1. Budgets Introduction © Donal Enright 2008 in association with Teachnet

2. Budgets Budgets are a financial plan for the future Budgets can be divided into two main sections: Income – Money that comes in Expenditure – Money we spend

3. Income Samples of Household Income:  Wages or pay  Child Benefit  Social Welfare  Interest from investments  Prize money

4. Expenditure There are three types of expenditure:  Fixed Expenditure  Irregular Expenditure  Discretionary Expenditure

5. Fixed Expenditure Fixed Expenditure is money a household must pay  Mortgage  House Insurance/ Car Insurance  Loans/ Borrowings  Car Tax  Crèche Fees

6. Irregular Expenditure Similar to Fixed but the amount changes each month  Food  Light/ Heating  School Expenses  Petrol/ Diesel  Travel  Clothes

7. Discretionary Expenditure One has a choice about these expenses (wants not needs)  Holidays  Entertainment  Decorating  TV – Cable etc  New Clothes (fashion items)