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Christmas budgeting

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This presentation will cover:

essential and non-essential purchases

what budgeting is and why it is useful

personal budgeting for Christmas.

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Learning objectives

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Essential or non-essential?

Can you think of some of your own examples of essential and non-essential purchases?

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However, the cost can vary tremendously, depending on how many gifts are purchasedand how much each one costs.

Are gifts essentials?

In many ways, gifts are socially essential.It would be difficult for most people not to give gifts at birthdays and holidays like Christmas.

It is important to be aware of your budget and base your gift purchases on what you can afford. Otherwise you may get into debt, which can be much harder to deal with.

What is a budget?How could you work out what your budget is?

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Budget planning

A budget is a plan of expected income and expenditure over a period of time. Personal budgets can be made weekly or monthly. Businesses tend to make annual budgets.

what your income will be for the week or month

To make a budget, you need to work out:

what money you need to spend during that week or month – your outgoings

how best to balance your income and outgoings so that you do not run out of money!

Look at the example on the next slide,then try writing your own budget.

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Budget planning

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Personal budgeting

Category Budget amount (£) Actual amount (£) Variance (£)

Income

Parents

WorkOther

Income subtotal

Expenses

Food

Transport

Clothing

Shopping

Entertainment

Savings

Christmas presentsMisc./other

Expenses subtotal

Total income (income – expenses)