Business Studies - Junior Secondary 3 - Personal finance

TERM: 2^ND TERM

WEEK THREE

Class: Junior Secondary School 3

Age: 14 years

Duration: 40 minutes of 5 periods each

Date:

Subject: BUSINESS STUDIES

Topic: PERSONAL FINANCE

SPECIFIC OBJECTIVES: At the end of the lesson, pupils should be able to

I.)  Explain the meaning of personal finance

II.) Source of finance for individual.

III.) Describe Consumer and choice

IV.) Describe Scale of preference - modesty, attributes

V.)  State the uses of personal budget

VI.) Manage personal funds and keep records of expenditure

VII.)  Identify good that are necessity                              -      

INSTRUCTIONAL TECHNIQUES: Identification, explanation, questions and answers, demonstration, videos from source

INSTRUCTIONAL MATERIALS: Videos, loud speaker, textbook, pictures,

INSTRUCTIONAL PROCEDURES

PERIOD 1-2

NOTE

PERSONAL FINANCE

Personal finance refers to the management of an individual's financial resources, including income, expenses, investments, and savings. It involves making financial decisions and plans to achieve financial goals, such as saving for retirement, buying a home, or funding education.

Sources of Finance for Individuals

1. Income: The primary source of finance for most individuals is earned income from employment or self-employment.
2. Savings: Accumulated money set aside from income that is not spent immediately.
3. Investments: Putting money into assets such as stocks, bonds, mutual funds, or real estate with the expectation of earning a return.
4. Loans: Borrowing money from financial institutions (e.g., banks, credit unions) or individuals, which must be repaid with interest.
5. Gifts and Inheritances: Receiving money or assets from family members or others.

Consumer Choice

Consumer choice refers to the decisions made by individuals or households regarding the selection of goods, services, or experiences to satisfy their wants and needs. It involves evaluating alternatives based on preferences, budget constraints, and available information.

Scale of Preference - Modesty and Attributes:

I.) Scale of Preference: This refers to the ranking of wants or desires in order of their importance to an individual. It helps prioritize spending decisions based on preferences and available resources. 

II.) Modesty: This suggests a prudent or humble approach to spending, emphasizing frugality and avoiding unnecessary extravagance.

III.) Attributes: Refers to the characteristics or qualities of goods or services that consumers consider when making purchasing decisions. These may include price, quality, brand reputation, functionality, and personal preferences.

Uses of Personal Budget

1. Helps individuals allocate income towards savings, investments, and expenses according to priorities.
2. Enables tracking and controlling spending to avoid overspending and ensure financial stability.
3. Facilitates setting and achieving financial goals, such as saving for emergencies, education, or retirement.
4. Provides a framework for making informed financial decisions based on available income and priorities.

Managing Personal Funds and Keeping Records of Expenditure

Effective management involves:

1. Budgeting: Creating and sticking to a budget to allocate funds for various expenses and savings goals.
2. Tracking Expenses: Recording all expenditures to understand where money is being spent and identify areas for potential savings.
3. Saving and Investing: Allocating a portion of income towards savings and investments to build wealth over time.
4. Debt Management: Managing debt responsibly by making timely payments and avoiding excessive borrowing.

EVALUATION: 1. What is the meaning of personal finance?

2. Identify the source of finance for individual.
3. Define consumer choice
4. Mention 5 uses of personal budget

CLASSWORK: As in evaluation

CONCLUSION: The teacher commends the students positively