Budgets (SQA National 5 Applications of Mathematics): Revision Note

Budgets

What is a budget?

• A budget is a way to plan all incomings (money coming in) and outgoings (money going out, i.e. money spent)

• You can use a budget to work out how much you take home each week or month after paying bills

• You can use a budget to work out how long it will take you to save up a certain amount of money

How can I use a budget to balance incomings and outgoings?

• You add up all the money you receive

  • This could come from:

    • Your net pay

    • Bonuses

    • Benefits

• You add up all the money you need to pay out

  • This could pay for:

    • Bills/expenses

    • Entertainment

    • Food

• Subtract the total amount you pay out from the amount you receive

• The difference is the amount you have left over

  • This could be used for savings

How can I find out how long it takes to save a certain amount of money?

• You might be asked to find out how long it takes someone to save money to buy an item

• Divide the required amount by the amount saved each week or month

• Round up to the next whole number if you get a decimal