1st Year Business Studies Budget Revision 12th November 2012

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

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

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

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

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

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

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

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

Yes We Can