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SULPHUR AND ITS COMPOUND

SULPHUR AND ITS COMPOUND SULPHUR AND ITS COMPOUND:A.SULPHUR (S) Sulphur is an element in Group VI(Group 16)of the Periodic table . It has atomic number 16...

CARBON AND ITS COMPOUND

WATER AND HYDROGEN

MAKING A BUDGET

MAKING A BUDGET

Def: of a budget

It is a detailed plan of expenditure for a certain period of time

also means money management

Importance of budgeting

  1. A budget promotes wise purchasing priorities are drawn and one knows what to buy and what to spend within a certain period of time.
  2. prevent impulse buying because essential items are given priority
  3. families/individuals are able to live within their means only by what they afford,
  4. the family is able to set priorities on their present and future need and their importance at each stage of family life
  5. one is able to save
  6. provides a basis of analyzing family needs
  7. family members are psychologically satisfied because their needs are catered for to their satisfaction.
  8. A family is able to estimate all their financial needs and look for other methods of supplementing income

STEPS IN PREPARING A BUDGET

There is no specific formula for making a budget because different individual family needs are unique and specific.

N/B:- The best budget is one that meets the individuals family’s financial goals, in order of priority.

Gridlines/steps to follow

  • Family financial goals (present and future)

estimate short term and long term goals of the family in order of importance

N/B:- short term goals are items/services needed after a short period of time week/month e.g clothes and household items e.g utensils, sofa set etc.

Long term are those needed over a long period of time year/several years e.g car, house, university education for children

  • Available cash income

Estimate available income from various sources over a given time e.g month.

  • List all expense, fixed and flexible
    1. these are the committed and unchangeable ones e.g car loan repayment, mortgage, house rent, hire purchase or debt payment.
    2. Flexible ones are varied and sometimes include day to day requirements.

e.gs of fixed expenses

  • Bills (water, electricity, telephone)
  • Rent
  • Loan repayment
  • School fees
  • Salaries
  • Insurances
  • Medical cover
  • Taxes
  • Savings

e.g of flexible ones

  • Food
  • Medical
  • Transport
  • Clothes
  • Household supplies
  • Entertainments
  • Estimate money to be spent on listed items

N/B:- Available records can be used/approximate an appropriate figure.

  • Set some money aside for emergency
  • Set aside money for future no matter how little e.g through
    1. savings account
    2. premium bonds
    3. investing in a co-operative society

 Factors that affect a well made budget

  1. Loss of income; makes a family live on credit/savings
  2. increase income makes a family accomplish needs comfortably and leads to adjustment of a budget
  3. goals changing (personal/family goals)
  4. not being committed/following the budget
  5.  inflation; it reduces purchasing power of a family by increasing monetary value of goods and services.

ALL HOMESCIENCE NOTES FORM 1-4 WITH TOPICAL QUESTIONS & ANSWERS

PRIMARY NOTES, SCHEMES OF WORK AND EXAMINATIONS