Household Finances Flashcards Preview

Leaving Cert Home Ec - > Household Finances > Flashcards

Flashcards in Household Finances Deck (37)
Loading flashcards...
1
Q

Role of the household as a financial unit within the family

A

Contribute to country’s economy (taxes maintain state services)
Spend wages on goods and services generating wealth and employment
Mortgages and loans contribute to profits of financial institutions eg banks
Self sufficiency relieves pressure on state
Money management skills passed onto children - reduces reliance on social welfare in future

2
Q

Social factors affecting income

A

Age (older= more qualifications, moving up pay scale)
Gender
Socio economic status
Culture (salariales differ from country to country, women working)

3
Q

Sources of household income

A
Wage 
Salary
Social welfare payments
Pensions
Rental property
Savings and investments
4
Q

Difference between wage and salary

A

Wage is paid daily/weekly for work done

Salary is paid monthly and is fixed

5
Q

Gross income

A

Before any deductions

6
Q

Net income

A

Take home pay

7
Q

2 types of deductions from pay

A

Compulsory

Voluntary

8
Q

Examples of compulsory deductions

A

PAYE
PRSI
USC

9
Q

Examples of voluntary deductions

A
Private health insurance eg VHI
Tarde union subscription eg SIPTU
Loan repayments eg car
Savings
Pension fund
10
Q

What is an occupational pension

A

Set up by employers in large companies,

Both employee and employee contribute

11
Q

What does PAYE stand for

A

Pay as you earn

12
Q

What is PAYE used for

A

To run country eg state services, infrastructure

13
Q

What are tax credits

A

Money taken off tax to be paid

Depend on circumstances eg marital status

14
Q

What does PRSI stand for

A

Pay related social insurance

15
Q

What is PRSI used for

A

Pay for social welfare payments

16
Q

What does USC stand for

A

Universal social charge

17
Q

What is USC used for

A

State finances and debt repayments

18
Q

Advantages of pensions

A

Compensate for reductions in income on retirement

Protection for pension holders’ dependents in even of death

19
Q

What is p60

A

Document containing details of pay and tax, received each year from the employer

20
Q

What is P45

A

Document given to a person leaving their place of work.

It includes details of pay and tax and is passed on to the new employer to help work out tax

21
Q

3 types of social welfare payments

A

Social insurance payments
Social assistance payments
Universal payments

22
Q

Social insurance payments are paid to those who

A

Paid 39 weeks of PRSI

23
Q

Examples of social insurance payments

A

State pension
Widow/widower payment
Jobseekers benefit
Maternity and paternity benefit

24
Q

Jobseekers benefit given for how many months before job seekers allowance

A

6-9monghs

25
Q

Length of maternity leave

A

26 weeks

26
Q

Length of paternity leave

A

2 weeks

27
Q

Examples of social assistance payments

A
State pension
Widow/widowers pension
Job seekers benefit
Family income supplement
Supplementary Welfare Allowance
One parent family payment
28
Q

Examples of universal payments

A

Child benefit

29
Q

When are social assistance payments made

A

Means tested

When insufficient PRSI payments are paid

30
Q

What’s supplementary welfare allowance

A

For people waiting on social welfare

31
Q

What’s a universal payment

A

Paid to all regardless of PRSI payments

32
Q

Who gets Child benefit

A

Parents/ guardians of u16, u18 in full time education or with disability

33
Q

Two types of household expenditure

A

Discretionary

Essential

34
Q

Examples of essential expenditure

A

Fixed eg mortgage, insurance

Irregular eg food, educational needs, clothing

35
Q

Examples of discretionary expenditure

A

Holidays
Leisure
Entertainment

36
Q

Factors that would vary household expenditure

A

Socio economic status
Fami,y size/stage
Location (urban=higher rent … rural=higher travel costs)
Beliefs/values eg private education

37
Q

Ways to reduce household expenditure

A
Discount stored eg Aldi, Lidl
Own brand
Avail of special offers
Compare costs of various utility providers eg sky vs eir
Only turn on appliances when full
Buy second hand clothes
Walk/ cycle / public transport