Past Exam Questions Flashcards
Q. Suggest strategies that should be followed when planning family budgets to ensure effective management of financial resources
List the strategies
Estimate total income
List all expenditure
Allocate a percentage of income
Allocate savings
Review and evaluate
Q. Suggest strategies that should be followed when planning family budgets to ensure effective management of financial resources
(Strategy 1 = Estimate total income)
Include salary/wages
Include benefits or any other form of income
Do not include irregular income such as bonuses
Divide estimate by twelve if making a monthly budget
Divide by 52 if making a weekly budget
Q. Suggest strategies that should be followed when planning family budgets to ensure effective management of financial resources
(Strategy 2 = List all expenditure)
List essential expenditure e.g. mortgage
List discretionary expenditure e.g. entertainment
Q. Suggest strategies that should be followed when planning family budgets to ensure effective management of financial resources
(Strategy 3 = Allocate a percentage of income)
A percentage of total income should be allocated to each listed expenditure e.g. 25 % for housing
Q. Suggest strategies that should be followed when planning family budgets to ensure effective management of financial resources
(Strategy 4 = Allocate savings)
Every budget contains a saving element to cover unplanned eventualities
Savings allow for funds to be available in times of increased expenditure
Savings should be lodged into a separate savings account
Q. Suggest strategies that should be followed when planning family budgets to ensure effective management of financial resources
(Strategy 5 = Review and evaluate)
Carry out regular reviews of the budget to ensure it is effective
Keep bills and receipts to monitor spending
Recalculate budgets if there is a change in circumstances e.g. change in job
Outline the role of MABS for families who are expecting financial difficulties
It is a free, confidential and independent service for people in debt or at risk of getting into debt
Provide confidential money advice and budgeting service
Facilitate clients to develop the knowledge and skills they need to avoid getting into debt, and to deal effectively with debt situations that arise
Identify sources of credit that best meet the needs of clients
Design a family budget who have a net weekly income of 650 euros
Housing: 650 x 25% Food: 650 x 25% Household expenses: 625 x 15% Education/childcare: 625 x 10% Travel: 625 x 5% Clothing: 625 x 5% Medical: 625 x 5% Savings: 625 x 5% Entertainment/leisure: 625 x 5%
Why is 25% of one’s net income allocated to housing?
To cover the cost of a mortgage, rent, household insurance and maintenance
Why is 25% of one’s net income allocated to food?
To cover the cost of grocery shopping and eating out
Why is 15% of one’s net income allocate to household expenses?
To cover the cost of bills such as electricity, water, fuel, Wi-Fi, TV license
Why is 10% of one’s net income allocated to education/childcare?
To cover the cost of creche or childcare, uniforms, books, college fees
Why is 5% of one’s net income allocated to travel?
To cover the cost of petrol or diesel, car tax and insurance, public transport costs
Why is 5% of one’s net income allocated to clothing?
To cover the cost of clothing for work, casual wear or evening wear
Why is 5% of one’s net income allocated to medical?
To cover the cost of doctor or dentist fees or prescriptions
