Project Work Group 10

By: MeganRenushree

FreddyJian Wei

IntroductionThe Tan family is currently in a bad financial situation. How

can we help them?

~ Theme 2 : How can the Tan family save money?~ Theme 4 : How can the children in the house help their parents?

Theme 2

What is the Tan family’s spending habit?

Health

Cable

TV

Broad

band

Hire Pur

chas

e

Schoo

l Bus

Utilitie

s

Fast

Food

s

Hand P

hone

Bills

Allowan

ce

Tuitio

n

Starb

ucks

coffee

Groce

ries

Schoo

l Fee

s

Tran

spor

t0

50

100

150

200

250

300

350

400

450

350

88 80

12195

300

80

140

320300

140

400

22

100

Education

Health

Hire Purchase

Recreation

Utilities & Groceries

0% 5% 10% 15% 20% 25% 30% 35%

The Tan Family spent mostly on education, utilities and groceries.

Why do you think the Tan family spends too much?

It is because they are used to having small luxuries. Mr Tan is spending more than he can earn, so he should cut down on spending.How can the Tan Family increase their income?Mrs Tan can take on a job to help increase their income. Lucy also can take on a part-time job to help her parents instead of dropping out of school to earn more money.

How can the Tan Family save money? Give some practical saving tops and examples on how they can save.

Mr Tan can cut down on one large cup of coffee a day and buy only a medium cup once a week. Mrs Tan can cut down on shopping and stop buying new shoes for the meanwhile. Instead of using the dryer, Mrs Tan can also hang the clothes out to dry.

Mr Tan and Mrs Tan:

James:James can walk, if his school is nearby, take public bus or ask his father todrive him to school. He also can stop sleeping with the air con and use anelectric fan or he can open the windows when he sleeps. James can also stopeating fast food every Sunday, as fast food is expensive.

Steven:

Steven should stop playing PSP and computer games all day and study instead to raise his grades, so he does not need to go for tuition, or help his mother with the household chores so his mother can have more time to take on a job. He should cut down on his allowance as $30 is too much. Steven can also stop sleeping with the air con and use an electric fan or he can open the window when he sleeps. He also can stop eating pizza every Sunday.

Lucy:

As Lucy has a boyfriend, she will most likely to text and call her boyfriend more often, increasing her monthly bill. She should not have a boyfriend as she is still young, and concentrate on her studies to improve her Mathematics and English, so her parents need not send her for tuition. Lucy also can cut down on her allowance, as $50 is too much for her. Like her siblings, Lucy can also stop sleeping with the air con and use an electric fan or she can open the window when

she sleeps. If her school is close by, Lucy can walk to school instead of taking the bus. She should also stop eating potato chips and crackers at home, as they are unhealthy.

If they have any spare change in their pockets, they can put in a tin for emergencies.

How much of Mr Tan’s salary is contributed to his CPF (in percentage)?20% of Mr Tan’s salary is contributed to his CPF. This is the usual rate to contribute.What is the name of the CPF scheme to repay the housing loan?The name of the CPF scheme to repay the housing loan is known as Public Housing Scheme.Do you think it is wise to spend beyond your means by using credit card to pay first, knowing that you are unable to fully settle the bill at the end of the month? Calculate the amount of interest Mr Tan may have to pay and the number of months he may need to complete paying the bill if he is paying the minimum sum monthly.I do not think it is wise, as the interest rate will go up every month. So in the end, you pay more than you spent at first. Mr Tan will have to pay $31 over 8 months to fully settle his bill.

Before, sweets were about 5 cents and a bottle of soft drink was about 50 cents. A movie ticket was $1, a bowl of noodles was about 80 cents and chicken rice was about $1. Now, sweets are 20 cents to 50 cents, soft drinks cost about $1.50 and movie tickets at student prices are $8. A bowl of noodles and chicken rice can cost about $2.50. Prices have increased due to inflation.

Interview your parents and ask them what they could buy with $1 when they were kids? In your group, compile a list of at least 5 items. Use this list and find out the prices of these items today. Why is there a difference?

Theme 4

What can the children do to help their mother?

The children can help their mother by doing chores so she can take on a job to help increase their income.

What can the children do to help their father?

Lucy can take on a part-time job, and ask her father to register under Financial Assistance.

Why do you think Steven and Lucy behave as such? Are they bad citizens?

I think it is because Steven and Lucy are more used to a more luxurious lifestyle, as Mr Tan may have had a better income before. But, they are not bad citizens.

How can Mr and Mrs Tan help their children understand the financial situation in the house?They should talk to their children personally and explain the situation to them.What can the children do to reduce the family’s financial burden?The children can take less allowance. Lucy should not drop out of school, as it will affect her future, even though she is able to earn more money now. Steven should stop playing PSP and computer games and concentrate on his studies, so he does not need to have tuition. Lucy and Steven can study with friends or ask their teacher for remedial instead of tuition. They also should stop eating fast food and pizza every Sunday.

ConclusionFinancial management is important for the Tan Family because they are currently going through a financial crisis. It is very important to save money, so as to be prepared for any emergencies in the future.

Bibliography:

www.cpf.gov.sg http://www.citibank.com.sg/global_docs/microsite/web_usecreditwisely/index.htm

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