Subject: Business Finance

Author: Mr. Ace M. San Gabriel

Editor: Mr. Jhune Michael D. Segismundo
Reviewer: Mr. Mark Paulo Y. Tanjente

WEEK 13-14
LESSON 9 –Managing Personal Finance

Description of the Lesson:

In this lesson, we will be discussing about the tips and different strategies on how to manage your
personal finances.

Objectives:

At the end of this lesson, the student is expected to learn the following:
1. The importance of personal money management in a more comprehensive approach;
2. Getting ready for retirement
3. More savings strategies

Day 1: Pre-assessment (What I know)

Direction: What does money mean to you? (Write your essay on the answer sheet provided)
Day 2: Lesson Content (What’s new)
What does money mean to you?
Seems like a simple question, doesn’t it? But if you really stop and think about it, it may be difficult for
you to come up with an immediate answer. Money means different things to all of us; that’s why we
each have unique financial goals related to our wants, needs and values. For some, money means
security. For others, it’s about freedom or success. Before you can learn how to manage your money,
you must learn what money means to you. Spend some time thinking about your money values. Ask
yourself the following questions to determine your money values and learn how they shape your
spending and saving priorities.

 How did you view money growing up?

 Did your parents ever talk to you about money?
 Have you ever felt richer or poorer than your friends?
 How did that make you feel?
 How were your parents at handling money?
 Do you consider yourself a spender or a saver? Why?
 What’s your charitable-giving philosophy?
 Financially speaking, where do you see yourself in five to 10 years?
 Are you willing to live below your means for a while in order to have something better later in
life?

Get on Track, Stay on Track

P a g e 1 | 8 BSTM 4_BUSINESS FINANCE WEEK 7

Now that you have a better understanding of how you view money, what you want out of life and how
you value your financial resources, here are a few key thoughts to keep you on track during your
financial planning.

• When it comes to spending, wait. We live in an immediate gratification society. With fast food, the
Internet and mobile phones/email devices, we’re used to getting what we want, when we want it. This
technology isn’t bad but having everything at our fingertips in a matter of seconds increases our urge to
spend without thinking or planning ahead. Try this. Next time you’re tempted to purchase an
inexpensive item you weren’t planning to buy, don’t. Give yourself three days; if you still want it, then
you can consider making the purchase. If it’s a larger, more expensive item, like a car or home, resist the
urge to upgrade as long as you can.

• Understand your money values and priorities and stick to them. By now, we all know the difference
between our wants and needs. However, something another person considers a want, you and your
family may highly value. For example, giving to charity isn’t a basic survival need, but for many,
planning for charitable expenses is a priority. Living in a nice home may be important to you, but maybe
wearing expensive clothing or driving a new vehicle isn’t. Find out what’s most important to you and
your family and cut back in other areas to ensure you can afford your lifestyle.

• Forget about what other people have. Many people live lives they can’t afford by drowning in debt.
Focus on your future goals and ignore how your friends, family, co-workers and neighbors spend their
money. Chances are they use credit excessively to afford their lifestyle. Keeping up with others is a
never-ending battle.

Begin With a Budget

Financial success begins with creating and sticking to a budget. A budget, also known as a spending
plan, allows you to plan for your monthly expenses and keep better track of where your money goes.

Use the budget worksheet on your supplemental CD or create your own using a spreadsheet or online
software. To complete your spending plan, you’ll need to:

 Know your monthly income. Income can come from a paycheck, child or spousal support, or
unexpected cash in the form of gifts, tax returns or rebates. If your monthly income varies
because your work hours constantly change or you work on commission, budget based on your
base salary or take an average of your last three paychecks.

 List your financial responsibilities. What bills and expenses do you have each pay period and
how much do they typically cost? Don’t forget to include expenses that occur periodically, like
insurance premiums or property taxes. Your fixed expenses are easier to track because they stay
the same each month—think mortgage, car or student loan payments. Your variable expenses,
like groceries, fuel and entertainment, are trickier because they change from month to month.
Don’t forget about savings. Pay yourself first before paying bills.

