Session 2: Budgeting and taxation
This is the second session of a course on money management produced by The Open University in collaboration with MoneySavingExpert.com.
In this session on budgeting and taxation you will learn how the income you receive – your net income – is affected by the deductions of income tax and National Insurance Contributions (NICs) from your gross income.
You’ll then explore the characteristics of your spending before you start building your budget.
Taking firm control of your household budget is the foundation of good financial management. And certainly being aware of where economies can be made has become even more important in the wake of the rapid growth of price inflation seen in 2022 resulting from higher energy bills and the rising costs of many goods, including groceries.
After studying this session, you should be able to:
- understand how income tax and National Insurance impact on earnings
- understand household spending
- compile a budget
- understand the key aspects of budget management.
This Session is one of a suite comprising the course MSE’s Academy of Money and has been made possible by financial and content contributions by MoneySavingExpert.com.