A3.4.1Budgeting (docx) - CliffsNotes (2024)

Background In life you may want to get a job to earn money so that you can move out from your family home and start being more independent. You will have to learn to budget your money so that you can pay for rent, food, household products, travel expenses and you may also want to save some money aside for later life. Relevant job roles: In most jobs you will need to know how to budget so that you save money for the company you work for and so you can give advice to others about budgeting. Administrator Accountant Bank Advisor Task Aim Complete the to-do list by using research skills, problem solving and by checking your work thoroughly. You will be looking at how to budget your money to ensure that all your bills are paid. You will also look at credit cards and find the best APR available. You will also look at Payday loans and determine how much money needs to be paid back after borrowing. You will need to ask your supervisor for help when required. You will need this information ready by 4pm today. Task Outcomes Use a calculator to solve mathematical problems Solve problems using money Work with decimals Increase and decrease amount using percentages Identify fractions of a whole number Increase and decrease amounts using fractions Solve simple problems involving ration, where one number is a multiple of the other A 3.4.1Budgeting Number

Things to do You have decided it's time to move out and become more independent. You are working towards a teaching qualification and have on the job training. You work full time and work 8am - 4pm Monday to Friday. How many hours do you work a week? You earn £9.60 an hour and work 8.00am - 4.00pm Monday to Friday. How much do you earn a day? How much do you earn a week? How much do you earn a month? How much do you earn a year? Now you have worked out how much you earn a year, you must deduct the amount of tax and national insurance you have to pay? You pay 15% as tax and 5% national insurance. You have decided you can afford to move out now and rent a property. Your friend would also like to move out, so you decide to find somewhere to rent together. This will halve your rent and gas, water and electric bills. You have also decided that you will pay for the Internet, TV and Phone and your friend will pay for the TV license as they don't earn quite as much as you. It will also mean you can save some of your earnings. You find a 3 bed house which will cost £645 PCM. You have to pay your bills on top of your rent as they are not included in the rent. Gas - £60 per month Electric - £50 per month Water - £33 per month Council tax - £120 per month TV License - £12 per month Shopping - £200 per month Internet, TV and Phone - £45 per month A 3.4.16m 6m NOT TO SCALE

How much will all of these bills cost you per month? How much will it cost you a month if you rented this property and had to pay all of your bills? How much will you have left to save? If you lived on your own and rented this house would you have enough money to afford this? You also find the following properties which may be suitable. Property TypeNumber ofbedroomsCost per monthGas and Electric Bills included Yes/No Flat2£695No House3£700Yes House2£675No Bungalow1£615No House2£590Yes Flat3£660No House4£750Yes Which of these properties will work out the cheapest? Which of these would be the most expensive and could you still afford it? With and without sharing with your friend. You decide you need to take out a payday loan. You need a loan of £400 and you want to pay it back within 5 days. Here is a list of some of the companies offering payday loans. CompanyLoan AmountAmount of daysInterest Wonga.com£40056% Quick Quid£40057.5% More Money£4001016% PD Loans£4001012% Work out how much interest you would have to pay on each of these loans. Which company is the best to use to take out the loan? A 3.4.18m