Money & Finance

John C Bell & agnes cserhati 2011

Lesson objectives

◦ Learn what is Money◦ Apply our knowledge and understanding of

financial matters◦ Learn how we can manage our own money◦ Understand the concept of making

financial choices & decision◦ Introduce some financial tools and services

such as budgeting, bank account and exchange

◦ Understand some of the costs, risks and rewards related to managing money

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What is money? A medium that can be

exchanged for goods and services and is used as a measure of their values on the market

The official currency, coins, and negotiable paper notes issued by a government.

Source: http://www.thefreedictionary.com/money

Money is easier to use than, say, a cow or bread

S/.

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What can we do with money?

SPEND

TRADE

SAVE

INVEST

As CASH

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How do people manage their money?

Cash

Money management

Debit card

Credit card

Govt office

On-line banking

Bank

Investment

Funds :-Pension & Securities Click to next Slide

Sources of finance – where do you get your money from?

Loan

Bank overdraft

Credit cards

Savings

Earnings from job

(part-time?)

Gift from parents

What are the advantages and disadvantages of the above sources of

finance?

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Budget – a financial tool

An itemised summary of estimated or intended expenditures for a given period along with proposals for financing them.

REWARDS RISKS

Have more control over your money

It is only a forecast

Ensure that you do not overspend

There may be unexpected changes

Help you to establish priorities – what to

spend on first

Setting a budget can be time consuming

Should improve efficiency of

managing your money

You underestimate or overestimate your

expenditure/income

Source: http://www.thefreedictionary.com/money

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Manage your money – financial service Why open a bank Account?

The money can earn interest.

An account is usually needed for a loan.

Many employers insist on paying a salary directly into an account

Accounts often come with a cheque book, a cheque guarantee card and a plastic card to pay for things (e.g. a debit card like “Maestro”). You may also get a credit card like Visa

You can pay cheques from other people into your account. Click to next Slide

The Value of Money – Currency & Exchange

Money is represented by a Currency.

A Currency (eg. $, €, £ or S/.) has a value relative to other currencies

A Currency may be exchanged for another; This usually involves a cost or fee.

The purchasing (buying) power of a currency can change with time (dependant upon economic strength & stability, demand and confidence.

Money is easier to use than, say, a cow

or a Slice of Toast

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Overview … we now know !!!What is moneyWhat we can do with itHow we can manage our

moneySome of the advantages

and disadvantages of budgeting?

Why open a bank account

Suggested Homework – Opening a bank account

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