PSD: Managing Own Money Challenge 5

Level 2 – Challenge 5 For this challenge, you need to interview 3 people with different circumstances. You need to ask them how they budget for different items and services. You will need to record the details of each interview (not word for word) and then write a summary/report at the bottom.

Different Circumstances The following slides should give you some ideas of what is meant by ‘different’ circumstances…

Example 1: Young person A young person or school-aged child may be reliant on ‘pocket money’ as their source of income. However, they may have a paper round which provides further income. Their family may pay for their clothes and they may wait until birthdays and Christmas to ask for special items so do not need to save or spend money on these things. What they may spend their money on is sweets, football stickers, books, comics, CDs, DVDs etc. They may save money for the future (or not) or may regularly save up to buy more expensive items such as Xbox games.

Example 2: University Student The circumstances of this person may vary dependent upon the background of their family? They may have to pay for their university course themselves along with rent and food etc. unless their family is very wealthy and has paid for this for them. They will need money for accommodation, household bills, food, transport, books and stationery for their studies. They will want some money for socialising. They may not be able to save money but merely try and limit the amount of debt they get into by the end of their course.

Example 3: Single Person in 20s Is this person working and earning money? If so, they might need money for transport to work, for packed lunches and uniforms? If they are not, are they on benefits of some kind? As a single person, they may want to go out and socialise so they may spend their money on entrance/tickets to events, drinks and food. They may also have hobbies or visit a gym which involve expenses.

Example 4: Person with a Family As well as for themselves, this person needs to provide somewhere to live and food for their family. Do they work or do they claim benefits such as child benefit and income support? Perhaps they are disabled in someway. All their money may go on essentials: rent, bills, food, transport, clothes for their continually-growing children etc. However, they may save up for an annual holiday or special event.

Example 5: Retired Person Is this person still working or reliant on their state pension or private pension? Are they disabled in someway? As an older person, they probably have all the possessions and clothes they need. They may also own their own home, but they will still have to pay council tax and bills. They may spend money on hobbies or their children or grandchildren. They may watch the television a lot so they must remember to pay for their TV licence and perhaps they also pay for something like Netflix each month!

Challenge 5 Find 3 people you know with different circumstances and interview them. Record the general gist of what they say about what income and outgoings they have and how they budget for things. Now fill-in the Challenge 5 document called: PSD-MOM-L2-C5.docx (including the report section), save your updated document (with your initials included at the end of the filename) and email it back to me.