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  • Project Arthik Gyanfor NFLAT

    a FIAI imitative to supportFinancial Literacy drive of NCFE

    for Class 8th, 9th

    Project Arthik Gyanfor NFLAT

    a FIAI imitative to supportFinancial Literacy drive of NCFE

    & 10th Students

  • 1Chapter 1: Money Matters: Smart Goals And Financial Analysis

    Money : A current medium of exchange in the form of coins and banknotes; collectively.

    Which 5 things you would like to buy right away, if you had

    the money?

    Chapter 1: Money Matters: Smart Goals And Financial

    A current medium of exchange in the form of coins and banknotes;

    Which 5 things you would like to buy right away, if you had

  • 2Asset: Items owned by a person.

    Liability: Money owed by a person.

    Net-Worth = Assets Liabilities

    Identify the assets and the liabilities of Mr. ABC and calculate his net

    Item Amount Assets

    Gold / Jewellery 1000000 1000000

    Laptop 40000 40000

    Car 500000 500000

    Home Loan 1500000

    Loan Taken From A Friend

    10000

    Total Assests / Liabilities 1540000

    Net Worth 30000

    Net Worth

    1

    Identify the assets and the liabilities of Mr. ABC and calculate his net-worth.

    Assets Liability

    1000000

    40000

    500000

    1500000

    10000

    1540000 1510000

  • 3Smart Goals And Financial Analysis

    Not SmartSpecific I want to go

    somewhere on my winter vacations.

    Measurable I need to save some money for going on a trip.

    Achievable I will arrange all the money myself.

    Realistic I will start saving the amount required 2 months before leaving for the vacation.

    Timely I will save money sometime soon.

    1

    Smart Goals And Financial Analysis

    Not Smart SmartI want to go somewhere on my winter vacations.

    I want to visit Goa on my winter vacations.

    I need to save some money for going on a trip.

    I need to save Rs.3000 for going on a trip.

    I will arrange all the money myself.

    I will request my parents to give me Rs.2000 & for rest I will use my savings.

    I will start saving the amount required 2 months before leaving for the vacation.

    I will start saving Rs.200 monthly from my pocket money.

    I will save money sometime soon.

    I will save Rs.200 per month for next 5 months.

  • 4Chapter 2: Budgeting: Balancing the Means and the Ends

    Income: It is the money earned/gained. Eg; Your parents giving you Rs.500 monthly as pocket money.

    Income are of two type:

    1. Active Income: You are receiving Rs.500 regularly as your monthly pocket money.

    2. Passive Income: You received Rs.500 from your parents on your B'day.

    Expenditure: It is the money that you spend on your needs andWants.

    Eg: Rs.100 you spent for having a pizza.

    Expense are of two types:

    1. Regular Expense: That you regularly or daily spend like eating daily in canteen.

    2. Lump Sum Expense: That you spend once on your Birthday Party.

    Chapter 2: Budgeting: Balancing the Means and the Ends

    Your parents giving you Rs.500 monthly as pocket money.

    You are receiving Rs.500 regularly as your monthly pocket

    You received Rs.500 from your parents on your B'day.

    It is the money that you spend on your needs and

    That you regularly or daily spend like eating daily in

    That you spend once on your Birthday Party.

  • 5Expenses can be Discretionary Or Non-Discretionary.

    Discretionary Expense: Its your choice that you want to spend money for eating at canteen. You can also bring your lunch.

    Non-Discretionary Expense: Its a expense that you have to spend out of necessity. You spend Rs.10 daily for taking a bus for attending school.

    Deficit: Deficit is a lack OR an excess of expenditure over earning.

    Eg; Instead of Rs.500 you spend Rs.600 on a pizza (Rs.100 borrowed from anyone), so your deficit is -Rs.100 (your pocket money Rs.500 your deficit amount)

    Surplus: Surplus is the amount that remains when use or need is satisfied.

    Eg; If you along with your 4 friends ordered 4 Burgers, Cold Drinks etc. at total cost of your order will be Rs.500. Now, instead of ordering everything separately, you ordered 4 combos which includes Burger, Cold Drinks, Toys etc. For Rs.400 only. In this case Rs.500 Rs.400 = Rs.100 money you still have with you. This amount is your SURPLUS, where you utilized your smartness to

    Expenses

    Discretionary.

    Its your choice that you want to spend money for eating at

    Its a expense that you have to spend out of necessity. You spend Rs.10 daily for taking a bus for attending school.

    Deficit is a lack OR an excess of expenditure over earning.

