2.6 Budgeting

• The meaning and importance of a household budget
• Sources of household income
• Types of household expenditure
• Needs and wants in the family
• Factors to consider when making a household budget
• Steps in making a household budget
• Balanced, surplus and deficit budgets
• Saving, record keeping and adopting a budget in daily life

• explain the importance of budgeting for a household
• examine factors to consider when making a budget for a household
• make a budget for household use
• adopt use of a budget in day-to-day life

“How does a budget affect household spending?”

“How can effective budgeting empower individuals to achieve financial stability?”

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1. What a budget is
   40 min · 1 practice tasks · quiz
   Define a budget and distinguish income from expenditure.
2. The importance of budgeting
   40 min · 1 practice tasks · quiz
   Explain the importance of budgeting for a household.
3. Sources of household income
   40 min · 1 practice tasks · quiz
   Identify and total the sources of household income.
4. Types of household expenditure
   40 min · 1 practice tasks · quiz
   Classify household expenditure as fixed, variable or incidental.
5. Needs and wants
   40 min · 1 practice tasks · quiz
   Distinguish needs from wants and set priorities for spending.
6. Factors: the household
   40 min · 1 practice tasks · quiz
   Examine household factors that shape a budget.
7. Factors: income and prices
   40 min · 1 practice tasks · quiz
   Examine wider factors that affect a household budget.
8. Steps in making a budget
   40 min · 1 practice tasks · quiz
   Follow the steps for making a household budget.
9. A sample household budget
   40 min · 1 practice tasks · quiz
   Make and interpret a sample household budget.
10. Balanced, surplus and deficit budgets
    40 min · 1 practice tasks · quiz
    Tell balanced, surplus and deficit budgets apart and handle each.
11. Saving and planning for goals
    40 min · 1 practice tasks · quiz
    Plan savings for short, medium and long term goals.
12. Smart shopping
    40 min · 1 practice tasks · quiz
    Apply smart shopping practices to keep within the budget.
13. Keeping records and monitoring
    40 min · 1 practice tasks · quiz
    Keep records and monitor the budget against actual spending.
14. Living within your means
    40 min · 1 practice tasks · quiz
    Adopt budgeting habits that keep spending within income.
15. Review of budgeting
    40 min · 1 practice tasks · quiz
    Review the node and answer the key inquiry questions.