Basic Concepts and Importance of Financial Management

Samson, Albert B.
Module Writer
Objectives:
At the end of the talk, the participants are
expected to:
1. define financial literacy;
2. recognize the importance of financial
management; and
3. create a financial budget.
Materials:
LCD projector, laptop, papers, and pens
References:
Some Importance of Financial Management
Why Is Financial Management So Important in
Business? | Chron.com. (n.d.). Retrieved from
http://smallbusiness.chron.com/financialmanagement-important-business-57073.html
Financial Management for College Students:
A Web-Based Tool to Teach - Winter 2005 Student
Affairs Online. (n.d.). Retrieved from
http://studentaffairs.com/ejournal/
Winter_2005/
FinancialManagementforCollegeStudents.html
Ten reasons why financial planning is important
| BlueShore Financial. (n.d.).
Retrieved from http://www.blueshorefinancial.com/
ToolsAdvice/Articles/FinancialPlanning/
TenReasonsWhyFinancialPlanningIsImportant/
Reasons to Study Finance. (n.d.).
Retrieved from
http://www.boundless.com/finance/
textbooks/boundless-finance-textbook/introductionto-the-field-and-goals-of-financial-management1/introducing-finance-22/reasons-to-study-finance148-8366/

WHAT IS FINANCIAL MANAGEMENT?

MEANING, IMPORTANCE / SIGNIFICANCE.
(n.d.). Retrieved from
http://hubpages.com/money/financial-managementmeaning-importance-and-significance
Financial Literacy. (n.d.). Retrieved from
http://www.fcacacfc.gc.ca/
eng/financialLiteracy/Pages/home-accueil.aspx
Financial Literacy Definition | Investopedia.
(n.d.). Retrieved from
http://www.investopedia.com/terms/f/financialliteracy.asp

Motivational Activity:
The Price is Right
Directions:
The participants will be grouped into
six with ten members.
The group will guess the price of a
given items.
The price could be nearer to the
original/exact price.
Items:
Grocery (1kl. sugar, 1L vinegar, 1L soy sauce,
10kl. of rice, tasty bread, butter, 1kl. carrots,
1kl. Chicken, 1kl. Pork, 1kl. Tilapia, coffee,
milk, juice, 1kl. onion, 1kl. potato, 1kl.
calamansi, 1kl. garlic)
Main Activity:
Kung ang baon mo ay kanta, ito ay
___________
Direction:
The participants will be group into six
with ten members.
Each group will think of a song that
would describe their baon.
The group will present their song.
Each group will choose their

representative to explain.
Processing Questions:
1. What are the reasons of choosing the
song?
2. What are the common reasons of the
groups?
3. Why are you lacking of your budget?
4. What do you think will happen if you
do not know how to budget?
5. In what ways you can manage your
budget?
Abstraction:
Question: Why do we need to manage our
finances?
There are multiple answers for this question.

First, we need to manage our

finances to avoid over spending.

Second, we need to manage our

finances because it helps us to set our
goals and achieve it.

www.movemequotes.com

-Students should ensure that they are

not spending beyond their means. If
they stick to their budget, they can use
it to finance their dreams.

Third, it can help us during difficult

times.

www.quotationof.com
www.thedigeratilife.com

-By doing so, you can be ready

whenever you need to spend for
something that is important. It means
that you are prepared for any
expenditure and for any profit
distributions if you have business for
example.
-You should try to lower your expenses.
You can ask vendors to lower the price
of the commodity and you can also
reduce the use of energy. These will
help you to avoid over spending.

-Saving money in a wise manner rather

than spending it on things that are not
necessary will help you during financial
difficulties. It can help you during
emergency or for educational purposes.

Fourth, this will increase your

financial understanding.

Sixth, it will improve your health.

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-You can achieve better understanding

of financial matters when measurable
financial goals are set, the effects of
decisions understood, and the effects
are being reviewed, it gives you a new
whole approach to your budget and will
improve your control to your financial
lifestyle. Remember that individuals are
like companies. We all face financial
and investment decisions.

Question: What is financial literacy?

Fifth, financial management

improves our standard of living.

We can define financial literacy as the

possession of knowledge and understanding
of financial matters.

iamcommunitylb.com

Given the good standard of living,

culmination of good health will follow.
A lot of financial stress related
sicknesses will be completely
eliminated or reasonably reduced.

It can also be defined as having knowledge,

skills, and confidence to make financial
decisions.
thursdayidentity.com

-Good decision-making in terms of

finances will bring growth and
development in ones life. This covers
many aspects of life and not only
financial matters.

Knowledge may refer to an understanding of

personal and broader financial matters
Skills could refer to the ability to apply that
financial knowledge in everyday life
Confidence is having the self-assurance to
make important decisions
Responsible financial decisions mean the
ability of individuals to use the knowledge,
skills and confidence they have gained to make
choices appropriate to their own circumstances.

Graphic Organizer

B-alance your expenses

U-nleash frugality
D-raw on financial assistance
G-ain understanding
E-nsure bright future
T-hrow away your stress