1. 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.

2. 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!!!!!

3. Budgeting

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

5. 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

6. The Cost of Running a family home 2012
Article by Conor Pope
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

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

8. 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

9. What can we do with a…..
Deficit
Surplus

10. 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

11. 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

12. 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

13. 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

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

15. 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?