Money Management Terms

Leaving CertificateAccountingBusinessHome Economics

    • 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.
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