Managing income earned- Budget Flashcards
What is a budget?
A plan on how income should be spent over a specific period of time.
Why is a budget important?
Priorities are catered for like- medical, food, education
You do not spend more than you earn
Relieves worry and stress
Sense of discipline
The role of budget in financial stability
Provides the discipline to achieve financial stability
What is financial stability?
Prudent use of financial resources to meet future goals over an extended period of time without becoming indebted.
What are some areas that should be included in a family budget?
Repairs, Entertainment, insurance, utility bills
What are some ways to maintain a family or normal budget
Prepare/eat meals at home
Do not buy on impulse
Sharing household duties/chores instead of hiring help
Take care/ maintain house equipment or appliances
Carpool
Plant a kitchen garden/ rear livestock
Practise energy and waste saving techniques.
