What are Expenses?

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What are Expenses and Types of Expenses ?
• Money spend on satisfying your needs or wants is commonly termed as
Expenses
• Types of Expenses are

Rent

Fixed

Fees/Uniform
Expenses

Purchase of
Variable
CD/Burger/Icecream
Fixed Expense v/s Variable expenses
Fixed expenses
• Fixed Expenses are regular and cannot
be changed
• They have set amount
• They are exact amount incurred every
time not depending upon time of
consumption
• Certain amount of Income has to be kept
aside for Fixed expenses every month
• E.g. school fees, Electricity, rent ,emis etc
Variable expenses
• Variable expenses are once in a while
expense as per your desire
• It can change as per your wish
• They are not exact amount incurred
every time and depends your desire
• Variable expenses are incurred as per
your wishes or desire .money from
income need not be kept aside for it .
• E.g. Movie . Icecreams,etc
What is a BUDGET? • Cash Management is how you handle money
coming in and Money going out . This is
referred as “Cash Flows .”
• Given limited income in hand and unlimited
needs ,it is very important to regulate the cash
flow.One best tool is Budget.
• Budget is a statement indicating income on
one hand and expenses on which the income
is allotted on other hand (fixed and variable)
• It indicates money that comes in and money
that goes out in detail, so that one is aware of
given income and expenses incurred and
control them accordingly
• Roadmap to achieve goals. Once you are in
control of your expenses ,you can make
clear ,planned decisions on the best way to
spend your money and make your money
work for you
Building your own Budget

Opportunity to  use your

Budget is quite simple and
decision making skills and
has two main parts : Income
choose how you spend your
and Expenses .
money.

When they are in balance ,or

you have some surplus
The trick is simply to balance left ,then you are on your
the two . way to meeting your goals –
the things that are important
to you. 
 What does Pay
yourself first
Means ? How can
it benefit you?
Important questions to be done in the note book

1. What do you mean by Expenses?

2. Write a short note on Fixed expenses
3.what do you mean by variable money ? Give examples
4. What is a Budget?Explain the term ‘Cash Flow’?
5. Describe about cash management and draw a budget table for a month’s household income and expenditure
 • A bank may be defined as an institution that accepts
deposits, makes loans, pays checks and provides
financial services.
• A financial intermediary for the safeguarding,
What is a Bank ? transferring, exchanging, or lending of money.
• Primary role of banks is connecting those with funds,
such as investors and depositors, to those seeking
funds, such as individuals or businesses needing loans.
• In other words, A bank is a connection between
customers that have capital deficits and customers with
capital surpluses. 
Historically, temples were considered
the earliest forms of banks as they
were occupied by priests and became
a haven for the wealthy.
The earliest Roman laws allowed for
Jews and templers became bankers
the taking over of land in lieu of loan
after the fall of Roman empire. Later
payments that were owed between
Italians became Lending bankers .
debtors and creditors.

The East India Company had

established three banks: Bank of
The first bank of India was the “Bank The Imperial Bank of India was later
Bengal, Bank of Bombay and Bank of
of Hindustan”, established in 1770 and nationalised in 1955 and was named
Madras and called them the
located in the then Indian capital, The State Bank of India, which is
Presidential Banks. These three banks
Calcutta. However, this bank failed to currently the largest Public sector
were later merged into one single
work and ceased operations in 1832.  Bank.
bank in 1921, which was called the
“Imperial Bank of India.”

Government decided to nationalize

the Banks. These banks were
In the year 1994,Government allowed
nationalised under the Banking
some private banks to enter into
Regulation Act, 1949Following it was
banking sector .Some foreign banks
the formation of State Bank of India in
are also operating in India since last
1955 and the other 14 banks were
100 years
nationalised between the time
duration of 1969 to 1991
What does
Bank do??
How to open a
Bank Account
How to deposit
and Withdraw
cash from a bank
What is a Cheque book
?
• A cheque is a mechanism which
allows people to access the fund in
their bank accounts. You can use
this either to withdraw cash or to
transfer funds to some other account
by transferring a cheque.
What are bank account holder’s documents
Details of cheque after filling
Types of
deposits
1. Date: A cheque should be properly dated. Writing a cheque
without a date may enable anyone to put any date and encash it at
their will. 

2. Name: Write the name of the person or organisation who will

receive your cheque in the “pay” line.

3. Cross the cheque: You need to make two parallel lines in the top
left corner of the cheque and write “Account Payee”, if you want the
amount to be withdrawn by a specific person or an organization,
who is having an account in the bank.

4. Account Number: Ensure your cheque has an account number

and the bank address on the cheque.

5. Signature: Put your signature carefully on top of your name in the

cheque as it has to match the signature you provided to the bank
while opening the account.
 A Savings Account is the most basic type of
bank account. It is suitable for small savings,
and money for day to day transactions. This
account gives interest and hence helps your
Types of money grow. It is suitable for all individuals,
salaried people, and students.
Bank
Accounts A Current Account is essentially for
businesses and business transactions. It is
not for saving or investment purposes.
 A fixed deposit is a long-term investment in which you

What are
deposit a large sum of money at once and withdraw it
after a maturity period as chosen by you. The interest
is credited to your account either quarterly or monthly.

Fixed and
Recurring For an RD, you have to select a tenure, which is usually
around one to ten years, as per the bank or institution

Deposits
of your choice. But you do not need to make a one-
time lump sum deposit. You deposit a fixed sum per
month, and earn an interest amount on a per month
basis. Upon maturity, you will receive your total
investment as well as interest. The interest remains
constant all through your investment period.
 What is ATM?
• Automated Teller Machine is a computerized device that
provides card to customers to access their bank accounts
• A device that allows bank card with access to financial
transactions
• It allows customers to access banking services without
any restrictions of limited banking hours , staff or public
holidays
• It is operated using ATM (personal identification card )
provided by the bank
• Customers have to maintain secrecy of the card to ensure
no fraudulent financial transactions happens from their
accounts
• ATM permits withdrawal and deposit of cash at any time .
What is Electronic banking ?