enterprise trb section 2 strand 1

Enterprise Teacher’s Resource Book: Strand 1

60 Section 2: Ideas and Solutions

UNIT

2

Other relevant answers accepted for Question 7 here.

Textbook SolutionsWRITE IT!WRITE IT! 8

1. Wage: €1,500; Total: €6,000

2. Wage: €1,200; Total: €4,800

3. Total income each week:

Week 1: €2,700

Week 2: €3,200

Week 3: €2,700

Week 4: €2,700

4. They received a gift.

5. €11,300

WRITE IT!WRITE IT! Page 21

1. €100

2. €400

3. Week 1: €150

Week 2: €1,150

Week 3: €140

Week 4: €110

4. €1,550

5. Clair and Larry went on holiday.

6. The holiday cost €1,000.

7. Do not go on holiday.


1. Jan: €2,150; Feb: €2,150; Mar: €3,150; Total: €7,450.

2. Jan: €660; Feb: €660; Mar: €660; Total: €1,980.

3. Jan: €2,950; Feb: €9,750; Mar: €3,950.

4. In February the Kelly household won €6,800 in the lotto. In March, Mr Kelly received a bonus of €1,000.

5. €16,650

Recording planned income and expenditure

1. Income

2. Expenditure

3. Type 1: Household Budget

4. Type 2: Revised Household Budget

5. Type 3: Comparison Statement

Top Topics

Enterprise TRB Section 2 Strand 1.indd 60Enterprise TRB Section 2 Strand 1.indd 60 26/07/2021 13:1626/07/2021 13:16

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WRITE IT!WRITE IT! 4

1. Jan: €1,265; Feb: €4,335; Mar: €899.

2. €6,499

3. Jan: €1,105; Feb: €780; Mar: €1,060.

4. Total: €2,945

5. Jan: €400; Feb: €100; Mar: €350.

6. Total: €850

7. Light and heat is paid every two months.

8. The weather gets warmer in March compared to January.

Calculations: Page 24

Percentage of fi xed expenditure: 63.13%Percentage of irregular expenditure: 28.61%Percentage of discretionary spending expenditure: 8.26%


1. Jan: €180; Feb: €4,535; Mar: €1,641

2. Total: €6,356

3. February. The Kelly’s income of €9,750 was larger due to thelotto win than their expenditure of €5,215.

4. Jan: €180. Expenditure was larger due to high discretionaryspending of €300 on gifts.

Encourage students to be specifi c when answering questions like 3 and 4 on page 25.


1. Jan: €680; Feb: €5,215; Mar: €6,856

2. Total: €6,856

3. €6,856

4. March with €6,856

5. January with €680

6. Save. Other relevant answers accepted for Question 6.


Amount Surplus or defi cit? Recommendation(€100) Defi cit Reduce discretionary expenditure.(€12,000) Defi cit Look for a cheaper alternative.€2,000 Surplus Save.€400 Surplus Put towards a month when there is a defi cit.

Other relevant answers accepted for recommendations. Encourage students to be specifi c instead of writing just ‘reduce spending’ or ‘increase income’.


1. €500

2. A budget surplus. Their total income of €28,220 was greater than their total expenditure of €14,704.

3. Save: The Kellys could save with a fi nancial institution. Invest: They could invest in a company (buy shares).

Other relevant answers accepted here.

UNIT 2 Recording Planned Income and Expenditure


EnterpriseEnterprise Teacher’s Resource Book: Strand 1


Be Prepared – Examination

Section A

1. Individual Source of income

Student Part-time work

Employed person Wage/salary

Unemployed person Jobseeker’s Benefi t

Retired person Pension

2. Source of Income Regular Irregular

Wages/salary ✓

Overtime ✓

Pocket money ✓

Child benefi t ✓

Christmas bonus ✓

Lotto win ✓

Grant ✓

Interest on savings ✓

Communion money ✓

Commission ✓

Pension ✓

Jobseeker’s Benefi t ✓

3. Fixed Expenditure Irregular Expenditure Discretionary SpendingMortgage Groceries Holidays

Rent Light and heat Gifts

Car insurance Diesel Entertainment costs

Car tax Telephone bills Concert tickets

4. Regular IrregularEmployed Wages Bonus

Retired Pension Lotto win

5. Sept Oct Nov TotalNet cash 520 (300) 450 670

Opening cash 375 895 595 375

Closing cash 895 595 1,045 1,045

6. January February March TotalNet cash 300 220 450 670

Opening cash 345 645 865 345

Closing cash 645 865 1,315 1,315



Some of these answers could be debated in class.


