https://quizlet.com/41550927/money-management-leaving-cert-home-economics-flash-cards/
- Budget – A plan for spending money.
- Income – Money received.
- Expenditure – Money paid out.
- Gross Income – Total amount earned before deductions.
- PAYE – Pay As You Earn. Income Tax. Paid to State.
- PRSI – Pay Related Social Insurance. Pays for benefits if and when needed.
- Net Income – Total amount earned after deductions. Take home pay.
- Statutory Deductions – PAYE and PRSI
- Voluntary Deductions – Optional, e.g. health insurance.
- Household Expenses – Accommodation (rent/mortgage). Food. Clothing. Medical expenses. Travel. Electricity. Heating (gas/oil/etc.). Entertainment. Savings.
- Tax Credit – System used to calculate the amount of tax a worker will pay.
- Net Tax – = Gross Tax – Tax Credits
-
Advantages of Budgeting –
- 1. Security.
- 2. Highlights overspending.
- 3. Minimises waste.
- 4. Good example.
-
Considerations when choosing where to SAVE –
- 1. Interest Rate.
- 2. Security.
- 3. Ease of withdrawal.
- Places to Save –
- 1. Credit Union.
- 2. Post Office.
- 3. Bank.
- 4. Building Soceity.
-
Advantages of Saving –
- 1. Earn interest.
- 2. Cheaper to buy with saved money than on credit.
- 3. No debt.
- Credit – Buy now, pay later.
-
Forms of Credit –
- 1. Credit Card
- 2. Loan
- 3. Bank Overdraft
- 4. Hire Purchase
-
Advantages of Credit –
- 1. Use of item before it’s paid for.
- 2. Takes to long to save for some items, e.g. houses.
-
Disadvantages of Credit –
- 1. Interest charged so costs more.
- 2. Encourages spending.