Financial Management

3.3

Financial Management

Steps to manage our financial:

Plan daily, weekly and monthly budget by setting up our savings and maximum spendings.
Records our savings and spendings.
Set up a financial target to achieve.

EXAMPLE: DAILY BUDGET

Arif is given RM 20 by his father each week to spend at his school from Monday to Friday.

School days: 5 days

If Arif wants to spend daily, he must divide his money into 5 days.

\(\frac{\text{RM } 20}{5\text{ days} } = \frac{\text{RM } 4}{\text{ day} }\)

Therefore, Arif can only spend RM 4 each day.

EXAMPLE: SAVINGS TARGET

Farid is given RM 50 by his father at the beginning of each month and each month has 4 weeks. Arif wants to save RM 40 in 4 weeks. Farid will save RM 10 every week. So, the money that Farid can spend at school is only RM 10.

\(\frac{\text{RM } 10}{5\text{ days} } = \frac{\text{RM } 2}{\text{ day} }\)

So, Farid can only spend RM 2 in school every day if he wants to save RM 10 every week.

RM 10 x 4 weeks = RM 40

If Farid manages to save RM 10 every week, he will save RM 40 in 4 weeks.