Skills Needed to Manage Personal Finance

Skills Needed to Manage Personal Finance

Objectives Check...

Quick Test

Recap of what we have learn't so far

Can you state three types of income

• Wages/Salary
• Grants & Loans
• Bonus
• State benefit
• Inheritance
• Tips
• Gifts

Can you state three types of expenditure.

Describe what a personal budget is?...

• Personal budgets
• Sources of income
• Types of expenditure
• Why we manage personal finance
• Keeping financial records

A Personal Budget is...a list of planned income and expenditure for a particular period in the future. You can compare your actual spending with what you are planned to do.

• Accomodation
• Food
• Household expenses
• Clothing
• Leisure Activities
• Travelling
• Mobile phone bill
• Loan payments
• Credit card payments

1. Identify how you can problem solve a given scenario and compare a number of solutions you have come up with in relation to personal finance.

2. Explain the term risk taking and how this is applied to a given scenario allowing you to make the right choice.

3. Define the term decision making and how you would relate this to when you have had to make a decision about your own personal finance.

4. Explain how time management relates to looking after your own personal finances and providing an example.

1. Describe what a personal budget is?

2. Can you state three types of sources of income.

3. Can you state three types of expenditure.

4. Can you explain how we manage personal finance and provide an example.

5. Can you state two financial records and explain why they are helpful.

Can you state two financial records and explain why they are helpful.

Can you explain how we manage personal finance and provide an example.

• Bank and credit card statements
• Cheques
• Receipts
• Bills
• Pay slips

• Avoid getting into debt
• Controlling costs
• Remain solvent
• Controlling cost
• Remain solvent
• Savings
• Maintaining a good credit rating

How many did you get right? and how well did you do?...

So lets do a quick test to see how much we remember.

http://www.online-stopwatch.com/countdown-clock/full-screen/

You have 8 minutes to complete the task

Activity

Watch the Citizens Advice Bureau video clips regarding 'changing young lives'.

In groups, identify the points made that link to what we covered so far in this lesson.

* Problem Solving

* Risk Taking

* Decision Making

* Time Management

Skills Needed to Manage

Personal Finance

Activity

Objectives

Check

Provide your own example of how you would consider time management in your own personal finances.

What approach would you take?...

Identify how you can problem solve a given scenario and compare a number of solutions you have come up with in relation to personal finance.

Explain how time management relates to looking after your own personal finances and providing an example.

Video Clip 2

Advice changing young lives: Adila's story

Video Clip 1

Advice changing young lives: Scooby's story .

Explain the term risk taking and how this is applied to a given scenario allowing you to make the right choice.

Define the term decision making and how you would relate this to when you have had to make a decision about your own personal finance.

Time Management

Managing Personal Finance takes time and should not be rushed. It is good practice to manage your finances.

Aims and Objectives

How do you think you would apply time management to your personal finances?...

Think about your bank statements, receipts and budgets, or even spending.

Activity

Objectives

Aims

Can you each provide an example of where you have had to make a decision over your finances.

Think about: if you have thought of all the actions possible, do you have to make the decision now or is their time to think and is the decision important?

To understand the various skills required to managing your own personal finances, so that they can be used in a real life situation.

1. Identify how you can problem solve a given scenario and compare a number of solutions you have come up with in relation to personal finance.

2. Explain the term risk taking and how this is applied to a given scenario allowing you to make the right choice.

3. Define the term decision making and how you would relate this to when you have had to make a decision about your own personal finance.

4. Explain how time management relates to looking after your own personal finances and providing an example.

Risk Taking

Decision Making

Problem Solving

Decision making means choosing what to do when there is several options.

Have you every had to make a decision over your finances?...

e.g. having to stay in instead of going to the cinema.

Sometimes financial decisions involve an element of risk taking.

As you progress in life, you may have to decide how safe different types of investment are. There is no hard and fast rule about how to access this kind of risk.

A problem is an unexpected difficulty. This means you need extra money for something unexpected.

Skills required could be as follows...

Starter Activity

• Problem Solving
• Risk Taking
• Decision Making
• Time Management

What types of skills do you think you need to have to manage personal finance?

Discussion

Activity

We will look at each

one in turn

Can you think of any other financial risks that you may have to take at the moment or in the future?...

You lent £10 to a friend who hasn't repaid you and is now avoiding you. What would you do and how would you learn from this?...

Lets create a mind map

http://www.online-stopwatch.com/countdown-clock/full-screen/

You have been provided with a scenario and you are to think of solutions to the problem. Compare the ideas and identify their strengths and weaknesses.

You will have 10 minutes to complete this task

Write your answers on a post it note and we will share this with the class.

Unit 20: Managing Personal Finance