Week 2: Income, taxation and benefits

Introduction

Martin gives you a heads up on what to expect.

This is where you start to build your budget, filling in all your sources of income using a budget planner. Make sure you keep a copy of your workings so that you can refer to them again when you complete your budget by adding your expenditure. You can record these details in your fact find.

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Transcript

Martin Upton

Hello again. Welcome to Week 2 of Managing my money.

The first week of the course showed you how to create and use a financial plan. It also looked at the behavioural factors and other hurdles that can sometimes get in the way of good financial management.

Careful financial planning not only helps us to keep on top of our finances today; it also helps to make sure we're matching our resources to our personal objectives in the future.

Over the next two weeks, you'll look at household income and expenditure - the two component parts of a household budget.

This week, you'll look at income, wealth and assets. You'll examine the different types of incomes people receive during their working lives, whether in the form of earnings from employment or from state benefits like Child Tax Credit and Universal Credit.

You'll think about how the tax and benefits system can be used to address income inequality, and you'll see the impact of inflation on household finances. Finally, you'll start compiling your own household budget.

So, what's the point of this week? One crucial part of understanding your finances is how you're taxed and how inflation impacts on your money.

Have a great week.

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This course is presented with the kind support of True Potential LLP.

The True Potential Centre for the Public Understanding of Finance (True Potential PUFin) is a pioneering Centre of Excellence for research in the development of personal financial capabilities. The establishment and activities of True Potential PUFin have been made possible thanks to the generous support of True Potential LLP, which has committed to a five-year programme of financial support for the Centre totalling £1.4 million.