 Track your spending. Monitoring your variable expenses is about to get easier. Hang onto your
receipts and write down all financial transactions for one month so you can get an accurate
picture of your spending. { Paying yourself first means setting aside money designated for
your savings goals before paying bills. Make it a habit and watch your account grow!

 Categorize your spending. Next, pull out your stash of receipts and list of transactions and lump
them together in like categories. You’ll probably see piles emerge for “dining out,”

P a g e 2 | 8 BSTM 4_BUSINESS FINANCE WEEK 7

 “entertainment,” “clothing,” “household repairs/updates,” “groceries,” etc. Based on your current
spending, assign each category a monthly amount.

 Do the math. Then, subtract predicted expenses from your projected income. Are you already
over budget? If so, refine a few of your variable expense categories and try again. After
implementing your budget, if you find yourself spending more or less, adjust your categories—or
spending—accordingly.

Budgeting Success Tips

 Recruit your family. If you have kids, ask them to help you determine areas in which you can
cut back and then identify savings goals for the family. Getting their input will make it easier
when they’re tempted to spend instead of save for the goal. For example, if your family is saving
for a vacation, it may be necessary to limit trips to the movies to conserve cash.

 Talk with your family about the decisions you make each day to stick to your spending
plan. Did you forgo the fancy coffee and choose home-brewed java for your caffeine fix? Let
them know about your spending struggles and successes.

 Don’t forget the fun. If you cut your entertainment budget completely, your spending plan will
be impossible to stick to. Set aside money to do fun, family activities at least once per week and
you’re more likely to stick with your spending plan

 Set aside some funds for a rainy day. Start and contribute regularly to an emergency fund. Aim
to have at least $1,000 to cover minor unexpected expenses and repairs. Work your way up to
save three to six months’ worth of living expenses.

 Do what work for you and your family. Many budgeting variations exist; find one that works
for your situation and stick to it. If you try one strategy and it doesn’t work, don’t give up. Try
something new.
Twists on the Classic Budget
If you’re not the spreadsheet-loving, track-your-spending type, fear not. Money Magazine
highlighted the following twists to the classic spending plan. See if one of these fits your
financial lifestyle.
Thrice as Nice Use the Envelope System Trim It Down
How it works:
How it works: Grab some How it works: Grab your bank and
You’ll need three bank accounts—
envelopes and write the name of credit card statements and make a
two checking and one savings. each category in your spending plan list of recurring expenses and the
First, decide how much of every on a separate envelope. Then place amount spent. Instead of cutting
paycheck you want to put toward the monthly amount of cash you your overall spending by a certain
savings and have that amount plan to spend on that category percentage, choose one or two large
automatically sent to your savings inside. Forget your checks and expenses and cut those. Maybe it’s
account. Via direct deposit, send the plastic cards, use these envelopes cable television, the second car or
rest of your paycheck to checking instead. Once the cash in each your gym membership. Whatever it
account No. 1. From this account, envelope is gone, there’s no more may be, cut it loose and add those
you’ll pay all monthly fixed spending until next pay period. One extra funds toward your savings
expenses, like rent, car payments word of caution—be careful if you goals. The perks: Cutting one
and utilities. With the money left implement this plan. If your cash bigger item versus making an
over after paying your fixed gets lost or stolen, there’s no across-the-board cut alleviates the
expenses, divide by four and set up replacing your money. The perks: need to re-evaluate your spending
This tactic forces you to spend only plan on a regular basis, which saves
a weekly automatic transfer of that
the amount you’ve allotted for you time and effort.
amount to checking account No. 2.
groceries, gas, entertainment,
Use this account for all variable
P a gexpenses
e 3 | 8 like
BSTM 4_BUSINESS FINANCE clothes,WEEK
etc. 7
groceries,
entertainment, clothes and eating
out. Refrain from transferring more
money or using credit cards.The
perks: This process forces you to
Successful Saving
If you’re like most adults, you’re looking for the key to successful saving. Here it is, boiled down to one
simple phrase—start now. No matter what stage of life you’re currently in, make it a priority and a habit
to save for your future, big-ticket items and emergencies. There are two ways to look at saving. Saving
can mean putting money aside and investing, but it can also mean living a more frugal lifestyle and
cutting back on your spending. Both are important pieces of the puzzle if you want to watch your
savings account grow. Saving for your future can’t be overlooked if you want financial security and
independence for your family. Many experts recommend saving at least 10-15 percent of your income; if
that doesn’t seem doable, start contributing as much as you can on a regular basis and work your way up
from there. It’s making savings a consistent action that matters.

