Welcome to Finance
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Introduction to Financial Awareness
Transcript of Welcome to Finance
- 1.
2.
- Song: Old Time CalypsoRich Man Poor Man Lord Brynner
- Rich man, poor man
- Who says Im a poor man
- Ah got plenty dough
- And ah spreading joy for so!
3.
- Demonstrate an understanding ofbasic personal money management skills
- Practise comparative shopping for basic needs especially nutrition needs
- Formulate a personal budget based on current financial resources, as a tool for meeting basic needs and proper financial management
4.
- Trainees will:
- List idioms and proverbs that deal with money
- List everything they have spent money for today and yesterday
- Track their spending for a week.
- Categorise their spending into needs and wants.
5.
- Define comparative shopping.
- State the benefits of comparative shopping
- Share their experiences of comparative shopping.
- Complete numeracy questions on comparative shopping.
6.
- Define budget
- State who needs a budget
- State the items in their budget and what percentage is allocated to each item Complete numeracy questions on percentage allocations for a budget.
- Give suggestions of what would happen when income is not enough to meet budget requirements (expenditure).
- Complete their personal budget.
7.
- How are you currently spending your money? Have you ever taken careful note of how you spend every dollar?
- Tracking your spending can reveal interesting things about yourself. What do you think those things are?
- Listeverythingyou have spent money on today so far.
- Listeverythingyou spent money on yesterday.
8.
- From today, listeverythingyou purchase everyday (for the next week).
- Put these items into two categories
- A) NEEDS
- B) WANTS
Item Cost Need Want 9.
- Tracking your spending can reveal:
- Your money wasters
- Your financial priorities
- Your key to future financial success
10.
- What is comparative shopping?
- What are the benefits of comparative shopping?
- Share your experiences of comparative shopping
11.
- Comparative shopping is purchasing goods and services after you have compared the prices based on their weight and quality.
- Comparative shopping helps you to get the best from your dollar.
- Comparative shopping means you must shop around.
12.
- A man will purchase an item he needs worth $1.00, for $4.00.
- A woman will purchase an item she does not need for $1.00, worth $4.00
13.
- How much would Indira save by purchasing a 5 L container of oil (which costs $21.00) instead of buying 5 1L bottles (which costs $4.50 each)?
- Which is cheaper 5 oranges for $15, 6 oranges for $17 or 2 oranges for $5
- Which is cheaper? Beef sold @ $6.00 per Kg or@ $4.00 per lb?
14.
- Types of Budgets
- Personal
- Family
- National
- Corporate
15.
- What is a budget?
- A budget is a financial plan of income and expenditure.
- Who needs a budget?
- Everyone
- What items would you put in your personal or family budget?
- In what percentages would you allocate your income to these items?
16.
- Income
- Expenditure
17.
- Salary/Wages
- Returns from investments
- Interest
- Other
18.
- Housing 30%
- Transportation 10%
- Debt 15%
- Savings 10%
- Food 10%
- Recreation 5%
- Other 20%
- Total 100%
19.
- Mortgage or Rent
- Utilities
- Insurance (House)
- Taxes (Land & Building)
- Home Maintenance
20.
- Car Payments
- Auto Insurance
- License
- Maintenance
- Gasoline
- Parking
21.
- Hire Purchase
- Loans
- Credit Cards
22.
- Short Term
- Medium Term
- Long Term
- Investments
23.
- Groceries
- Eat Outs
24.
- Family Recreation
- Individual Recreation
- Couple Recreation
- Children Recreation
- Vacation
25.
- Clothing
- Child Care
- Education
- Medical Bills
- Tithing
- Charity
- Gifts
26.
- Prepare a budget using the percentage allocations for a family with an income of:
- $2000.00
- $5000.00
- $7000.00
- $10000.00
- What happens in cases when the income is not enough to meet the budget requirements (expenditure)?
27.
- Making Money is Pleasurable, Having Money is Difficult Jan Bann, Chairman - Bann Company
- Six Steps of Financial Planning
- Establish financial goals
- Gather relevant data
- Analyze the data
- Develop a plan for achieving goals
- Implement the plan
- Monitor the plan
28.
- Wealthis defined as the difference between total assets and total liabilities.
- Assets _______________________________
- Liabilities _____________________________
- Financial Institutions
- Banks ___________________________________
- Credit Unions _____________________________
- Trust Companies __________________________
- Insurance Companies ______________________
- Stock Exchange ___________________________
- Offshore Banks ____________________________
29.
- Take out savings first
- A portion of the savings must be used for long term (Investments)
- True savings are not for emergencies
30.
- Investments refer to the accumulation of some kind of asset in hopes of getting a future return from it.
- Investments can refer to:
- The purchase and production of capital goods. Goods which are not consumed, but used for future production.
- The buying of securities or other monetary or paper assets
31.
- Estate refers to all the assets owned by an individual (esp. at time of death)
- Your estate is your legacy