Financial Studies Unit 1 Topic 9 0.0 / 5 ? AllFinancial StudiesAll LevelsAll boards Created by: rswift91Created on: 13-01-21 08:00 What does a budget enable someone to do? Plan finances Focus on financial goals Identify budget balance or deficit 1 of 14 Types of earned income Income from salary Income if self employed Bonuses 2 of 14 Types of unearned income Benefits Return on investments Pensions Allowances Gifts Loans 3 of 14 Define Expenditure Outgoings 4 of 14 List the Mandatory expenditure (including car owners) Income Tax NI Council Tax TV Licence Motor insurance, tax and MOT 5 of 14 What is necessary/essential expenditure? Any expenses that are required for day to day needs. e.g. bills, food, basic clothes 6 of 14 What is discretionary expenditure? Left over money that you have flexibility with. e.g. to save, holidays, designer clothes 7 of 14 What does it mean to have balanced account? Your expenses and income are equal 8 of 14 What does it mean to have a negative balance? Your expenses are greater than your income 9 of 14 What does it mean to have a positive balance? Your have surplus money 10 of 14 How can you deal with a negative balance Spend less Earn more 11 of 14 What is cash flow forecasting A budget over a longer period This helps someone plan for fluctuations in income and expenses 12 of 14 How does the cost of living impact a budget? Cost of living includes inflation on goods. Long term plans will need to account for this 13 of 14 Why might someone find it difficult to buy a home once they have started renting? Income remains static Property price increase Cost of living increase Unforeseen spending 14 of 14
Mobile Security Market Analysis, Key Players, Business Opportunities, Share, Trends, High Demand and Growth Forecast 2023-2027 0.0 / 5
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