Money Mangement Flashcards
What does a good money manger use?(5)
- Goal: balance income
- Resources: money, time and energy
- Plan: to make a budget
- Action: put the plan into action
- Evaluation: did I reach my goal?
How to plan your own budget?(5)
- Work out weekly/ monthly income.
- List weekly/ monthly expenses and savings in column 2.
- Add the total in each column and balance budget
- If expenditure is greater than income your over spending
- If income is greater, extra savings can be made
What is PAYE ( pay as you earn)??
- PRSI ( pay related social insurance)??
- voluntary deductions??
Income tax- it pays state services
- pays benefits if become unemployed or unable to work
- optional e.g health insurance
What is gross income?
Total amount earned before deductions
What is net income?
Take home - pay after deductions
What is tax credits
Part of a persons income that isn’t taxed
Name 3 saving options
Bank, an post, credit union
What should you consider when choosing where to save?(4)
Interest rates: how much you’ll earn on your savings
Security
Ease of withdrawal
Incentives (free banking)
What does credit mean?
Buy now, pay later
Advantages of buying on credit?(2)
- Consumer has the use of the item
2. Some large items couldn’t be bought with credits
Disadvantages of buying on credit(2)
- Credit costs more, as interest is charged
2. Credit encourages consumers to buy more than they can afford
Home Filing is used for??
Useful for storing receipts, bills and guarantees
Name 3 advantages of using home filing system
- important documents stored safely and found easily
- unpaid bills easily found
- school progress can be monitored
What is a budget?
- and what is an advantage of having a budget
A plan for spending money
- it balances your income with your expenditure ( outcome)
