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BUDGET, Feb/March 2023, Chapter 4 - Coggle Diagram
BUDGET
Why do we prepare a budget
to live within our means
think about spending
identify
when we spend a lot
the months we need more money to cover bills
Plan for large purchase items
Expenditure
Discretionary
Fixed
Irregular
Debt
What is it?
How can you manage it?
How can you recognise it
Budget Surplus
income greater than expenditure
How should a household deal with a budget deficit?
Income
Irregular
Lotto win, interest on savings
Regular/planned
Salary, wages, child benefit
Balanced Budget
expenditure equals income
Budget Deficit
income is less than expenditure
Be able to explain the different areas of your budget solution
This months closing cash is next months opening cash except for the TOTAL Column
Net Cash + Opening Cash = Closing Cash
Borrowing
Taking out a loan
expected income and expenditure
Financial Plan
Feb/March 2023
Chapter 4