Managing Finances Effectively

Question 1

Write down 6 tips for effective money management?

Answer 1

Shop around for good deals
Plan & stick to a budget & monitor it regularly
Open, check and pay bills
Put money to one side for emergencies, treats & luxury items
Prioritise needs over wants
Plan meals

Question 2

Write down 6 signs a family is mismanaging its finances?

Answer 2

No planned budget
Impulse buying & unchecked credit card
Slipping into debt
Spending on what you can't afford
No needs prioritisation
Bills & statements unchecked

Question 3

Write down 5 strategies for effective money management?

Answer 3

Discuss problems with family & friends
Review spending habits & buying behaviour
Design a personal budget
Establish regular saving habits
Seek professional financial advice

Question 4

What are 5 consequences of poor money management?

Answer 4

Debt
Inability to achieve goals
Loss of home
Relationship difficulties
Stress & illness

Question 5

Why do you need to formulate a budget?

Answer 5

To avoid debt. Save money for emergencies.

Question 6

How do you formulate a budget?

Answer 6

Gather all bills & paperwork. Work out your total income and expenditure. Plan how much money you need each week or month.

Question 7

6 examples of needs?

Answer 7

Food
Clothing
Transport
Electricity
Water
Shelter

Question 8

6 examples of wants?

Answer 8

Eating out
Holidays
Fashionable clothing
Bigger house
Better car
Big TV

Question 9

5 strategies to manage money more effectively?

Answer 9

Keep a check on credit card, prioritise needs over wants, money aside for emergencies, planned budget to stick to, open + check bills + statements.