1. 1st Year Business Studies
Budget Revision
12th November 2012

2. 3 types of Budget Questions
Continuing a budget for the next three months
Estimating a budget for the remainder of the year
Revising a budget

3. 1. Continuing a budget Obama Family Jan Feb Mar Apr May June Total
Planned Income €
Barack - Salary
1,000
Michelle - Salary
800
Child Benefit
280
Total Income
2,080
Barack Obama’s salary will remain the same although he expects to receive a bonus of €200 in May
Michelle Obama is due a pay increase of 15% from 1st April
Child benefit will remain the same each month

4. 1. Continuing a Budget Obama Family Jan Feb Mar Apr May June Total
Planned Income €
Barack - Salary
1,000
1,200
6,200
Michelle - Salary
800
920
5,160
Child Benefit
280
1,680
Total Income
2,080
2,200
13,040

5. 2. Estimating a budget for the remainder of the year
Obama Family
Jan
Feb
Mar
Apr
Jan-Apr
Estimate May-Dec
Total for Year
Planned Income €
Barack – Salary
1,000
4,000
Michelle - Salary
800
3,200
Child Benefit
280
1,120
Total Income
2,080
8,320
Barack Obama’s salary will remain the same although he expects to receive a bonus of €200 and overtime of €300 in May and August
Michelle Obama is due a pay increase of 15% from 1st July
Child benefit will remain the same each month

6. 2. Estimating a budget for the remainder of the year
Obama Family
Jan
Feb
Mar
Apr
Jan-Apr
Estimate May-Dec
Total for Year
Planned Income €
Barack – Salary
1,000
4,000
8,500
12,500
Michelle - Salary
800
3,200
7,120
10,320
Child Benefit
280
1,120
2,240
3,360
Total Income
2,080
8,320
17,860
26,180

7. 3. Revising the Budget Obama Family Jan Feb Mar Total Planned Income €
Barack – Salary
1,000
3,000
Michelle – Salary
800
2,400
Child Benefit
280
840
Total Income
2,080
6,240
Barack’s Salary will increase by 20% from 1st February
Michelle’s Salary will end on 31st January and will be replaced by Jobseeker’s Benefit of €400 per month

8. 3. Revising the Budget Obama Family Jan Feb Mar Total Planned Income €
Barack – Salary
1,000
3,000
1,200
3,400
Michelle – Salary
800
2,400
400
1600
Child Benefit
280
840
Total Income
2,080
6,240
1,880
5,840

9. Important Budget Words
Income
Expenditure
Regular
Irregular
Fixed
Benefit-in-kind
Opportunity Cost
Impulse Buying
Budget
Budgeting
Surplus
Deficit
Net Cash
Increase
Decrease
Estimate

10. Yes We Can