Lesson Notes By Weeks and Term - Junior Secondary School 3

TERM: 2ND TERM

SUBJECT: BUSINESS STUDIES

CLASS: JSS 3

WEEK 1                                                          

Topic:  Personal Finance

Content: 

1. Meaning of Personal Finance
2. Sources of Finance for Individuals
3. Uses of Personal budget
4. Meaning of Scale of Preference
5. Modesty and its Attributes

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

EVALUATION
1. What is personal finance?

2. Define a budget

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
3. Contentment
4. 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.

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

READING ASSIGNMENT

Business Studies for Junior Secondary Schools, Book 3 by O.A Lawal et al pages 94-97

GENERAL REVISION QUESTIONS

1. What is an invoice? 
2. Give five items that can be contained in an invoice.
3. Who issues an invoice?
4. Differentiate between an invoice and a pro forma invoice.
5. Differentiate between a debit note and a credit note.

WEEKEND ASSIGNMENT

1. The management of one’s personal money is termed as _____   A.  budget  B. scale of preference  C. personal finance  D. consumption
2. All these are sources of fund that may be available for an individual except____  A. loan from bank  B. trade credit   C. issue of shares  D. personal savings
3. The arrangement of needs in order of  importance is known as _____ A. personal finance B. choice   C. budget   D,. scale of preference
4. Governments prepare budget _____  A. monthly  B. yearly   C. quarterly D. bi-annually
5. The estimate of income and expenditure is called_____   A. scale of preference B. consumption  C. budget   D. personal finance

THEORY

1. What is personal finance?
2. Enumerate five essential items in a personal budget
3. State two uses of  a budget.