Chapter 16: Money Management Flashcards Preview

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Flashcards in Chapter 16: Money Management Deck (10)
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1

What is the purpose of a budget

To balance income and expenditure so that you have enough money for what you want to buy

2

What are tax credits?

Part of a person's income which is not taxed by the government

3

How do you calculate the Net tax

Gross tax -tax credits = net tax

4

System for planning a budget

-Work out your monthly/weekly income in one column
-Make a list of m/w expenses in another column
- Add the totals of each budget and balance it

5

What is gross income

The total amount earned before deductions

6

PAYE

Pay as you earn
Pays for state services

7

PRSI

Pay related social insurance
Pays for social benefits

8

What is net income

'take home pay' after deductions

9

How to calculate net income

Gross income - deductions = Net income

10

What is a budget?

A plan for spending money