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7. (i) (€500). Defi cit.

(ii) Other relevant answers accepted here. Encourage students to be specifi c and refer to question asked.

Reduce expenditure: Joan should reduce her expenditure, for example by discretionary spending.

Increase income: Joan could increase her income by working overtime.

8. (i) Defi cit. The household can establish which months they can expect a defi cit and prepare a plan to deal with it, for example by taking out a bank overdraft.


(ii) Surplus. The household can establish which months they can expect a surplus and plan ways to use the money wisely.

9. Fixed expenditure Irregular expenditure Discretionary expenditureHousing Transport Clothing and footwear

10. Step January€

February€

March€

Total€

1 A. Total Income 2,850 9,700 9,950 22,5002 B. Total Expenditure 2,820 5,215 2,309 10,3443 C. Net Cash (A – B) 30 4,485 7,641 12,1564 D. Opening Cash (beginning) 500 530 5,015 500

5 E. Closing Cash (C + D) 530 5,015 12,656 12,656

11. (i) Item Cost per month €

Fixed Irregular Discretionary

Rent 1,100 ✓Broadband 75 ✓Electricity 20 ✓Clothes 100 ✓Holiday fund 20 ✓Mobile phone 25 ✓Groceries 100 ✓Car insurance 120 ✓Diesel 200 ✓Car loan 300 ✓

(ii) Planned Expenditure €

Fixed 1,400Irregular 540Discretionary 120Total Planned Expenditure 2,060

(iii)

Planned Expenditure


Amou

nt €

1,400

540

1200

(iv) Financial institutions such as a bank, credit union or post offi ce. This question is setting up Unit 4.






12. Part 1 – Income

Mooney HOUSEHOLD JUL AUG SEP OCT TOTALPLANNED INCOME € € € € €

Jim Mooney – salary 2,400 2,900 2,400 2,400 10,100Carol Mooney – salary 1,950 1,950 1,950 2,200 8,050Child benefi t 450 450 450 450 1,800A. TOTAL INCOME 4,800 5,300 4,800 5,050 19,950

Part 2 – Expenditure

PLANNED EXPENDITUREFixedHouse mortgage 750 850 850 850 3,300House insurance 50 50 50 50 200Health insurance 150 150 175 175 650(i) Subtotal 950 1,050 1,075 1,075 4,150IrregularHousehold expenses 1,200 700 1,200 1,200 4,300Transport costs 260 260 260 260 1,040Education costs 800 850 650 2,300Light and heat 100 160 260Telephone costs 215 90 230 90 625(ii) Subtotal 2,475 2,000 2,340 1,710 8,525DiscretionaryBirthdays 500 700 1,200Entertainment 550 550 800 550 2,450Holiday 800 2,200 3,000(iii) Subtotal 1,350 2,750 1,300 1,250 6,650B. Total Expenditure (i) + ( ii) + (iii) 4,775 5,800 4,715 4,035 19,325

Part 3 – Find Closing Cash

Net Cash (A – B) 25 (500) 85 1,015 625Opening Cash 495 520 20 105 495Closing Cash 520 20 105 1,120 1,120

(i) 4,150 ÷ 19,325 × 100 ÷ 1 = 21.47%

(ii) 8,525 ÷ 19,325 × 100 ÷ 1 = 44.11%

(iii) 3,000 ÷ 19,325 × 100 ÷ 1 = 15.52%

Encourage students to show their workings, put in a % sign and place answer close to two decimal places.

Activity Book Solutions1 1 Income

1. Money and/or something of value that you receive. It may be earned, e.g. through paid employment, or unearned income, e.g. from a state benefi t.

2. Source of income Source of incomeA Pocket money F Profi tsB Presents/gifts G Jobseeker’s Allowance C Salary H PensionD Grants/scholarships I WagesE Salary J Salary


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3. (i) It is certain that the household/individual will receive this income. It is usually paid at agreed times, e.g. every two weeks.

(ii) It is not certain that the household/individual will receive this income as there may be, for example, conditions to be met before it is paid.

