Budgets
What is a budget?
A plan for income and expenses
What is government?
The group that runs the country
What is a transaction?
Buying or selling
What is the formula for profit?
Profit = Income – Expenses
A business earns R2 500 and spends R1 850.
Calculate the profit
R650
What is income?
Money received
Name ONE service provided by government
Education / healthcare / roads
What is profit?
Income – expenses
If income = R1000 and expenses = R700
Profit = ?
R300
Income = R3 200
Expenses = R3 750
Profit or loss? How much?
Loss of R550
What is an expense?
Money spent
What are taxes?
Money paid to government
What is a loss?
Expenses > income
If expenses are higher than income → profit or loss?
Loss
A learner has R1 000.
They spend: R250 on clothes, R180 on food, R220 on transport. How much money is left?
R350
Why is budgeting important?
Helps manage money / avoid overspending
Why do citizens pay taxes?
To fund services
What is a receipt?
Proof of payment received
Income = R800, Profit = R200
Expenses = ?
R600
A business has:
Income: R4 500
Profit: R1 200
Calculate expenses
R3 300
A learner earns R500 and spends R600.
What problem does this show?
Overspending / deficit
What could happen if people do NOT pay taxes?
Less services / poor infrastructure
Why is it important to keep financial records?
Track money / avoid mistakes
Explain what happens to profit if expenses increase
Profit decreases
A shop makes R800 profit per week.
👉 How much profit in 5 weeks?
R4 000