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Adult Income & Expenditure
LEARNING AIM: Calculate Budgets.
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How does the government raise money?
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Income Tax Rates Taxable Income Basic Rate: 20% Higher Rate: 40%
£0 - £35000 Higher Rate: 40% £ £150000 Additional Rate: 50% £
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What do you know: Income Tax?
Example How much income tax would you pay on £20 000? £20 000 20% of £12 525 £7 475 = £2 505 £12 525 £2 505 £2 505
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How do we Calculate National Insurance?
Example How much National Insurance would you pay on £20 000? £20 000 12% of £12 772 £7 228 = £ £12 772 £ £
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Gross & Net Income Gross Income: Income before deductions: £20000
Subtract income tax: - £2505 Subtract national insurance: - £ Net Income: (Income after deductions)
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Family Expenses
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How much will it all cost?
What are some household expenditures? Council Tax Mortgage/Rent Gas & Electricity Water Food Internet/Phone TV Licence Car Running Costs ≈ £125 ≈ £450 ≈ £100 ≈ £20 ≈ £200 ≈ £35 Estimate an average of these monthly expenditures ≈ £25 ≈ £250 £1545
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Budgeting Income & Expenditure
Meet Geoff He needs to budget his income & expenditures Budget Sheet Scenario Card
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Today’s Task Complete Geoff’s income calculations.
Use the information sheet to complete the expenditures calculations
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£ £ £ £ £ £ £ £ £ £
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£ £ £ £ £ £ £ £ Explanation as to where income column calculations come from £
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£400.00 £10.00 £121.08 £100.00 £35.00 £220.00 £20.00 Explanation as to where first expenditures come from
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£ £400.00 £ £10.00 £ £121.08 £100.00 £ £35.00 £ £220.00 £20.00 £22.40 £2.50 £47.48 £98.73 £4.50 £40.00 £35.00 £ £
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Spending Money Spending Money = Total Income – Total Expenditure
Monthly Spending Money: £ – £ = £88.51 Weekly Spending Money: £88.51 ÷ 4 = £22.13
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Do the same for Scott 1. Incomes 2. Expenditures
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£ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £ £
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£ £600.00 £ £25.00 £ £147.75 £150.00 £ £35.00 £ £570.00 £35.00 £22.40 £12.08 £ £79.75 £ £134.77 £ £4.50 £100.00 £ £70.00 £ £ £
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Combined Spending Money
Spending Money = Total Income – Total Expenditure Monthly Spending Money: £ – £ = £919.14 = £ per family member Weekly Spending Money: £ ÷ 4 = £76.60 What else might they need to spend their money on? Discuss that the family save money by living together. Discuss other costs not listed – child care, more likely to do more leisure activities with children etc Clothes Children – Trips, Childcare Eating Out Pension Leisure Activities Gym Membership
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Write two things you have learnt today.
Now link them up with a TRIC
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