Money & Finance Money & Finance John C Bell & agnes cserhati 2011 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 Click to next Slide

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: Money is easier to use than, say, a cow or bread Click to next Slide

What can we do with money? SPEND TRADE SAVE INVEST As CASH Click to next Slide

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? Click to next Slide

Budget – a financial tool An itemised summary of estimated or intended expenditures for a given period along with proposals for financing them. REWARDSRISKS 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: Click to next Slide

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 Click to next Slide

Overview … we now know !!! What is money What we can do with it How we can manage our money Some of the advantages and disadvantages of budgeting? Why open a bank account Suggested Homework – Opening a bank account Click END Slide Show