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Jack and Jane O’Brien have two children ages five and three, Jack works five days a week and Jane stays at home to look after the children - Leaving Cert Home Economics - Question 3 - 2006
Question 3
Jack and Jane O’Brien have two children ages five and three, Jack works five days a week and Jane stays at home to look after the children. They currently live in a ... show full transcript
Worked Solution & Example Answer:Jack and Jane O’Brien have two children ages five and three, Jack works five days a week and Jane stays at home to look after the children - Leaving Cert Home Economics - Question 3 - 2006
Step 1
Explain why it is important for the O’Brien family to set up a budget.
Answer
Importance of Setting Up a Budget
Establishing a budget is crucial for the O'Brien family for several reasons:
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Financial Security: A well-structured budget helps the family manage their expenses, ensuring they can cover essential costs and reducing financial stress.
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Planning for Savings: By outlining their income and expenditures, they can effectively plan for future savings, such as their goal of buying a home.
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Avoiding Overspending: A budget acts as a spending guideline, helping the family avoid unnecessary expenses that could hinder their savings.
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Skill Development: Creating and maintaining a budget can develop valuable money management skills that will benefit the family in the long term.
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Adapting to Changes: Budgets can be adjusted based on changes in family circumstances or priorities, providing flexibility in their financial planning.
Step 2
List the main sources of expenditure for this family.
Answer
- Rent for accommodation: As they are currently renting a house.
- Food: Essential grocery expenses for the family.
- Savings: Setting aside money for future needs, including a home.
- Clothing: Regular purchases for the family’s clothing needs.
- Transport: Costs related to public transportation and travel.
Step 3
Discuss three factors that Jack and Jane O’Brien should consider when choosing a home of their own.
Answer
Factors to Consider When Choosing a Home
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Size of Household: The family needs adequate space for themselves and their children, taking into account potential future family growth and space required for activities.
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Location: Proximity to work, schools, and public transport is essential for convenience and accessibility. A good location lends itself to a suitable living environment and potential future value.
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Affordability: Assessing the total cost of the home, including mortgage repayments and additional expenses such as maintenance and utilities, to ensure it fits within their budget.
Step 4
Local authorities provide a range of services/schemes in relation to the provision of housing. Name and describe one service/scheme provided.
Answer
Service/Scheme: Tenant Purchase Scheme
The Tenant Purchase Scheme allows families living in local authority housing the opportunity to purchase their home after a specified period of tenancy. This scheme supports families in transitioning from renting to owning, often at favorable financial terms. It enables individuals to invest in their property and build equity over time.