Budgeting Lesson and classwork

Budgeting

What is budgeting

The income earned before any money is paid out .

KD 10 000

​Gross Income

The money that remains after deductions.

Gross Income 10 000
Minus: Wages- 2000
Water- 500
Repairs- 100 _______
Net Income 7 400
_______

​Net Income

Net income vs Gross income

Trade-Off explained

​​ Choosing one product over another and giving up one.

Example of trade off
1. You might take a day off work to go to a concert, gaining the opportunity of seeing your favorite band, while losing a day's wages as the cost for that opportunity.
Simply meaning - Win some, lose some.

What is budgeting?

Budgeting is the process of creating a plan to spend your money!

What is a budget?

A budget is a financial plan for a defined period.

An estimate of income and expenditure for a set period of time

What is a budget?

Pay attention!

https://www.youtube.com/watch?v=z3lydPM2Xzw

Multiple Choice

Find the best definition for the underlined word:

An estimation of income and expenditure for a set period of time

• Expenses

• Money received through work or investments

• Cash

• Credit

Multiple Choice

Find the best definition for the underlined word:

An estimation of income and expenditure for a set period of time

• Rough Calculation

• Total goods

• Guess

• Random Number

Multiple Select

Find the best definition for the underlined word:

An estimation of income and expenditure for a set period of time

• Money earned

• Credit earned

• Money spent

• Money lost

Multiple Select

Based on the video...

What are the two ways that you can fix an unbalanced budget?

• Increase income

• Make more money

• Ask an accountant to review your budget

• Decrease expenses

Is an essential the same as needs?

​Yes it is.

Examples of essential expenses in a business.

Rent of the building
Water and electricity
Wages paid to workers
Repair work to the machinery
Fuel for the vehicles

Name more......

Essential vs Non-essential

What does this mean?

Non- Essentials - Wants

​Expenses that do not create income for the business

Parties for staff
Painting the offices every year
Designer couches in offices

List more....

Why is budgeting important

Multiple Select

Check all of the options most likely to be considered 'non-essential'

• *Perrier Water

• Clothes

• Netflix Subscription

• Gas

• Electricity

Multiple Select

Check all of the options most likely to be considered 'essential'

• Electricity

• Rugby tickets

• Parking tickets

• Groceries

• Gas