Specific Buy a Kawai piano.

Measurable It costs Rm8000, a monthly saving of

RM1000
Attainable With a monthly saving of RM1000, she
can save RM8000 in 8 month. Her
financial goals is attainable within one
year.
Realistic RM1000 is 3.33% of her income. Her
financial goal is realistic.
Time-bound 8 month

(a) Goals Setting

-Short-term goals
Mrs Chia want to buy a Kawai piano worth Rm8000 within
one year for her daughter. Her monthly income is Rm30,000.
Consumer Mathematics:
Financial Management
PBL

Name: Chia Ke Yin

Seat No: 2
Class: Senior One Red

Teacher: Chok Yen Mui

 Content
Content
Introduction
Financial management process
Evaluating financial status
Creating financial plan
Carrying out financial plan
Reviewing and revising the process
Conclusion
Reference
 Financial Management
Financial management is a process that involves managing
money from sources of income into savings, expenses, protection and
investment. There are five steps in financial management.

Financial Management Process:

 Setting goals
 Evaluating financial status
 Creating financial plan
 Carrying out financial plan
 Reviewing and revising the process
 Evaluating Financial Status
 Assets and liabilities are the benchmarks for evaluating our
financial status. Examples of assets are cash, savings, real estate
investments, fixed deposits, unit trusts or company shares.
 Liabilities are bank loans, credit card debts and other financial
obligations. Besides that, we should know the outstanding
payments such as unsettled rent, utility bills, credit card bills and
others.
 Evaluating our financial status helps us measure our
performance in the effort of achieving our short-term and long-
term financial goals.
(b) Evaluating Financial Status
Mrs Chia’s monthly income is RM30,000 and her
fixed and variable expenses is RM18,750.
To achieve her short-term financial goal, she has to
save RM8000÷8 month= RM1000 per month(3.33% of
her income).
Her goal is realistic and attainable. she will be able
to buy a Kawai piano for her daughter after 8 month.
She has a surplus of RM10,250 which is a positive cash
flow for emergency fund and investement.
 Introduction
Financial management is the business
function concerned with profitability, expenses, cash
and credit, so that the "organization may have the
means to carry out its objective as satisfactorily as
possible;" the latter often defined as maximizing
the value of the firm for stockholders. The discipline is
then tasked with the "efficient acquisition and
deployment" of both short- and long-term financial
resources, to ensure the objectives of the enterprise are
achieved.
Financial management is generally concerned with
short term working capital management, focusing
on current assets and current liabilities, and managing
fluctuations in foreign currency and product cycles,
often through hedging. The function also entails the
efficient and effective day-to-day management of funds,
and thus overlaps treasury management. It is also
involved with long term strategic financial
management.
(c) Creating Financial Plan
Mrs Chia’s Financial Plan
Income and Expenditure RM
Net income
Net salary 30,000
Passive income 0
Total Monthly Income 30,000
Minus fixed savings 1,000
(3.33% of monthly income)
Minus saving for emergency fund 0
Income Balance 29,000
Minus monthly fixed expenses
Housing loan instalment 5,000
Phone instalment 300
Car instalment 600
Insurance premiums 400
Total monthly fixed expenses 6,300
Minus monthly variable expenses
Food and drinks 1,500
Children’s education 10,000
Petrol expenses 300
Telephone bill 300
Utility bills 350
Total monthly variable expenses 12,450
Surplus of income/ Deficit 10,250
 (d)Carrying Out Financial Plan
Mrs Chia’s New Financial Plan
Income and Expenditure RM(Actual) RM
Net income
Net salary 30,000 30,00
Passive income 2000 0
0
Total Monthly Income 32,000 30,000
Minus fixed savings 1,000 1,000
(3.33% of monthly income)
Minus saving for emergency 1,500 0
fund
Income Balance 29,500 1,000
Minus monthly fixed
expenses 5,000 5,000
Housing loan instalment 300 300
Phone instalment 600 600
Car instalment 400 400
Insurance premiums
Total monthly fixed expenses 6,300 6,300
Minus monthly variable
expenses
Food and drinks 1,600 1,500
Children’s education 10,000 10,00
Petrol expenses 300 0
Telephone bill 350 300
Utility bills 400 300
350
Total monthly variable 12,650 12,450
expenses
Surplus of income/ Deficit 10,550 10,250
Evaluoting and Revising the Progress
Mrs Chia has a fixed monthly income of
RM30,000. She has saved RM1,500 for emergency
fund and RM1,000 for monthly savings.
The variable expenses of Mrs Chia’s financial plan
has shown an increase but it is acceptable since there is
still a surplus of RM10,550, which is a positive cash
flow. Mrs Chia also has a passive income of RM2000
which she obtain by selling homemade cake.
In short, Mrs Chia can achieve her goal to buy her
daughter a Kawai piano.
 Conslusion
Mrs Chia spent her income wisely and spent her
money according to her financial plan. She does not
waste money and plan her financial plan ever month.
Through this project, I have learnt how to create a
financial plan and use my money wisely. With this new
knowledge, I believe that i will know how to manage
my money wisely in the future.
Reference
1.What is Financial Management?
https://en.wikipedia.org/wiki/Financial_management
2.Form 4 SPM Mathematics textbook
http://anyflip.com/tfjam/fbyt