Budgeting and money planning. Unit 2

Transcription

1 Budgeting and money planning Unit 2

2 This is Rob > He works 16 hours a week. > He is claiming benefits. > He is a lone parent of three children under 16. > Rob is struggling to pay his bills

3 What can he do?

4

5 Rob s income Housing Benefit and Council Tax reduction Child Benefit He receives for the first child, for second and third child = 48.1 per week. Wages He works in a warehouse and earns 840 per month. Child Tax Credit Rob did not know about this benefit. His friend told him to apply. He applied but he made a mistake on the form and is still waiting to hear from the HMRC.

6 Rob s expenditure Electricity 25 per week Rent 40 per week Catalogue 8.50 per week Phone 20 per week Travel/transport 10 per week TV Licence 147 per year Water charges 50 per month Council tax 900 per year Food and other household items 110 per year

7 Money comes and goes at different times. Monthly Weekly Every 2 weeks Every 4 weeks

8 The budget should be calculated in months

9 Weekly to monthly To do this convert Fortnightly to monthly Four weekly to monthly Yearly to monthly

10 Weekly to monthly Weekly amount x 52/12 = Worked example: Rob wants to calculate his monthly income from Child Benefit: Weekly amount of Child Benefit = Using the formula above x 52/12 = Therefore, Rob receives monthly from Child Benefit.

11 Two weekly to monthly Two weekly amount x 26/12 =

12 Four weekly to monthly Four weekly amount x 13/12 =

13 Total 1 Total 2

14 Wages 840 Total 1 Total 2

15 Wages 840 Child Benefit 208 Total 1 Total 2

16 Wages 840 Child Benefit 208 Total 1 1,048 Total 2

17 Wages 840 Rent 173 Child Benefit 208 Total 1 1,048 Total 2

18 Wages 840 Rent 173 Child Benefit 208 Electricity 108 Total 1 1,048 Total 2

19 Wages 840 Rent 173 Child Benefit 208 Electricity 108 Council tax 75 Total 1 1,048 Total 2

20 Wages 840 Rent 173 Child Benefit 208 Electricity 108 Council tax 75 Food and other household items 477 Total 1 1,048 Total 2

21 Wages 840 Rent 173 Child Benefit 208 Electricity 108 Council tax 75 Food and other household items 477 TV Licence 12 Total 1 1,048 Total 2

22 Wages 840 Rent 173 Child Benefit 208 Electricity 108 Council tax 75 Food and other household items 477 TV Licence 12 Phone 87 Total 1 1,048 Total 2

23 Wages 840 Rent 173 Child Benefit 208 Electricity 108 Council tax 75 Food and other household items 477 TV Licence 12 Phone 87 Travel 43 Total 1 1,048 Total 2

24 Wages 840 Rent 173 Child Benefit 208 Electricity 108 Council tax 75 Food and other household items 477 TV Licence 12 Phone 87 Travel 43 Water rates 50 Total 1 1,048 Total 2

25 Wages 840 Rent 173 Child Benefit 208 Electricity 108 Council tax 75 Food and other household items 477 TV Licence 12 Phone 87 Travel 43 Water rates 50 Total 1 1,048 Total 2 Catalogue 37

26 Wages 840 Rent 173 Child Benefit 208 Electricity 108 Council tax 75 Food and other household items 477 TV Licence 12 Phone 87 Travel 43 Water rates 50 Total 1 1,048 Total 2 1,024 Catalogue 37

27 Total 1 Total 2 = 1,024 1,025 = 23 surplus Wages 840 Rent 173 Child Benefit 208 Electricity 108 Council tax 75 Food and other household items 477 TV Licence 12 Phone 87 Travel 43 Water rates 50 Total 1 1,048 Total 2 1,024 Catalogue 37