4. (i) Types of income Regular IrregularLotto win ✓Christmas bonus ✓Child benefi t ✓Inheritance ✓Pocket money ✓Tax refund from the government ✓Pension ✓Dividend ✓Birthday ✓Overtime ✓

(ii) They were charged too much tax. For example, they may have paid too much PAYE.

(iii) A dividend is a form of income. A dividend is a distribution of profi ts by a corporation to its shareholders. When a corporation earns a profi t or surplus, it is able to pay a proportion of the profi t as a dividend to shareholders.

5. Individual Regular Irregular1. Student Wages Grant2. Employed person Salary Christmas bonus3. Unemployed person Jobseeker’s Allowance Lotto win 4. Retired person Pension Dividend 5. Business owner (entrepreneur) Profi ts Dividend

6. Some students might struggle to answer this. If you know that a student will struggle, encourage them to make it up.

7. (i) Planned Income of Kieran and LisaPlanned Income Jan

€

Feb€

Mar€

Apr€

Total€

Kieran – wage 50 50 50 50 200Lisa – wage 40 40 40 40 160Dividend 300 300Total Planned Income 90 390 90 90 660

(ii) Wages are paid weekly depending on hours worked. For example, Lisa works 22 hours one week and is paid for the 22 hours.

(iii) Kieran and Lisa could work overtime to increase their income. .

Other relevant answers accepted here. Encourage students to reference Kieran and Lisa.

8. (i) Planned Income of MellaPlanned Income Week 1

€

Week 2€

Week 3€

Week 4€

Total€

Mella – salary 220 220 220 220 880Child benefi t 120 120 120 120 480Renting a room to a student 130 130 130 130 520Total Planned Income 470 470 470 470 1,880

(ii) Child benefi t is a payment to parents or guardians of each child under 16 or under 18 if in full-time education.






(iii) Total income of Mella

WeeksWeek 1 Week 2 Week 3 Week 4

Plan

ned

Inco

me

470

0

9. (i) Planned Income of Suzanne and EamonPlanned Income Sept

€

Oct€

Nov€

Dec€

Total€

Suzanne – salary 333 333 333 333 1,332Eamon – wage 400 400 400 450 1,650Child benefi t 300 300 300 300 1,200Total Planned Income 1,033 1,033 1,033 1,083 4,182

(ii) €1,033 Make sure to remind students to use the € sign.

(iii) €4,182

(iv) A wage is paid based on the number of hours worked, whereas a salary is a set monthly payment.

(v) Total planned income of Suzanne and Eamon

WeeksSept Oct Nov Dec

Plan

ned

Inco

me

1,0831,033

0

10. (i) Planned Income of MellaPlanned Income May

€

Jun€

Jul€

Aug€

Total€

State pension 250 250 250 250 1,000Private pension 300 300 300 300 1,200Dividend 640 640Birthday 100 100Total Planned Income 1,190 550 550 650 2,940

(ii) €300

(iii) €1,200

(iv) A state pension is provided by the government to the retired person once they reach a certain age. A private pension is one which the individual pays into over a period of time and claims it once they retire.

2 2 Expenditure

11. (i) Expenditure is the amount of money spent during a particular period of time, e.g. groceries.

(ii) Fixed expenditure is money spent at the same time each week, month or year, e.g. rent.

(iii) Irregular expenditure is money spent at regular times. The amount may vary, e.g. phone bills.

(iv) Discretionary expenditure is money spent on things you want rather than need, e.g. a holiday.


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12. (i) Types of expenditure Fixed Irregular DiscretionaryMortgage ✓Cinema tickets ✓Holiday ✓Electricity ✓Rent ✓New clothes ✓Car insurance ✓

House insurance ✓

Car tax ✓

Netfl ix ✓

(ii) Car tax is a tax which must be paid to the local council if the vehicle is being driven around a public place. Car insurance is a type of insurance required by law. Depending on the type of cover, the insurance will protect the individual from high costs if an accident occurs.

(iii) Need: Mortgage Need: Rent Want: Netfl ixWant: New clothes

13. Some students might struggle to answer this. If you know that a student will struggle, encourage them to make it up.

14. (i) Planned Expenditure of Kieran and LisaPlanned Expenditure Mar

€

Apr€

May€

Jun€

Total€

FixedMortgage 230 230 230 230 9201. Subtotal 230 230 230 230 920IrregularGroceries 50 100 96 26 272Electricity 14 14 10 26 64Gas 5 15 13 5 382. Subtotal 59 129 119 57 374DiscretionaryCinema tickets 32 32Takeaway 30 20 503. Subtotal 32 30 20 82Total Planned Expenditure 321 389 349 307 1,376

(ii) A mortgage is a long-term loan taken out to buy a house or apartment.

