Name: ________________________________________ Grade Level: ________________

Section: ________________________________________ Date: ______________________

LEARNING ACTIVITY SHEET#1

MONEY MANAGEMENT PHILOSOPHIES
Background Information for Learners
Every person is doing capital budgeting, business or investment in life. As a Senior High School
student, you still rely on your parents or guardian for finances. While you are still young, it is very
important to have enough knowledge of the different ways of managing resources in the future. As a
student, there will be a lot of opportunities that will come your way. You will, later on, meet a rewarding
and fulfilling job or will have your own business to manage. Wouldn’t it be nice if you contain the
awareness of properly managing your future assets? Through it, you can avoid financial illiteracy and can
take effective and efficient personal financial decisions.

Managing personal finance is when an individual gains an understanding of proper utilization of

funds, efficient planning and controlling financial transactions, budgeting and proper financial decision-
making to meet one’s short term or long term goals. Being knowledgeable of it, an individual can determine
and predict assets based on past and future performance. Also, he can properly assess the capability of
generating future cash flows.

To give an example, the following successful individuals had accurately managed their personal
finances therefore, they were able to increase their net worth and become one of the most successful people
in our time.
Ranking Business Net Worth
1. Henry Sy SM Investment Inc. $ 14.4 B
2. John Gokongwei, Jr. Universal Robina Corp. $ 5.5 B
3. Andrew Tan Alliance Global Group $ 4.5 B
Inc.

4. Lucio Tan Philippine Airlines Inc. $ 4.3 B

5. Enrique Razon Jr. International Container $ 4.1 B
Terminal Services Inc.

6. George Ty Metropolitan Bank and $4B

Trust Company
7. Aboitiz Family Aboitiz Equity Ventures $ 3.6 B
8. Jaime Zobel de Ayala Ayala Corporation $ 3.5 B
9. David Consunji DMCI Holdings Inc. $ 3.2B
10. Tony Tan Caktiong Jollibee Foods Corp. $ 2.2 B
Source: Forbes.com (Forbes Magazine : Philippine Richest Individuals 2015)
 Moreover, the following are the nine (9) money management philosophies in managing personal
finance (Keown 2010).

1. The Basic Protection is Knowledge

The first step to getting your personal finances under control is to have a clear understanding of
where you are now. Determine and list your assets, liabilities and expenses. Yes, it may be too
small now, but it would soon grow when you will later on have your job or business. You must find
a way or method on how to properly determine your cash inflows and outflows by simply listing
down on your notes or making your balance sheet. Once you understand its importance, you will
learn to appreciate what needs to be done to get there, how much you’ll spend to earn, how much
you’ll need to save and when you will be able to achieve such goals.

2. Nothing Happens without a Plan

Financial planning is not limited to companies alone. Individuals should also practice financial
planning to achieve the set goals and objectives. One must learn to practice budgeting to properly
account one’s resources. In the very basic level, budgeting is easy. All you have to do is look at
what you make, look at what you are spending, and look at how much to be put away for the rainy
season.

3. The Time Value of Money

Individuals must see the importance of investment. One may invest his resources through debt
reduction, bonds, banks, pension plans, active businesses, real estate, stock market and mutual
funds. Do not forget to select the best investment alternative by determining its face value and
future value before deciding which investment scheme is to be utilized. Through time value of
money, one can determine how much will be the return value one should get in entering an
investment scheme.

4. Taxes Affect Personal Finance Decisions

Before entering into an investment, learn to analyze first the impact of taxes in it.
Almost 1/3 of the company’s or individual’s income will go to taxes, thus; learn to compare the
returns of your potential investment after tax basis.

5. Stuff Happens, or the Importance of Liquidity

Remember to liquidate your assets (cash and cash equivalents). Liquidating assets will allow the
individual to cover unexpected needs and expenses. Not liquidating assets will lead the individual to
a fund irregularity and chaos.

6. Waste Not, Want Not – Smart Spending Matters/Live below your means This is the only way to
ensure you save and grow your net worth. Most of us spend beyond our means because we fail to
distinguish needs versus wants. There are times that we are impulsive in buying items that we think
are our needs. But the truth is, it is only our wants, not needs that we spent for. Therefore, one must
identify which goals should be prioritized to avoid unnecessary expenses.
 7. Insure your needs
It provides another margin of safety. Most importantly, insurance is not a primarily vehicle for
creating wealth, merely protecting it. One must protect his resources from event risks including
natural calamities by securing insurance. We must accept the fact that life has always a way of
throwing unexpected curves, so it is also an advantage if an individual ensures his financial health
and not be interrupted by the things that cannot be foreseen. While it is true that no one wants the
worst things to happen, we still need to be prepared to handle such and not sacrifice our finances
and assets.

