Budgeting

Recap Questions What is Net Cash? What is a budget surplus? What is a budget deficit? What is opening cash? What is closing cash?

Today we will learn: Completing a budget: Calculating Net Cash Calculating Opening & Closing Cash Analysing the budget

Wright Family Mar April May June Total Total Income 15,000 16,700 14,900 Total Expenditure 13,900 Net Cash Opening Cash 500 Closing Cash

Example It’s Monday. I check my money. I have €5 in my money box. I go to work. I get paid €20 On my way home I stop at the shop and spend €12.

Questions What is my Income? What is my expenditure? What is my net cash? What is my opening cash? What is my closing cash?

Example January February March Total Total Income 4,000 4,500 Total Expenditure 2,500 3,000 4,200 Net Cash Opening Cash 500 Closing Cash

Question January February March Total Total Income 2,000 2,300 Total Expenditure 1,500 2,100 1,600 Net Cash Opening Cash 200 Closing Cash

Recap Questions What type of expenditure is the most important? If you have a budget deficit, what type of expenditure should you try to reduce first? If you have a budget surplus, name one thing you can do with it. What is impulse buying? What is an opportunity cost?