1. Money Management Budget- balancing income with outgoings Family expenses: -Rent / Mortgage -Food -Household expenses – electricity, telephone, cleaning equipment, etc -Education -Emergencies -Personal - clothes, cosmetics -Savings - Entertainment

2. Gross pay –Deductions = Net pay Deductions: -Income tax PAYE- Pay As You Earn -PRSI- Pay Related Social Insurance -Health insurance VHI -Pension Scheme

3. Planning a budget -Determine total -Make a list of expenses -Allocate a certain % of income to each area Housing 25% Food 20% Household 15% Personal / Travel / Clothing 15% Entertainment 5% Education / Childcare 10% Emergencies 5% Savings 5%

4. Savings Advantages -More security -Allow for major bills -Less chance of overspending and impulse buying -Areas of overspending becomes obvious -Good example for children Factors to effect choice: -Interest and ease of withdrawal -Savings options

5. Credit Cards Overdrafts Term Loans Hire Purchase (H.P.)

6. Cards - Visa - Mastercard 1. Acceptable widely 2. Phone Bookings – on line shopping 3. A.T.M. 4. Up to an agreed limit 5. Monthly statement and 25 days to pay 6. Balance paid- No interest- not paid 18% 7. €40 Government levy- penalties for exceeding limits

7. Overdraft Agreement to overdraw to a certain amount. Interest on overdraft used. Useful for short term borrowing. Repayments not fixed. Penalties if over overdraft limit.

8. Term loan Loan for a fixed term Money- interest -Car Varying interest rates -House improvement Fixed/ Variable -Holiday,etc. Variable=Preferable Credit Union Death-insurance Act 1997- Larger loans

9. Hire purchase -Washing machine -T.V. -Furniture 1. Hire goods and pay in installments. 2. Interest rates- high and administration charge 3. Have the use during payment made 4. Goods may be reposessed- a court order if more than 1/3 paid

10. Law and Hire Purchase Agreement must state: Cash and Hire Puchase (H.P.) price Description of goods Amount and no. of payments A.P.R. 10 day cooling off period Rights of both parties

11. Consumer Credit Act Largest piece of Consumer protection Regulates all loans Credit advertising Info. that must be written on all credit agreements, eg. A.P.R. Control of bank charges – director of Consumer Affairs