Listening! When God gave out brains, I thought he said trains....... And I missed mine. When God gave out looks, I thought he said books…….. And I didn’t want any. When God gave out noses, I thought he said roses…….. And I asked for a red one. When God gave out legs, I thought he said kegs………… And I asked for two fat ones.

Listening! When God gave out ears, I thought he said beers…….. And I asked for two long ones When God gave out chins, I thought he said gins……… And I ordered a double. When God gave out heads, I thought he said beds…… And I asked for a soft one. Since then I’ve tried to listen better!!!!!

Budgeting

Recap Questions What is a budget? What is budgeting? Why do we budget?

Today we will learn: Preparing a budget: How to compare income and expenditure How to manage a surplus and deficit How to manage opening and closing cash

The Cost of Running a family home 2012 Article by Conor Pope www.irishtimes.com Main Costs Item Cost Owning/Maintaining a home €22,000 Health Insurance €2,201 Car €4,878 Food €5,390 Entertainment €3,000 Mobile Phones €964 Education €8,000 Clothes/Grooming €1,400 Total €47,833

Expenditure Income Vs. Net Cash Definition: Net Cash is the difference between expected income and expected expenditure for a particular period. Income Expenditure Vs.

Deficit/Surplus If we spend more than we earn, we end up with a Budget Deficit. Expenditure is Greater than Income If we spend less than we earn, we end up with a Budget Surplus. Income is Greater than Expenditure D S

What can we do with a….. Deficit Surplus

Examples July August September Income €4,500 €4,800 Expenditure €3,000 €3,100 €4,600 Net Cash April May June Income €2,540 €2,965 €2,850 Expenditure €2,670 €2,580 €2,630 Net Cash

Opening & Closing Cash Opening Cash is the money we have or expect to have at the beginning of a particular period Closing Cash is the money we have or expect to have at the end of a particular period Closing Cash = Opening Cash + Net Cash

Kealy Family Jan Feb March April Total Total Income 12,000 12,600 13,400 Total Expenditure 10,500 Net Cash 1,500 Opening Cash 100 1,600 Closing Cash

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

Convey Family May June July August Total Total Income 12,950 Total Expenditure Net Cash Opening Cash 700 Closing Cash

Recap Questions What is net cash? What is opening cash? What is closing cash? What is a surplus? What can we do with it? What is a deficit? What can we do with it?