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Friday, September 12, 2014

Financial Literacy Project: Personal Budgeting Exercise

Dear JGSOM and AB MEc Students, In light of the coming actual Financial Literacy Sessions, we will give you a chance to experience what your participants will do next semester. For one month, monitor your financial behavior by religiously recording and updating your transactions. A template will be provided to you. For the coming weeks, watch out for the reflection questions that we will announce. Answering these questions will give you a chance to think about your financial behavior. On October 13, submit your reflection paper in OSCI. Don't forget to have it stamped at the front desk. Continue monitoring your financial transactions. Your financial record (from September, 2014 to January, 2015) will be credited as a requirement for the 2nd Semester. We hope that this exercise will develop into a practice, a habit. Eventually, helping you to effectively manage your resources towards a state of financial well-being.

Here are the instructions for the Personal Budgeting Exercise (PBE): 1. The PBE is a monthly summary of the income generated and incurred expenses for a span of one month (30 days) 2. The PBE already contains expense (or cost) categories and incomes that are divided into 3 parts. Namely, Income 1 (Primary), Income 2 (Secondary) and Extra Income (i.e., from sidelines or irregular income) 3. Both the Expenses and Income tables are divided into two parts - the PROJECTED and the ACTUAL. 4. PROJECTED EXPENSE (or COST) and INCOME is the amount wherein the user estimates the amount he will incur expenses per expense category or generate income per category. 5. ACTUAL EXPENSE and INCOME is the amount wherein the user inputs the actual expenses incurred and the actual income generated for that 30-day period. 6. The PBE also contains both a PIE CHART and HORIZONTAL GRAPH regarding your monthly expenses as a visual representation. 7. Take note that SAVINGS/INVESTMENTS is considered an expense in the PBE 8. Your DAILY RECORDING of EXPENSES will not be in the PBE. Instead, a summary will only be in the PBE. 9. The PBE will then be submitted at the time prescribed by your formator. Good luck, everyone!

All the best,

NSTP PLUS Financial Literacy Cluster

1 comment:

Anonymous said...

Sir, I don't think we were given a template for this... From the post, I got an idea of some elements of the template, however, the information given was not enough for us to be able to make the template completely from scratch. Although it is possible for us to make our own excel file of this, as I know some have done (including me), it was time consuming and it might not be like the template described in the post.