STATUTORY DEDUCTIONS Statutory deductions are payments that you

STATUTORY DEDUCTIONS Statutory deductions are payments that you MUST make once you are earning a certain amount of money. You have no choice in this and this deductions are made before you even get your pay. These include: • National Insurance- payments go towards state benefits and services, including the NHS, State Pension, unemployment benefits, sickness and disability allowances. • Income Tax- used to help provide funding for public services such as the NHS, education and the welfare system, as well as investment in public projects, such as roads, rail and housing. • Student Loan- once you earn over £ 25, 000 a year you have to start to pay this back NON-STATUTORY DEDUCTIONS Non-statutory deductions are payments that you choose to make once. You choose to make these payments and these deductions are also made before you get your pay. These include: • Private Pension Payments • Union membership

4. 1 LESSON OBJECTIVES Know how to budget LESSON OUTCOMES- YOU WILL… • Produce, from given information, a realistic budget for living costs for one week or one month

BUDGETING Budgeting is an extremely important skill you need to learn. When you get paid or receive money, you need to calculate what you NEED to spend first (rent, food, bills) then work out how much you have left to spend on things you WANT! Bud geti ng i s th to sp e proce s end This your s of cre mon ating Crea spendi a pla ey. ng p ting n lan i deci this s calle enou de in a spend da i ng p gh m dvan l an a budg oney ce wh et. llow ethe t o s d do o r y o r wo the th you wi ou to l i uld like ngs you l have to d need o. to Imagine you have just moved into your own home. Make a list of things you would NEED to spend money on, then a list of things you may want to buy in an average month. Think about: Eating Rent Shopping Travel Socialising Mobile phone