First year Business Studies Household Budget First year Business Studies

Starting Question We always start with cash on hand in this question. It is entered twice at the bottom of our answer page 495 495

Income This is an account of all the money that the family receives It is usually made up of wages, child benefit and possibly something like interest from a bank. It is usually given in the from of each individual in the family

Typical Example

Planned Expenditure This is made up of all three categories of expenditure that the family might have: Fixed Irregular Discretionary

Fixed Expenditure

Irregular Expenditure

Discretionary Expenditure

Total Expenditure Our three subtotals are added to give us our total expenditure

Calculating our net cash This is subtracting out total income and expenditure 25 -500 85 1015 625 495 520 20 105 495 520 20 105 1120 1120