    Instead of Rs.500 you spend Rs.600 on a pizza (Rs.100 borrowed from anyone), so Rs.100 (your pocket money Rs.500 your pizza cost Rs.600 = - Rs.100,

    Surplus is the amount that remains when use or need is satisfied.

    If you along with your 4 friends ordered 4 Burgers, Cold Drinks etc. at Mc'Donalds. The total cost of your order will be Rs.500. Now, instead of ordering everything separately, you ordered 4 combos which includes Burger, Cold Drinks, Toys etc. For

    Rs.400 = Rs.100 money you still have with you. This where you utilized your smartness to fulfill your need.

  • 6Small Amount creates Valuable Interesting &

    Saving is a healthy habbit, which will reap benefits in the long run

    Why...?

    Because you have short term goals like buying a book, toy etc.

    & you have long term goals like saving for buying a bicycle, video game etc.

    Savings

    nteresting & Nice Gifts

    , which will reap benefits in the long run

    like buying a book, toy etc.

    like saving for buying a bicycle, video game etc.

  • 7Cash-Flow statement : It is a record of your income and expenditure, i.e. Income Expense = Cash Flow

    Importance Of Cash Flow Statement:

    It tells us the amount of money remaining with us after deducting our all expenses from our income.

    Eg; Pocket Money (Rs.500) Pizza Cost (Rs.100) = Rs.400 (Cash Flow)

    Now, you can utilize Rs.400 for any of your need.

    Cash Flow Statement

    It is a record of your income and expenditure, i.e.

    It tells us the amount of money remaining with us after deducting our all

    Pizza Cost (Rs.100) = Rs.400 (Cash Flow)

    Now, you can utilize Rs.400 for any of your need.

  • 8Budget : Budget is a planning of your expenses keeping in mind your income/savings.

    E.g. You ordered a pizza of Rs.200 keeping in mind that your monthly pocket money is Rs.500.

    Opportunity Cost : Opportunity cost is what you give up every time you make a choice. Re sources are limited and wants are endless. There is no way we can have it all. So each choice to buy something is also a choice of what to give up.

    E.g. If you ordered a pizza of Rs.500 but due to some reason its delivery got delayed. Due to delay, you got a discount of Rs.200 on your pizza. So, in this case you paid only Rs.300 instead of Rs.500 then your Opportunity Cost is Rs.200 here.

    Budget

    Budget is a planning of your expenses keeping in mind your

    You ordered a pizza of Rs.200 keeping in mind that your monthly

    Opportunity cost is what you give up every time you make a choice. Re sources are limited and wants are endless. There is no way we can have it all. So each choice to buy something is also a

    If you ordered a pizza of Rs.500 but due to some reason its delivery got delayed. Due to delay, you got a discount of Rs.200 on your pizza. So, in this case you paid only Rs.300 instead of Rs.500

    is Rs.200 here.

  • 9Delayed Gratification: With long-term goals, you must be willing to give up something you want now to get something better/bigger in the future.

    Eg; You have received a pocket money of Rs.500 & want to order a pizza of Rs.700. Either you can ask your parents for more money or you can order something else like burger for Rs.100 & in coming next month you can have a pizza of Rs.700 as you already have saved Rs.400 this month.

    Instant Gratification: When you satisfy a want immediately, it gives you instant gratification.

    Eg; You have received a pocket money of Rs.500 & want to order a pizza of Rs.700. Now, you will ask your parents for Rs.200 more immediate so that you can have that pizza of Rs.700.

    Then in next month, your pocket money will be Rs.300 only (as Rs.200 you already have taken for Pizza).

    term goals, you must be willing to give up something you want now to get something better/bigger in the future.

    You have received a pocket money of Rs.500 & want to order a pizza of Rs.700. Either you can ask your parents for more money or you can order something else like burger for Rs.100 & in coming next month you can have a pizza of Rs.700 as you already have saved Rs.400 this

    When you satisfy a want immediately, it gives you

    You have received a pocket money of Rs.500 & want to order a pizza of Rs.700. Now, you will ask your parents for Rs.200 more immediate so that you can have that pizza of Rs.700.

    Then in next month, your pocket money will be Rs.300 only (as Rs.200 you

  • 10

    Chapter 3: Understanding Insurance

    Insurance: Life Insurance is a Noblest concept invented by the Government which is a way of managing risks of Human Life.

    Types Of Insurance:

    A. Life Insurance : Term Insurance, Whole Life, ULIP, Traditional, Retirement Policy etc.

    B. General Insurance: Motor, Property, Health (Mediclaim) etc..

    Insurance policies can be divided on the basis of two risks, i.e.

    A. Pure Risk : Where the coverage involves the risks rel