BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.
-
Upload
reagan-loft -
Category
Documents
-
view
216 -
download
1
Transcript of BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.
![Page 1: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/1.jpg)
BUSINESS & PERSONAL FINANCELEVEL 3M
![Page 2: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/2.jpg)
DEFINITION
• Money management is the control of cash flow.
![Page 3: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/3.jpg)
Various sources of income
• Wages
• Allowance
• Gifts
![Page 4: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/4.jpg)
Activities involved in managing money
• Set goals
• Make economic decisions
• Spend wisely
• Live within means
![Page 5: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/5.jpg)
Flexible Expenses
• Flexible Expenses that can be adjusted or eliminated, such as those for luxuries, as opposed to fixed expenses, such as rent or car payments.
![Page 6: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/6.jpg)
Types of Expenses
Fixed expenses do not depend on your consumption of a good or service. A fixed expense is a cost that does not change from period to period or that changes only very slightly. Fixed expenses are usually paid on a regular basis, such as week to week, month to month, quarter to quarter or year to year. Typical household fixed expenses are mortgage or rent payments, car payments, real estate taxes and insurance premiums.
![Page 7: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/7.jpg)
Financial Status
• Cash flow statement
• Expenditure
![Page 8: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/8.jpg)
Expenditure
![Page 9: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/9.jpg)
Steps to develop a spending plan to satisfy goals.
Budget: allocation of funds
• Balance your budget
• Estimate your expenses
• Estimate your income
• Plan for savings
• Set goals for spending
![Page 10: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/10.jpg)
Types of Budgets
• Start-up: The amount of money needed to begin a company. It includes not only the money to buy needed goods, but also money to cover the initial expenses of the company.
• Operating:-- a detailed outline of all estimated income and expenses during a given future period.
• Cash: an estimation of cash payments and receipts during the next planning period.
![Page 11: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/11.jpg)
Successful characteristics to creating a budget
• Utilize a spreadsheet or worksheet
• Estimate your income
• Estimate your flexible expenses
• Plan your savings
• Balance and adjust your budget
![Page 12: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/12.jpg)
Definition
• Accounting consists of:
• Planning
• Recording
• Analyzing and interpreting financial activities
![Page 13: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/13.jpg)
Classify business items with value
• Assets – Anything owned by an individual that has a cash value. This includes property, goods, savings or investments.
• Liabilities – anything that is owed to someone else.
![Page 14: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/14.jpg)
Capital
• assets available for use in the production of further assets
• wealth in the form of money or property owned by a person or business and human resources of economic value
• a seat of government
![Page 15: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/15.jpg)
Show the relationship among assets, liabilities and capital
• Accounting equation ( A = L + C)Analyze the affects of transactions on the
accounting equationAssets = Liabilities + Capital (revenue –expense)
![Page 16: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/16.jpg)
Use T accounts to analyze cash transactions
Cash payments/purchaseCash receipts/sales
![Page 17: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/17.jpg)
Record simple business transactions
Cash journal
![Page 18: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/18.jpg)
Prepare a simple financial statement
Balance sheet Income Statement
![Page 19: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/19.jpg)
Use technology to record business transactions
![Page 20: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/20.jpg)
Explore careers identified with accounting
• Record keepers
• Account’s clerk
• Bookkeepers
• Accountants
• CPA’s
• CA’s
1
23
4
5
6
![Page 21: BUSINESS & PERSONAL FINANCE LEVEL 3M. DEFINITION Money management is the control of cash flow.](https://reader036.fdocuments.us/reader036/viewer/2022062621/551bdf3d550346b4588b5ce5/html5/thumbnails/21.jpg)
Closure
• Write a paragraph indicating What did know before exploring this topic
• What did I want to know?
• What Have I learned?
• Add this to your portfolio.