LWEO

chapter 1

chapter 1

Budgeting for everybody

Youngsters often receive money from different sources, for which they sometimes have to do something in return, by means of a sideline, and which they sometimes get for free, like pocket money. When spending that money, they need to make choices. Drawing up a good budget, in which the expected income and the expected expenses are placed side by side, can help in this selection process. In a budget, different kinds of expenses are distinguished: household expenses, fixed charges and reserve expenses. After a budget has been drawn up, it becomes clear whether a surplus of money or a deficit can be expected over the coming period. In case of a deficit, measures must be taken, such as cutting expenses, providing extra income or borrowing money. If any money is left, this can be saved for potential future expenses.

The government also presents a budget every year. The national budget is always offered to Parliament on Budget Day, together with the Budget Memorandum. In the national budget the amounts are specified which the government expects to receive in the next year, such as taxes, national insurance contributions and other revenues. In addition, the expected expenditure is stated, to be spent on things like new roads, education or other matters.

links
How much clothing money? (www.nibud.nl)
Budget line (video 2 min.)
Budget Day (www.rijksoverheid.nl)

glossary

Glossary chapter 1


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extra exercises

Extra exercises (Word)