Revision by Topic

Section 1: The Business of Living 

 

The management of personal finance is an important lifeskill which must be practised by everyone, young and old.

The topics dealt with in this section include: personal income and expenditure, consumer education, budgeting, financial services for the individual, borrowing and insurance. The development of communications skills, both oral and written, and the skill of efficient record-keeping (and its role in decislon-making) are also central to the business of living.

Topic 1. Income

 

Learn how to:

• complete payslips

Understand:

• sources of income
• benefit-in-kind
• statutory deductions: PAYE and PRSI
• voluntary deductions
• gross pay
• net pay

Tip: In most questions where you have to work something out, you will lose marks if you do not write out the sum you did, even if you work it out with a calculator.

Topic 2. Expenditure

 

Learn how to:

• calculate a bill, e.g. from the Bord Gáis Energy.

Understand:

• current expenditure
• capital expenditure
• irregular expenditure
• discretionary expenditure
• opportunity cost

Tip: Many questions may ask you to do more than one thing. Do them in the order asked

Click here to see a sample Bord Gáis Energy Bill. 

Topic 3. Household Budget

Learn how to:

• complete a household budget
• prepare a budget comparison statement

Understand:

• surplus
• deficit

Tip: When doing a budget question, pay attention to the following points:

1. Make sure all information given is used in your answer.
2. Where a figure changes from month to month, be sure to enter the changes correctly, e.g. a 'bonus in November' means in November only.
3. '€660 per year, payable monthly' means 1/12^th, i.e. (660 ÷ 12 = 55) every month.
4. Keep your numbers neat and aligned 

Check out this powerpoint for reminder on how to get started on the Household Budget Question. 

Feeling confident? Try this interactive household budget question for the Power Family. 

 

Topic 4. Household Accounts

 

Learn how to:

• complete a cash account
• complete an analysed cash account

Tip: Debit side = Receipts = Money in
        Credit side = Payments = Money out

Topic 5. Communication

 

Learn how to:

• write a business letter
• write a report
• write a memo

Understand:

• visual communication
• written communication
• oral communication

Tip: In the exam you are often asked to write a letter of complaint 

To see a template letter of complaint, click here

Download Communications Mindmap 

Topic 6. The Consumer

Learn how to:

• calculate a unit price
• identify well-known symbols of quality and safety
• identify illegal notices
• how to complain 

Understand:

• consumer
• caveat emptor
• impulse purchasing
• false economy
• deposit
• bar code
• loss leader
• price war
• symbols
• Sale of Goods and Supply of Services Act (1980)
• Third Party Agencies
• Proof of Purchase

Tip: If you buy faulty goods, you do not have to accept a credit note.

Are you a smart shopper? Try this online game by the National Consumer Agency.

Topic 7. Money

Understand:

• forms of money (barter, legal tender, cheques, credit and debit cards, traveller's cheques, ATM)

See if you know how to use an ATM. Try this online interactive guide here.

Do you know how to write a cheque? Practice filling them in here.