer 33

Discretionary

Essential

Question 34

Examples of essential expenditure

Answer 34

Fixed eg mortgage, insurance

Irregular eg food, educational needs, clothing

Question 35

Examples of discretionary expenditure

Answer 35

Holidays
Leisure
Entertainment

Question 36

Factors that would vary household expenditure

Answer 36

Socio economic status
Fami,y size/stage
Location (urban=higher rent … rural=higher travel costs)
Beliefs/values eg private education

Question 37

Ways to reduce household expenditure

Answer 37

Discount stored eg Aldi, Lidl
Own brand
Avail of special offers
Compare costs of various utility providers eg sky vs eir
Only turn on appliances when full
Buy second hand clothes
Walk/ cycle / public transport