Househould Budgets (Junior Cert Home Economics): Revision Notes
📚 Revision Notes
Household Budgets
Household Budgets
Budgeting is planning how you spend money so that all essential expenses (needs) are paid for before non-essential expenses (wants). Budgets help you avoid overspending and save for the future.
- Budgets can be weekly, monthly, or yearly.
- A household budget depends on:
- The number of people in the family.
- The income coming in.
- The cost of rent/mortgage payments.
Advantages of Budgeting
✔ Reduces stress – essentials (like rent and bills) are paid.
✔ Helps avoid overspending on non-essentials.
✔ Shows where money is wasted and where savings can be made.
✔ Prepares for large bills and seasonal costs (e.g. Christmas presents).
✔ Sets a good example for children.
Dividing the Budget
The budget divides income into different categories:
- Housing: 25%
- Groceries: 25%
- Household expenses: 15%
- Education/childcare: 10%
- Travel: 10%
- Clothing: 5%
- Medical: 5%
- Savings: 5%
- Entertainment/leisure: 5%
Sample Household Budget
Below is an example of a two-income family with one child (aged 2).
| Expense | Percentage | Amount per month |
|---|---|---|
| Housing | 25% | €844.13 |
| Groceries | 25% | €844.13 |
| Household expenses | 15% | €506.48 |
| Education/childcare | 10% | €337.65 |
| Travel | 10% | €337.65 |
| Clothing | 5% | €168.83 |
| Medical | 5% | €168.83 |
| Savings | 5% | €168.83 |
| Entertainment/leisure | 5% | €168.83 |
| Total | 100% | €3376.54 |
The Five-Step Money Management System
Money management is about using money wisely to achieve your goals.
- Set a goal:
- Example: Save for a family holiday or pay household bills on time.
- Identify resources:
- Resources = money, time, knowledge, or skills.
- Plan:
- List all income and expenses.
- Allocate money to each expense category.
- Prioritise essential expenses first, then non-essentials.
- Action:
- Put your budget plan into action!
- Evaluate:
- Did your budget work?
- Were you able to pay for all essentials and save for any goals?
The Money Advice & Budgeting Service (MABS)
- MABS is a free government-funded service.
- It helps families and individuals manage their money and debts.
- Offers advice on budgeting and avoids debt problems in the future. 🔗 Visit MABS: www.mabs.ie
