TOPIC 4 DONE

Question 1

What can be used to monitor variances in a budget ?

Answer 1

• Online tools
• Keeping receipts
• Bank account statements

Question 2

Why do plans need to be flexible for the long term

Answer 2

To accommodate changing future needs wants and aspirations

Question 3

Why do you need to establish clear measurable objectives?

Answer 3

To make a budget that is suited to your needs wants and aspirations

Question 4

What are the 5 steps to drawing a budget.

Answer 4

1. List all income
2. List all expenditure
3. Decide on a time period
4. Fill in the figures for all sources of income and types of expenditure
5. Calculate the total income and expenditure

Question 5

Why is it Important to monitor financial plans.

Answer 5

1. To check how closely real life matches the forecast

2. Analyse the cause of the variance ( over or underestimated)

Question 6

How do organised, less organised and don’t plan people keep financial plans

Answer 6

Organised people keep receipts and other documents of income and expenditure and won’t find it hard to make a budget

Less organised take casual notes of figures each month to see their financial state

Don’t plan people would simply check their statements when they think about it.