"Managing money: income, expenses and budgeting"

Classify each item in Nora's piggy bank money as income or expenditure, and within expenditure, as fixed (the same every month) or variable (changes): (a) weekly pocket money; (b) monthly bus pass; (c) a comic; (d) birthday money from her grandparents; (e) chess club membership fee; (f) popcorn at the cinema.

The figure shows Lucía's income and expenditure over the four weeks of a month: each green bar shows her income for that week and each amber bar shows her expenditure.

1. a) Read the total income and total expenditure for the month from the graph, and calculate how much Lucía saved.
2. b) In week $3$, she earned more than usual (she was paid for babysitting her cousin). Explain what would happen to her savings if Lucía spent that extra income as soon as she received it.

Define what a budget is and name its three basic parts (expected income, expected expenses, the difference). Explain why a budget is made BEFORE the month and not after, and what is done with it at the end of the month.

A crêpe stall has these movements on the day of the fair: buying ingredients $45\ \text{€}$, selling crêpes $130\ \text{€}$, stall permit $15\ \text{€}$, initial float put in and taken back $20\ \text{€}$. Calculate the day's result (income minus expenses) and explain why the initial float counts neither as an expense nor as income.

The stall at the fair will sell juices at $2\ \text{€}$ a glass. The projected expenses are: fruit and glasses, $0,80\ \text{€}$ per glass, plus $20\ \text{€}$ in fixed costs for the permit and posters.

1. a) Calculate how many glasses they need to sell to break even (cover all costs).
2. b) If they expect $60$ customers, calculate the projected profit and explain what would happen if only $15$ came.

Explain what saving is and the rule 'pay yourself first' (setting the savings aside when you receive your pocket money, not at the end of the month). With pocket money of $25\ \text{€}$ a week and a saving goal of $20\ \%$, calculate how much you set aside each week and how much you will have in $10$ weeks.

A simple budgeting rule splits income as follows: $50\ \%$ for needs, $30\ \%$ for wants, and $20\ \%$ for savings. Apply it to pocket money of $60\ \text{€}$ per month and calculate each portion. Then classify these real monthly expenses into the three categories and state whether the month aligns with the rule: bus pass $20\ \text{€}$, cinema and going out $15\ \text{€}$, school supplies $8\ \text{€}$, headphones (want) $10\ \text{€}$, savings in the piggy bank $7\ \text{€}$.

Bruno receives $50\ \text{€}$ a month. Set up his March budget with these items: transport $15\ \text{€}$, eating out $12\ \text{€}$, leisure $10\ \text{€}$, saving for a scooter $8\ \text{€}$ and unexpected expenses $5\ \text{€}$.

1. a) Check that the budget balances and explain what a 'zero-sum budget' means (every euro has an assigned mission).
2. b) The scooter costs $120\ \text{€}$ and he already has $40\ \text{€}$ saved. Calculate how many months he has left at the current pace and propose two tweaks to the budget to get it two months earlier, stating what each one sacrifices.

The school market team made its budget and reality turned out like this:

1. a) Calculate the deviation of each item and the expected profit versus the actual one.
2. b) Analyse the two main causes of the deviation and write two decisions for the next budget (estimating prices with a real delivery note, a pessimistic sales cushion).

The market team budgeted $80\ \text{€}$ in expenses and ended up spending $95\ \text{€}$: the price of fruit went up ($+10\ \text{€}$) and they had to reprint posters with the corrected date ($+5\ \text{€}$).

1. a) Calculate the total budget variance in euros and as a percentage, and break it down by cause.
2. b) Explain what two decisions you would make for the next market: one regarding how to estimate prices and another regarding a financial buffer for contingencies (how much and why).

The school's charity market handles $800\ \text{€}$ in cash in a single day. Design the till control system: how much initial float and who signs for it, how each sale is noted (or each withdrawal of excess cash), who looks after the money in shifts, how the till is closed between two people, and what is done if the count doesn't match the sales noted. Explain why these controls also protect whoever handles the money.