8. Risk and Return Go Hand in Hand

One must have to understand that to gain a higher return, he must face certain risks. A concrete
example of this philosophy is when an individual invests in the stock market, e.g., Jollibee Foods
Corporation. It is very risky to invest now that we are experiencing a pandemic, but, after this, a
high return will take place due to business’ high demand.

9. Mind Games and Your Money

Now that you already know the different money management philosophies, it is now time to adopt
or practice managing your personal finances. Yes, many of these strategies entail order and control,
but, once you come to a decision, make sure that you will stick to it. It may be hard to adjust to a
new lifestyle to properly managing your personal finance, but you have to take note that long term
financial goals require short term sacrifices. The secret is to always find a way to discipline yourself
in managing your personal finances to meet your long term objectives in life while still enjoying
life to the fullest without sacrificing all your resources.

Learning Activity1: “NEEDS versus WANTS”

1. Think of at least five (5) items that you had bought recently. Determine if those are needs or wants
by checking the appropriate box provided below and write
2. Reflect on your answer.
Item Needs Wants
1.
2.
3.
4.
5.
Reflection:__________________________________________________________________
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Quiz#1 ESSAY. Directions: In not less than three (3) paragraphs, answer the question below.

If you have PHP1,000,000 today which you can invest for the next 10 years, where will you put it and
why?

Performance Activity#1 Directions: Ask a family member or a friend of their most recent investment.
Describe the basic features of this instrument by answering the following questions:
1. Who is the issuer of the investment?

2. Can the investment be liquidated immediately at a known price?

Rubric Scoring for Quiz#2 ESSAY and Performance Activity#2

5 points 4 points 3 points 2 points 1 point Total/

Comments
Knowledge Learner is Learner is Learner is
Learner has a Learner does
about the very knowledgea partly little not have
topic knowledgeabl ble about the knowledge
knowledgeabl knowledge
e about the topic. e about theabout the about the
topic. topic. topic. topic.
Organization Organization Organizatio n OrganizationOrganizatio Needs
of thoughts of thoughts is of thoughts is of thoughts is
n of thoughts improvement
excellent. very good. good. is somewhat
good.
Grammar No errors at With one With 2-3 With 4-5 With 6
all. error in errors in errors in or
grammar. grammar. grammar. more errors in
grammar.
Spelling No misspelled With one With 2-3 With 4-5 With 6
word at all misspelled misspelled misspelled or
word words words more
misspelled
words

Total Points: _______________

 Reflection
Use the space provided below to express what have you learned from the activities.
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LEARNING ACTIVITY SHEET # 2
Socio-economic factors affecting business and
industry
Background Information for Learners

Socio-economic factors are important characteristics which mostly influence consumers. These factors are
associated with the quality of life and determine the behaviors, tastes, preferences, attitudes and lifestyles
of people living within a society. These economics factors have a high impact on businesses, whether big
or small. This is because the consumers are often the heart of businesses and tend to affect the growth of
all ventures.
These socio – economic factors are:
Income capacity of consumer - It determines how much they can spend on a certain product. If
consumers have access to high incomes from employment and personal business ventures, then they are
more likely to spend on luxurious products. On the other hand low income earners may not be able afford
basic commodities, let alone the luxurious products. It is thus essential to consider income capacities of
the consumers before setting up business. This factor should affect where the entrepreneur sets up shop
and the target clients he chooses.
Occupation – it is largely related to the income they earn. Low skilled laborers who work in lowly jobs
cannot earn the same as corporate managers. Entrepreneur must carry out research on the occupations of
consumers. This influence the decision to venture into certain businesses with a specific target at
consumers who have good occupations or lowly jobs.
Economics growth – Positive economic growth rates will help the business grow. If a country
experiences high economic growth then the consumes may have better access to incomes and also the
middle class and upper class may grow. This may also attract more investors and increase employment
rates.
Educational Level – It influences the type of occupation a person can get. Consumers with higher
education tend to be skilled and also have better jobs and incomes as compared to those without
education. An entrepreneur may have to work harder to fulfil the demands of these consumers as
compared to when dealing with less educated folks who are less demanding.
The theory of consumer behaviour describes how consumers make decisions on what to buy. A consumer
aims to maximize the satisfaction he/she derives from the use of goods.
Marginal Utility - is the added satisfaction that a consumer gets from having one more unit of a good or
service
Total Utility – refers to overall or total satisfaction that a consumer experiences by consuming a certain
amount of goods or services.
Formula:
 Marginal Utility – Change in total utility/ Change in number of units consumed
Change in total utility is done by subtracting the total utility of the current consumption and the previous
consumption.
Change in number of units that have consumed is done by subtracting the number that is currently
being consumed from a previously consumed amount.
LEARNING ACTIVITY#2
Directions/Instructions: Look at the pictures below. What can you say about them? Describe the
similarities and differences and answer the guide questions below.

