Close sidebar
Skip to content

PERSONAL FINANCE

Personal finance means the ways an individual manages his personal money and other assets. An individual may obtain funds from the following sources:

  1. Personal savings
  2. Loans from banks
  3. Borrowing from friends and relatives
  4. Trade credit or credit facilities from suppliers

 

USES OF PERSONAL BUDGET

A budget is an estimate of income and expenditure at a particular period of time. A budget may be prepared by an individual, business organizations and government. Governments prepare budgets annually.

However a personal budget can be used for the following:

  1. It helps in planning how to live within one’s income
  2. It discourages extravagant spending
  3. It shows how much is to be spent on each item of expenditure
  4. It enables family members to know their financial status
See also  CITIZENSHIP

 

SCALE OF PREFERENCE

This is the arrangement of an individual’s needs in order of priority.]This means the most needed item comes before luxuries.

 

MODESTY

Modesty is a situation whereby an individual lives within his/her income without being extravagant in spending. The attributes of modesty are the following:

  1. Living within one’s means
  2. Prudence
  1. Simplicity

Modest living will encourage self-control, prudent spending and discourage an individual from corrupt practices such as stealing, fraud, drug trafficking and bribery

 

CONSUMPTION AND CHOICE

Consumption means the amount of goods and services people buy and use. Everyone has needs and wants, but in most cases the money at hand is not always enough to buy all these needs, hence, an individual makes choice. Choice is the decision one makes among the items needed.

See also  Drug abuse

 

PREPARATION OF AN INDIVIDUAL BUDGET

The common items which are included in an individual’s personal budget are:

  1. Food
  2. House rent
  3. Medical care
  4. Education
  5. Clothing
  6. Personal care products
  7. Electricity and water rates
  8. Transport
  9. Religious commitments e.g. tithes and offering
  10. Miscellaneous

 

See also

national unity and integration

honesty

citizenship

socialization

values

SUBSCRIBE BELOW FOR A GIVEAWAY

Building & maintaining an elearning portal is very expensive, that is why you see other elearning websites charge fees. Help to keep this learning portal free by telling mum or dad to donate or support us. Thank you so much. Click here to donate

Leave a Reply

Your email address will not be published.

error: Content is protected !!