Income and Expenditure (Junior Cert Home Economics): Revision Notes
📚 Revision Notes
Income and Expenditure
1. Income
Income is the money you receive regularly (weekly, fortnightly, or monthly).
- Wages:
- Paid weekly. Amount depends on hours worked (e.g. overtime increases pay).
- Salaries:
- Paid monthly or fortnightly. Fixed amount.
- Social welfare payments:
- Payments for those who cannot work or earn an income.
- Jobseeker's Allowance: For unemployed people (e.g. €112.70 per week for ages 18–24).
- Disability Allowance: For those unable to work due to illness or disability (€203 per week).
Key Terms:
- Gross income: Total pay before deductions.
- Net income: Pay after deductions (also called "take-home pay").
2. Deductions
Deductions are amounts taken out of wages or salaries.
Statutory deductions (compulsory):
These must be paid:
- Income Tax (PAYE): Tax on earnings to fund public services (schools, hospitals).
- PRSI: Pay Related Social Insurance. Funds social benefits (e.g. maternity leave, pensions).
- USC: Universal Social Charge – introduced to help the economy recover.
- Pension payments: Contributions towards retirement savings (compulsory in some jobs).
Voluntary deductions (optional):
These are paid by choice:
- Health insurance (e.g. VHI, Irish Life).
- Private pensions (e.g. Zurich).
- Savings plans (e.g. Standard Life).
- Union membership fees (e.g. TUI).
3. Expenses
Expenses are the costs you must pay.
Types of expenses:
- Essential expenses (needs): Must be paid for. Examples:
- Mortgage/rent, food, electricity, school books.
- Non-essential expenses (wants): Desired but not necessary. Examples:
- Family holidays, meals out, branded clothes.
infoNote
💡 The same item can be a need for one person and a want for another! For example, a car is a need for someone in a rural area with no buses but a want in a city with good transport.
4. Common Family Expenses
Here's a list of typical family expenses:
- Housing: Rent/mortgage.
- Groceries: Food, cleaning products.
- Household expenses: Electricity, heating, water, waste disposal.
- Education/Childcare: School books, crèche fees.
- Travel: Car repayments, insurance, bus fares, bicycle costs.
- Clothing: Winter coat, shoes.
- Medical: Doctor, dentist, medicines, health insurance.
- Savings: Credit union, bank savings.
- Entertainment: Internet, TV, going out, holidays.