UNIT 6. BUSINESS AND MONEY (SOCIAL SCIENCE)

UNIT 6.  BUSINESS AND MONEY

THE COSTS OF RUNNING A BUSINESS

Before starting a business there are some startup costs. You can got to a bank and ask for an investement loan.

·         Ongoing costs

They are costs that can be daily, weekly , monthly or yearly.

-          Rent: is the Money a business pays to use a building or an office.

-          Utilities: for example, water, electricity,  gas, internet, telephone line.

-          Another expense is insurance, which is necessary in case somebody has an accident  or the building is damaged.

-          Salary for the staff.

·         Variable costs

They depend on the sales the business makes.

-          Materials to make the products.

-          Promotional costs of advertising and campaigns.

-          Shipping costs if the products are delivered to consumers (for example from an on line shop).

-          Commissions are sometimes paid to employees for the sales they make. If they meet sales target they receive a bonus.

SAVING AND SPENDING MONEY

Cashflow is Money coming in and Money going out. You can save your Money in savings account in a bank but the bank can use your Money. You recieve a percentage of the profits as interest and you can ask for your capital when you want.

·         Saving money

Children can save their Money in different ways, at home or in a bank if their parents sign the papers. In a bank Money is safe and they can receve an interest, although you have to pay a fee for having an account.

·         Spending less

Shops have offers  and bargains  (products at a very low Price)

·         Personal budgeting

Making a budget is a way to minimise expenses and maximise savings. There are:
- Fixed expenses (the same amount of Money each month)

-          Variable expenses (vary from month to month)

·         Planning a budget

1.       Keep a record of your income.

2.       List the things you want to buy

3.       Check the prices of the things you want to buy.

4.       Revise your list and delete things you can´t afford.

5.       Repeat step 4 until you are within your budget.