Money Management Cycle

MONEY MANAGEMENT:
Managing Personal
Human resources slide 1
Finance
BUSINESS FINANCE- ABM 12
Activity: Quick Poll
I’ve made a budget in the past.

I currently have a budget.

Making budgets is fun.

Write one thing you know or want to know about
“Money Management”
OBJECTIVES
Human resources slide 2
Understand the money
management and its
components.
Analyze and evaluate financial
situation (e.g., compare actual
cash inflows with actual cash
outflows).
Apply the concepts and skills to

real-life scenarios.
Activity: One Question Survey
• You will do a little research to determine the financial
aspirations (goals) of your classmates and think about
ways to budget for those expenses.
• Each team will have a different question to be used to
survey your classmates (each team member has a copy of
the team’s question).
• In these areas, you will survey your classmates and
record the answers (5 minutes).
 When time is called, team members return to your seats,
total your data, and create a labeled pie chart that
represents your data.
 Post the pie charts and have observations about the data
you have collected
Activity: Analyzing Cash Flow – “Tanya’s Finances”
Read and analyze the narrative to get a

picture of Tanya’s financial aspirations
and responsibilities.
TANYA’S FINANCES
After she gets her GED, (General Educational Development (GED) test is a series of
tests that measure the academic skills and knowledge of individuals who have not
completed high school) Tanya is hoping to apply to a 2-year nursing program that
will cost approximately 113,000 a year in tuition, textbooks, and supplies. She
is planning to apply for financial aid and scholarships to help reduce the cost.
In fact, Tanya has already worked on cutting costs. She saves on her rent and
utilities because she has a roommate. Her mother helps reduce childcare costs
by taking Tanya’s daughter three times a week.
Tanya is concerned about her current financial obligations. She wants to
be able to pay her bills and go to school. So, before she continues planning
for the future, Tanya wants to get a better idea of her current financial
situation. It’s time for a cash flow statement.
To create her statement, Tanya identifies the money she earned last
month as a home health care aide (her income) as well as money that
came in from other sources. Her paycheck and other sources of cash are
all part of her cash inflow. Tanya also records her expenses for the last
month. Expenses are also known as cash outflow. Some of those
expenses are fixed, such as her rent and her utilities. Fixed expenses do
not change from month to month. Other expenses are variable. For
example, if her daughter needs over-the-counter or prescription
medication one month, then Tanya’s medical expenses would increase
for that month. For the months where she and her daughter are healthy,
Tanya’s medical expenses would be lower.
When she compares the cash coming in with the cash going out each
month, she gets a clear picture of her finances.
Based on the text how would you define the following
terms:
• cash inflow - refers to the money an individual receives from various sources, such as their salary,
investment income, and rental income.
• cash outflow - is the amount of cash that a business/ individual disburses
• financial obligation - Financial obligation is a requirement to pay money to another

party, such as a loan provider, property owner, or support agency.
• fixed expense - is an expense whose total amount does not change when there is an
increase in an activity such monthly rent or mortgage
• variable expense -
A variable expense is a cost that alters in conjunction with
some type of activity.
Money Management
Money management refers to

the processes of budgeting,
saving, investing,
spending, or otherwise
overseeing the capital usage
of an individual or group.
Activity: Analyzing Cash Flow
•A budget, or spending plan, is used to plan for future spending and
savings. A recent cash flow statement is a useful tool to help you
create your budget.
•Analyze the Cash flow of Tanya
•Did Tanya have more cash flowing in or out last month? Find the
answer
a.Total cash inflows (A) and outflows (B) on Tanya’s statement
below.
b.Calculate the difference between inflows and outflows (C).
• You have 5 minutes to read Tanya’s Cash Flow Statement and do
the calculation on your smartphone calculators or a calculator.
PRESENTATION
• Read about Luis’s finances and
highlight the expenses, income,
and savings information in the
text and
TEAM • Collaborate to complete a
TASK! budget for Luis with the aim of
balancing the A and B
amounts.
• You have 10 minutes call time
limit
Luis’s Finances
Luis Navarro is an assistant installer for a heating and air conditioning

company. He brings in 789,000 a year. He owns a 2012 Ford van that
recently got a new transmission. It gets about 22 miles per gallon. His
commute to work varies, but he typically drives about 15,000 miles
per year. His auto insurance is 25,000 a year.
Luis is single, but he likes to go out with friends. He typically goes out
on Friday and Saturday nights. He never has more than one 500
drinks, and he usually eats dinner before he goes out. Every other
week or so, he goes to a movie or out to a club, buying a 1,250 ticket
or paying a 800 cover charge.
His rent is 15,00 a month, but he lives with two roommates, so they split the utility bills, which total around
10,000 a month. He also pays for a parking permit to keep his van on the street. That costs 6,000 a year.
Luis’s employer pays for his cellular service, but Luis pays 3,500 a month for internet and several streaming
services that run him about 1,500 a month.
Luis is very lucky. His employer provides excellent health insurance. Luis only has a 5,000 co-pay for most
doctor visits. Because he is pre-diabetic, he gets his blood tested annually at his physical. He’s healthy, but
that’s because he eats a lot of fresh foods and he shops at farmers markets. His grocery bill is usually pretty
high. He spends about 15,000 a month on his groceries.
He gets a haircut every month at a discount salon. He needs to keep his hair short for work. The cut costs 800
but he tips 200. He doesn’t spend much on clothes, but he has to buy a new 5,000 uniform for work every 6
months.
Luis is looking forward to getting a raise next year. He’s saving up to get more training in installation and
maintenance. He puts aside as much as he can each month toward the cost of HVAC training.
Rubric for
Creating a Criteria ✔ FEEDBACK
Cash Flow Commendations Recommendations
Statement and All items on the cash flow statement

are listed in the correct category
5
Budget (fixed, variable, occasional).
All calculations are accurate. 5
All items on the budget are listed in 5

the correct category.
Any item without a monetary amount 5

is entered as “0”.
The totals for income and expenses 5

match.
5
All budget calculations are accurate.
PRESENTATION
OF OUTPUT
What was easy
and what was
challenging in the
task?
Do you consider
yourself to be a
spender or a saver
of money?
Why is it important
to know how to
manage money?
Short Quiz:
Go to quizziz.com join
game and enter CODE
THANK YOU!!

Money Management Cycle

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MONEY MANAGEMENT:

I’ve made a budget in the past.

I currently have a budget.

Making budgets is fun.

Apply the concepts and skills to

Read and analyze the narrative to get a

• cash outflow - is the amount of cash that a business/ individual disburses

• financial obligation - Financial obligation is a requirement to pay money to another

Money management refers to

Luis Navarro is an assistant installer for a heating and air conditioning

Cash Flow Commendations Recommendations

Statement and All items on the cash flow statement

Budget (fixed, variable, occasional).

All calculations are accurate. 5

All items on the budget are listed in 5

Any item without a monetary amount 5

The totals for income and expenses 5

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