Embrace the Frugal Lifestyle

Curbing your spending isn’t as much of a sacrifice as it seems. Just by making small changes in your
spending habits, you can stash away extra cash toward your goals. Here are just a few of the many cost-
saving ideas to consider. To learn more, consider blogging about your new frugal lifestyle or asking for
recommendations from friends and family.
• Stop eating out or limit the number of times you eat out each month. Dining out, grabbing lunch
on the go and stopping for morning coffee quickly add up. Commit to cook more meals at home and
watch your savings grow.
• Be smart about buying groceries. Plan a menu ahead of time and buy items in bulk. Try to use
recipes that call for the same ingredients and use coupons to boost your savings.
• Resist the urge to upgrade. If you have an item that’s in working condition (a car, coffee pot,
toaster, washer, TV, etc.) don’t buy a new one, no matter how great the sale. Once the item breaks, you
can replace it, but as long as it’s working, you’re wasting money by replacing it.
• Don’t buy new. Take advantage of other people’s upgrades if you’re in the market for an item.
• Limit nights out on the town. Host a game night at home with your friends instead of going out to
dinner and a movie. Consider low-cost options like local sporting events, theater productions and other
community activities.

Day 1:
Application (What I Can Do)
Instruction: On your answer sheet, fill in the blanks to complete the statement.

Types of investors in the market are classified on the basis of the individuals’ objective, investment
horizon period and risk appetite or risk tolerance limit. Individuals who are just using the market to
make money quickly for a _________________ period of time are called a trader. Their risk level has
been high and they invest with their own money as well as borrowed money. The market participants
who like to stay in the market for a longer period of time, take ___________________ risk and usually
invest with their own money are called as investors. Other type of investors is referred as gamblers,
who invest in a very _______________ period of time and take the _________________ risk among
all the investors

Day 2:
Valuing/Integration (What’s More)

P a g e 4 | 8 BSTM 4_BUSINESS FINANCE WEEK 7

Instruction: On your answer sheet, enumerate the following:
o Tips on how to embrace a frugal lifestyle
o The following twists to the classic spending plan
o Budgeting success tips

Day 3:
Post-Assessment (What I Have Learned)
Instruction: (On your answer sheet) Write an essay about your realizations and the changes that you will
do for a better personal money management, share us some tips on money savings, and what are your
dream amount in your bank account 5 years from now.

Subject: Business Finance

Instructor: Mr. Ace M. San Gabriel
Student’s Name: ___________________________________________________
Course and Section: ________________________________________________

P a g e 5 | 8 BSTM 4_BUSINESS FINANCE WEEK 7

WEEK 13-14
LESSON 8 –Investment Management

Answer Sheet

Day 1: Pre-assessment (What I know)

Direction: What does money mean to you? (Write your essay on the answer sheet provided)

Day 2:
Valuing/Integration (What’s More)

Instruction: On your answer sheet, enumerate the following:

Tips on how to embrace a frugal lifestyle
P a g e 6 | 8 BSTM 4_BUSINESS FINANCE WEEK 7
  ______________________________________________________

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

The following twists to the classic spending plan

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

Budgeting success tips

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

 ______________________________________________________

Day 3:
Post-Assessment (What I Have Learned)

P a g e 7 | 8 BSTM 4_BUSINESS FINANCE WEEK 7

 Instruction: (On your answer sheet) Write an essay about your realizations and the changes that you will
do for a better personal money management, share us some tips on money savings, and what are your
dream amount in your bank account 5 years from now.

Source: https://oklahomamoneymatters.org/

P a g e 8 | 8 BSTM 4_BUSINESS FINANCE WEEK 7