managing home finances

• Gross income


  The total amount paid to a worker before deductions/tax
• Net income


  The amount paid to a worker after deductions/tax and is sometimes called take-home pay
• Compulsory deductions from gross income

  • Income tax/Pay As You Earn (PAYE)
  • Pay Related Social Insurance (PRSI)
  • Universal Social Charge (USC)
  • Pension payments
• Voluntary deductions from gross income

  • Health insurance
  • Private pension
  • Savings plans
  • Union membership fees
• Essential expenses


  Items that must be paid for, e.g. mortgage or rent payments; food; utility bills, e.g. electricity; school books and uniforms. These are sometimes called needs.
• Non-essential expenses


  Items that are not essential but are desired, e.g. a family holiday, meals out and branded clothing. These are sometimes called wants.
• Common family expenses


  • Housing, e.g. rent/mortgage payments
  • Groceries, e.g. food, cleaning products
  • Household expenses, e.g. electricity, heating fuel, water, waste disposal, property tax
  • Education/childcare, e.g. books, crèche fees
  • Travel, e.g. car repayments, tax, insurance, fuel, service costs, bus/train/tram fares, cost of a bicycle
  • Clothing, e.g. a winter coat, shoes
  • Medical, e.g. doctor, dentist, medications, health insurance
  • Savings, e.g. credit union, bank or An Post savings accounts
  • Entertainment, e.g. internet, television licence, going out, holidays
• Budgeting


  Planning what you spend carefully so that all essential expenses are paid for before any non-essentials are purchased
• Advantages of budgeting


  • Reduces stress, as essentials (e.g. rent and bills) are paid for
  • Less chance of overspending on non-essential items so less debt
  • Allows you see where money is being wasted and where savings can be made
  • Can help prepare for large bills and seasonal spending, e.g. Christmas presents
  • Sets a good example for children
• Five-step money management system

  • Set a goal
  • Identify resources
  • Plan
  • Action
  • Evaluate
• MABS


  A free service funded by the government to help families and individuals who are experiencing money problems. MABS has 60 offices nationwide staffed by experienced money advisers who work with people to manage and gradually pay off their debts. The service also helps people to learn effective budgeting skills so that debts are not built up again.
• Saving


  Putting money aside until you have enough
• Buying on credit


  Borrowing money and paying it back later
• Where to save


  • Credit union
  • Bank or building society
  • Post office
• Where to get credit

  • Credit cards
  • Bank/building society/credit union loans
  • Bank overdraft
  • Hire purchase
• Home filing system


  Should contain all the family's important paperwork, e.g. passports, bills, receipts, school reports, guarantees and bank statements. Records should be kept either on a computer or in a physical file.
• Advantages of a home filing system

  • Bills are not mislaid or forgotten about and can therefore be paid on time
  • Time is not wasted searching for paperwork, since it is all in one place
  • Guarantees and receipts are at hand should you have a problem with goods purchased
  • Past and present bills can be compared
  • School progress can be monitored from year to year