TOPIC: 10.0 Consumer Mathematics: Financial Management

TOPIC: 10.0 Consumer Mathematics: Financial Management

10.1 Financial Planning and Management

DREAMS

List down dreams that are related to financial management.

EFFECTIVE FINANCIAL MANAGEMENT PROCESS

• a) Setting goals

  
  

• b) Evaluating financial status

  
  

• c) Creating financial plan

  
  

• d) Carrying out financial plan

  
  

• e) Reviewing and revising the progress

Example Situation:

You would like to own a branded smart phone, which costs RM699.00

• Step 1 Set your goal.

• Step 2 Set the time duration to reach your goal.

• Step 3 Set the amount of money you should have.

• Step 4 Set the amount of money that should be saved every month.

• Step 5 State a suitable step to reach your monthly saving goal.

Step 1 Set your goal.

Want to own the latest and branded smart phone.

Step 2 Set the time duration to reach your goal.

Duration of 10 months.

Step 3 Set the amount of money you should have.

RM699.00

Step 4 Set the amount of money that should be saved every month.

RM69.90 a month.

RM17.50 a week.

Step 5 State a suitable step to reach your monthly saving goal.

Save at least of RM2.50 a day from the pocket money received.

 Do part time jobs during school holiday or on weekends.

NEEDS and WANTS

Needs must be prioritized more than wants.

DURATION

Duration of time and amount of money required to achieve the dreams.

Less financial, requires less time to achieve.

SHORT-TERM and LONG-TERM NEEDS and WANTS

List down short-term and long-term needs and wants you intend to achieve. The list of needs and wants must involve financial management.

SHORT-TERM financial goals can be achieved less than a year