Household Budget

First year Business Studies

Starting Question

495 495

We always start with cash on hand in this question. It is entered twice at the bottom of our answer page

Income

• This is an account of all the money that the family receives

• It is usually made up of wages, child benefit and possibly something like interest from a bank.

• It is usually given in the from of each individual in the family

Typical Example

Planned Expenditure

• This is made up of all three categories of expenditure that the family might have:– Fixed– Irregular– Discretionary

Fixed Expenditure

Irregular Expenditure

Discretionary Expenditure

Total Expenditure

Our three subtotals are added to give us our total expenditure

Calculating our net cashThis is subtracting out total income and expenditure

25

495

520

520

-500

20

20

85

105

105

1015

495

1120 1120

625