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WEEK 5
TOPIC: PERSONAL FINANCE
CONTENT:
- Meaning of personal finance
- Uses of budget.
- Sources of finance for individuals
- Consumption and choice
- Scale of preference
- Modesty: (1) Meaning of Modesty (2) Attributes of Modesty: (i) Simplicity (i) Honesty (iii) Prudence (iv) Contentment etc.
- Effect of modesty
- Link between modesty and extravagant
- Preparation of personal or individual budget.
Sub topic 1: (A) MEANING OF PERSONAL FINANCE
Personal finance refers to the methods in which an individual manages his money assets and real assets.
- Examples of money assets are –cash and money market instruments.
- Examples of real assets are – land, buildings, furniture’s, equipment’s etc
(B) USES OF PERSONAL BUDGET
- It makes us live within our income.
- It shows how money is to be spent and being spent.
- It helps to control expenditure and ensure self or financial discipline.
- It guarantees maximum satisfaction.
- It enables families communicates their financial conditions to members.
- It inculcates saving habits
- It enforces lessons learnt from popular financial equation.
- It indicates the need for additional or surplus budget.
(C) SOURCES OF FINANCE FOR INDIVIDUALS
The following are common sources of finance for individuals:
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