Cash budgets

• Why is a cash budget helpful?

  It helps determine savings or spending needs
• If you earn £50 and spend £30, how much is left in your cash budget?

  £20
• What are cash outflows in a cash budget?

  Expenses such as snacks and entertainment
• What are the four key components of a cash budget?

  Cash inflows, cash outflows, net cash flow, cash balance
• How does cash budgeting help in managing money?

  It helps track income and expenses
• What is the purpose of cash budgeting?

  To help manage your money better
• How is net cash flow calculated?

  Net cash flow is inflows minus outflows
• What does a positive net cash flow indicate?

  Inflows are greater than outflows
• What are cash inflows in a cash budget?

  Money coming in, like pocket money
• What does a cash budget show?

  Expected income and expenses
• What are the key components of cash budgeting?

  • Income: Money coming in
  • Expenses: Money going out
  • Savings: Amount set aside for future purchases
• What are the components of a cash budget?

  • Cash inflows: Money coming in
  • Cash outflows: Expenses going out
  • Net cash flow: Inflows minus outflows
  • Cash balance: Money available after transactions
• Why is a cash budget important for spending?

  It helps ensure you don't run out of money
• What is the cash balance in a cash budget?

  The amount of money available after inflows and outflows
• If you receive £50 in pocket money and spend £30 on snacks, what is your net cash flow?

  £20
• If your cash inflows are £50 and cash outflows are £30, how does your cash balance change?

  It increases by £20
• What does a cash budget show regarding money?

  It shows how much money you get and spend
• How does a cash budget assist in financial planning?

  It shows if you can save or need to cut spending
• What is a cash budget?

  A plan for handling money each month
• What is cash budgeting for businesses?

  A roadmap to manage their money
• What can you avoid by using cash budgeting?

  Running out of cash
• How is cash budgeting similar to planning a school timetable?

  Both require knowing when resources are available
• How does saving a small amount each week help you?

  It allows you to afford desired items sooner
• What does leftover cash indicate in a cash budget?

  You have more coming in than going out
• What is the purpose of a cash budget?

  To help you be a super money manager
• Why is cash budgeting important for businesses?

  It helps ensure enough cash for expenses
• What is a cash budget compared to?

  Planning how to spend pocket money
• How can a cash budget help you save for bigger items?

  By managing your spending effectively
• What are the important parts of a cash budget?

  • Cash coming in (allowance)
  • Cash going out (expenses)
  • Leftover cash (savings)
  • Total amount of money available
• If you receive £5 and spend £2, how much do you have left?

  £3
• What are the benefits of cash budgeting for businesses?

  • Avoid running out of money
  • Plan for investments
  • Make better financial decisions