(iii) Total Expenditure of Kieran and Lisa

Planned Expenditure


Amou

nt (

€)

920

374

82





15. (i) Planned Expenditure of MellaPlanned Expenditure Jan

€

Feb€

Mar€

Apr€

Total€

FixedRent 880 880 880 880 3,2501. Subtotal 3,250IrregularGroceries 320 300 200 300 1,120Luas ticket 50 50 100Car insurance 428 4282. Subtotal 1,648DiscretionaryNetfl ix 11.99 11.99 11.99 11.99 47.96Zoo 112 1123. Subtotal 11.99 11.99 123.99 11.99 159.96Total Planned Expenditure 1,211.99 1,241.99 1,631.99 1,241.99 5,327.96

(ii) Rent, groceries, Netfl ix.

16. (i) Planned Expenditure of Emma and TomPlanned Expenditure Sep

€

Oct€

Nov€

Dec€

Total€

FixedMortgage 600 600 600 600 2,4001. Subtotal 600 600 600 600 2,400IrregularPetrol 200 220 220 220 860School books 295 295College fees 1,150 1,1502. Subtotal 495 1,370 220 220 2,305DiscretionaryChristmas 230 2303. Subtotal 230 230Total Planned Expenditure 1,095 1,970 820 1,050 4,935

(ii) The National Budget is the government budget which shows expected income and expenditure for the fi scal year.

(iii) To discourage people from buying petrol.

17. (i) Planned Expenditure of BredaPlanned Expenditure Jun

€

Jul€

Aug€

Sep€

Total€

FixedMortgage 250 250 5001. Subtotal 250 250 500IrregularCar tax 180 180Car running costs 30 30 30 30 120 2. Subtotal 30 30 30 210 300DiscretionaryHoliday 800 8003. Subtotal 800 800Total Planned Expenditure 280 280 830 210 1,600

(ii) €280

(iii) €1,850


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(iv) Breda could buy an electric car instead of a petrol car. An electric car is better for the environment as it it does not release CO2 emissions.

3 3 Type 1: Household Budgets

18. A household budget is a statement of estimated income and expenditure for a period of time.

19. Reason ExplanationKeep track of spending Prevents over-spending.

Prioritise bills Bills which are more important, e.g. rent, should be paid fi rst before deciding if there is enough money left over to go on a holiday.

Save Highlight months in which there is a cash surplus and decide on what to do with the money.

20. Total income Fixed income + irregular income Total expenditure Fixed expenditure + irregular expenditure + discretionary spending Net cash Total income – total expenditure Opening cash Given in question – the amount the household has at the beginning of the monthClosing cash Net cash + opening cash

21. (i) Week 1€

Week 2€

Week 3€

Week 4€

Total€

Total Planned Income 100 100 500 100 800Total Planned Expenditure 97 90 100 78 365Net Cash 3 10 400 22 435Opening Cash 20 23 33 433 20Closing Cash 23 33 433 455 455

(ii) Surplus.

(iii) All the numbers are positive.

(iv) Their closing cash, €455, is greater than their opening cash, €20. Kieran and Lisa could save their money in a bank or credit union.

22. (i) Jan€

Feb€

Mar€

Apr€

Total€

Total Planned Income 2,300 2,300 2,650 2,300 9,550Total Planned Expenditure 2,120 2,600 2,453 2,000 9,173Net Cash 180 (300) 197 300 377Opening Cash 1,000 1,180 880 1,077 1,000Closing Cash 1,180 880 1,077 1,377 1,377

(ii) Surplus.

(iii) Each month has a positive fi gure.

(iv) Reduce Mella’s expenditure in February. Encourage students to use the numbers from their answer above.

23. (i) Jan€

Feb€

Mar€

Total€

Total Planned Income 58,000 58,000 58,000 174,000Total Planned Expenditure 32,000 32,000 32,000 96,000Net Cash 26,000 26,000 26,000 78,000Opening Cash 1,000 27,000 53,000 1,000Closing Cash 27,000 53,000 79,000 79,000

For (iv), encourage students to refer to the information given on the previous page.