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Guide Questions:

a. What is the socio-economic factor/s affecting the business shown in the pictures?

b. Why do you think this is/are important in the business?

Rubrics for scoring:

Criteria Rating
Content and ideas are organized in clear, 1 2 3 4 5
logical manner
The writing directly addresses the topic and
provides adequate discussion supporting the 1 2 3 4 5
main idea
The writing employs standard grammar
conventions, proper punctuations and word 1 2 3 4 5
of choice
The sentences are well constructed with
varied structure 1 2 3 4 5
Total ( 20 points)
 Quiz #2
Directions: Search the word on the puzzle below, and complete the following sentence below.
WORD HUNT
B O B S H K M O K E M L B M K O

U P S F T L U R L L A T U I P P

S U T C H K T S M B R L Q P A S

I U U B N O L F F A K K O R D B

N A K T A Z C D F T E R S O S E

E N S E R T B A C I T L E D V N

S H B G E N V E A U H S K U U T

S B N L S K S R N S U A M C D R

A D J M I F T I H K G F E T H E

O K J K R U T Y A R H C D C L P

S H K P P Y K Q U Y I R L B J R

T R A P R O C E S S L M O A N E

B H R O E N K H U O L A C L M N

Y H U J T T P R O F I T A B L E

C H A G N E F U G T I U I D E U

C O R N E R S T O N E S C B M R

Corner Stones Market

Enterprise Product
Profitable Opportunity
Entrepreneur Process
Business Suitable

_____________________________ and selection are like _________________________ of

___________________________. In a sense, identification and selection of a suitable business
opportunity serves as the trite saying “well begun is half done”. But it is better said than done. Because, if
we ask any intending _______________________________________ what product or project she will
select and start as an ________________________, the obvious answer he/she would give is one that has
a good market and is _________________. But the question is how could one know if we do have a
product to sell? Whose profitability will we determine without selling the _________________? There are
also other problems we must consider. While trying to identify the ______________________ product or
project, the intended entrepreneur passes through a certain __________________________.
 Performance Activity # 2
“Create your own business”
Directions. Create your own business and answer the following :
1.History of the business
(Example: Founder of the business,when does it started)
2.Nature of the business
(Example: What Industry does it belong,how did you come up to that kind of business)
3.The strengths and weaknesses of the business
(Examle: Your edges against your competitor,possible treat to your business)
4.Future plans of the business
(Example: Indicate your mission,vision,core values)
5.Survival strategy of the business
(Example: Tactics and strategy to be considered)
6. Benefits of consumer on their business
(Example: What are those factors that will benefits your customers) Answers Here:
1. _____________________________________________________________________
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_____________________________
2. _____________________________________________________________________
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_____________________________
3. _____________________________________________________________________
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_____________________________________________________________________ _________.
4. _____________________________________________________________________
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_________________.
5. _____________________________________________________________________
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 _____________________________________________________________________
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_____________.

6. ___________________________________________________________________________
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Rubric For Scoring

Insufficient Developing Proficient Above Average

5 points 10 points 15 points 20 points

Quality of Answer was Piece was Piece had little Piece had no
writing written in an written in an style style
extraordinary interesting style Gives Gives no New
some
style and
Very Somewhat new information
informative and informative and information but n and very
well organized well organized poorly poorly
organized organized

Grammar Virtually no Few spelling A number of So many

, Usage & spelling, and spelling, spelling,
Mechanics grammatical punctuations punctuation or punctuation and
grammatical
errors errors, minor grammatical
errors that it
grammatical errors
interferes
errors
with