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Outline three steps that should be followed when planning a household budget - Leaving Cert Home Economics - Question 9 - 2018
Question 9
Outline three steps that should be followed when planning a household budget. (i) (ii) (iii)
Worked Solution & Example Answer:Outline three steps that should be followed when planning a household budget - Leaving Cert Home Economics - Question 9 - 2018
Step 1
(i) estimate total regular income
Answer
To effectively plan a household budget, the first step is to estimate your total regular income. This includes salaries, wages, children's allowances, pensions, and any social welfare benefits or allowances you receive. It is also essential to decide whether to create the budget on a weekly, monthly, or yearly basis.
Step 2
(ii) identify areas of expenditure
Answer
The next step involves identifying areas of expenditure. This means itemizing all bills and determining the percentage of income allocated to each expense. Creating a comprehensive list of planned spending will help you understand your financial commitments better.
Step 3
(iii) allow for savings
Answer
Lastly, it is important to allow for savings in your budget. This includes reviewing the previous year's bills to anticipate recurring expenses, accounting for special occasions like Christmas and holidays, and setting aside money to save or cover unexpected receipts.