The layout of the answer spaces is designed to encourage students to state and explain their answers. Other relevant answers accepted here.

Encourage students to use the numbers from their answer above.





(ii) Surplus.

(iii) Positive fi gures.

(iv) Ronaldo should save or invest his money.

24. (i) Jan€

Feb€

Mar€

Total€

Total Planned Income 2.000 2,000 2,500 6,500Total Planned Expenditure 1,000 1,000 2,500 4,500Net Cash 1,000 1,000 - 2,000Opening Cash 20,000 21,000 22,000 20,000Closing Cash 21,000 22,000 22,000 22,000

(ii) Surplus.

(iii) Messi should save or invest his money.

25. Curtin Household Budget January to March 2025Jan€

Feb€

Mar€

Total€

Planned IncomeTom 2,000 2,000 2,000 6,000Annette 1,000 1,000 1,000 3,000Other 1,000 1,000Total Planned Income 3,000 3,000 4,000 10,000Planned ExpenditureFixedMortgage 1,000 1,000 1,000 3,000Credit union loan 500 500 500 1,500Car insurance 500 500 500 1,500Subtotal Fixed 2,000 2,000 2,000 6,000IrregularHousehold costs 500 500 500 1,500Car running costs 50 50 50 150Light and heat 50 200 50 300Subtotal Irregular 600 750 600 1,950DiscretionaryEntertainment 100 100 100 300Gifts 200 100 300Subtotal Discretionary 100 300 200 600Total Planned Expenditure 2,700 3,050 2,800 8,550Net Cash 300 (50) 1,200 1,450Opening Cash 500 800 750 500Closing Cash 800 750 1,950 1,950

4 4 Type 2: Revised Household Budget

26. Positive Reason

Increased income: The household receives a higher income.

Negative ReasonIncreased expenditure: The household has a greater expenditure than originally planned.



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27. (i) Estimated Budget Actual BudgetJan Feb Mar TOTAL Jan Feb Mar TOTAL

Planned Income € € € € € € € €

Harry McCann 3,000 3,000 3,000 9,000 2,600 2,600 2,600 7,800Lilly McCann 374 374 374 1,122 374 1,774 1,774 3,922Other 100 1001. Total 3,374 3,374 3,374 10,122 2,974 4,474 4,374 11,822Planned Expenditurea. FixedAIB mortgage 900 900 900 2,700 900 900 936 2,736BOI loan repayments

450 450 450 1,350 450 450 450 1,350

VHI insurance 85 85 85 255 85 100 100 285Subtotal 1,435 1,435 1,435 4,305 1,435 1,450 1,486 4,371b. IrregularHousehold costs

900 900 900 2,700 819 819 819 2,457

Car 150 150 150 450 150 180 180 510Light and heat 215 180 395 215 180 395Mobile costs 40 50 100 190 40 50 100 190Subtotal 1,305 1,100 1,330 3,735 1,224 1,049 1,279 3,552c. DiscretionaryEntertainment 400 400 400 1,200 420 420 420 1,260Gifts 310 240 550 310 240 550Holiday 1,200 1,200Subtotal 710 400 640 1,750 730 1,620 660 3,010Total Expenditure

3,450 2,935 3,405 9,790 3,389 4,119 3,425 10,933

Net Cash (76) 439 (31) 332 (415) 355 949 889Opening Cash 200 124 563 200 200 (215) 140 200Closing Cash 124 563 532 532 (215) 140 1,089 1,089

(ii) A new job, overtime, a second job, an increase in wages/salary, etc. Other relevant answer accepted for (ii) and (iii). (iii) Lotto win, dividend payment, child benefi t.

(iv) A mortgage is a long-term loan which is used to buy a house or apartment. Payments may increase because interest rates increase.

(v) January is a colder month.

(vi) €200

(vii) Yes, €1,089.

(viii) The McCanns should reduce their discretionary expenditure of gifts in January to avoid a defi cit.

28. Employees Benefi t-in-kind1. Aileen Ryan, an Aer Lingus pilot Free/discounted fl ights

2. Michael Mac, a sales representative in Supermac’s Free dinners

3. Mary Jones, manager of Ashford Castle in Co. Mayo Free/discounted hotel rooms

4. John Smith, a bank manager with Bank of Ireland Special rates

Other relevant answer accepted here.

Other relevant answer accepted here. Encourage students to reference the budget.



enterprise trb section 2 strand 1

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