Investigate tools and strategies for effective financial management, including:

Question 1

What is monitoring?

Answer 1

observe and check the progress or quality of (something)

Question 2

What is record keeping?

Answer 2

keep accurate records of the money coming
into and out of your account

Question 3

How are monitoring and record keeping beneficial and effective?

Answer 3

• So we know where our money is going
• So we have more money for things we really want
• Taxes and charges, bank fees, rent, mortgage payments and bills quickly take a large proportion
  of the money we earn.

Question 4

What are budgets?

Answer 4

Budgeting is the process of creating a plan to spend your money.

Question 5

How are budgets beneficial and effective?

Answer 5

• make sure your spending is not greater than your income.
• Helps you be organised
• Stress-free

Question 6

What is savings?

Answer 6

The portion of income stored.

Question 7

What are superannuation plans?

Answer 7

Super is the money stored for retirement.

Question 8

How are superannuation plans beneficial and effective?

Answer 8

Over your working life, you pay small fragments into a fund and then when you retire, you receive either a large lump sum or a pension.