Setting a budget for the short, medium
and long term
This section will help you think about how different
people have different needs and how priorities need to change
if these needs are going to be met.
Look at the case study below, then think
about how this family can begin to plan for their needs and
adjust their budget to take these new needs into consideration.
Beverley is 43 years old, she is a single mother and
has three children between the ages of 11 and 17. She has a
full-time job and regularly works overtime. While she is at
work her oldest child looks after the younger children. Her
job means that at the moment the family cope quite well financially
managing to save around £20 a week.
Recently, Beverley has decided
she needs to start saving money for when the children leave
school, she would like to save £100 per month. She has also
promised her family that she will take them away to Florida
on holiday to celebrate her 45th birthday in 18 month's
time and has not yet started to save money for this trip. In
addition, there are various loans Beverley has taken out which
she hopes will be paid within the next 12 months.
Look at Beverley's budget and
see how the family could reduce their spending. Rewrite Beverley's
expenditure considering her needs. Will she be able to make
the savings that she wants?