Student D

Date: 2015-10-07; view: 731.

Student C

You also think that you must list all sources of income you can rely upon: allowance, your income from a part time job as an errand-boy (girl). In addition to allowance you are engaged in occasional baby-sitting, and your grandparents presented you with a sum of money on an account with a bank, so you can rely on interest on savings. It comes to your mind that you should record only your take-home pay as income. You should note all deductions[10] from your pay-cheque. Your second step should be to record how much you spend for food, entertainment, clothing, college supplies, personal care, transportation, and miscellaneous items. You wonder in which of the categories you spend the most, the least. You think that you should decide what changes to make in the budget if you want to reduce your expenses.

Make use of the helpful phrases:

ö I'd agree with you to a certain extent ... .

ö Wouldn't you say ... ?

ö I take your point.

ö I'm not sure I quite agree ... .

ö I see what you mean, but ... .

ö Come off it! You can't be serious.

You remind your partner that fixed expenses are set in advance and must be paid regularly (e.g. rent payments, tuition, higher purchase instalments). Flexible expenses are necessary but change with circumstances (food, clothing, college supplies). Optional expenses vary and are not always necessary (entertainment, personal care). You suggest making an expense chart and figuring out what percentage of your income is allocated for each item in the chart. Thus you can compare your income and expenses. A consistent item of overspending means that the budget should be readjusted or followed more closely. Obviously expenses should not be higher than income.

Make use of the helpful phrases:

ö Let me remind you that ... .

ö Isn't it( also) true to say (to assume)that ... .

ö OK.

ö I am bound to agree.

ö Personally, I think that ... .

Student E

You point out that a personal budget is a finance plan that allocates future personal income towards expenses, savings and debt repayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available for creating, using and adjusting a personal budget. A simple budget can be written on a piece of a paper with a pencil, and optionally, a calculator. Several websites, such as Mint.com and Thrive, have been devised to help manage personal finances.

Make use of the helpful phrases:

ö I'd like to point out that ... .

· Possibly (maybe so) ... .