Today 7B explored the importance of budgeting our money when it comes to the expenses of running a home. 7B discussed where our money comes from and we agreed that the majority of households rely on a monthly wage. We also began to categorise items into what we need and what we want and what we need. We agreed that we need to spend money on items such as mortgages/rent and taxes and that these are known as fixed household costs as they will stay the same price each month. We also talked about the need for groceries, electric, heating etc. however, these are categorised as essential living costs as we would not always spend the same amount on these items each month, for example, we would not spend the same amount on utilities such as oil in January that we would spend in July.

Finally, we have non-essential living costs which are items we might buy to treat ourselves or leisure activities which we use for entertainment.