Podcast
Questions and Answers
What is the main purpose of Pay as you Earn (PAYE)?
What is the main purpose of Pay as you Earn (PAYE)?
Which type of deduction is considered a statutory deduction?
Which type of deduction is considered a statutory deduction?
What financial benefit is associated with saving in a bank?
What financial benefit is associated with saving in a bank?
Which of the following best describes the Universal Social Charge (USC)?
Which of the following best describes the Universal Social Charge (USC)?
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What is a key advantage of budgeting?
What is a key advantage of budgeting?
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What is one of the factors to consider when choosing where to save?
What is one of the factors to consider when choosing where to save?
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Which of these is an example of credit?
Which of these is an example of credit?
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Which statement reflects a disadvantage of using credit cards?
Which statement reflects a disadvantage of using credit cards?
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What does FRM stand for in the context of management systems?
What does FRM stand for in the context of management systems?
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Which of the following is NOT a component of a management system?
Which of the following is NOT a component of a management system?
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Which type of management system uses external support and resources?
Which type of management system uses external support and resources?
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What is the purpose of family resource management?
What is the purpose of family resource management?
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Which stage best describes the financial literacy phrase 'money as you grow'?
Which stage best describes the financial literacy phrase 'money as you grow'?
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Which of the following best defines money management?
Which of the following best defines money management?
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What is a common example of essential income expenditure?
What is a common example of essential income expenditure?
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Which of the following does NOT qualify as a type of income?
Which of the following does NOT qualify as a type of income?
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What is the purpose of effective communication in financial resource management (FRM)?
What is the purpose of effective communication in financial resource management (FRM)?
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Which of the following factors does NOT influence money management?
Which of the following factors does NOT influence money management?
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What is the difference between gross income and net income?
What is the difference between gross income and net income?
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Which of the following is an example of efficient use of financial resource management?
Which of the following is an example of efficient use of financial resource management?
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Which aspect is crucial for maintaining a budget?
Which aspect is crucial for maintaining a budget?
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What is the main goal of effective record keeping in a home filing system?
What is the main goal of effective record keeping in a home filing system?
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Which of the following is a non-essential expenditure?
Which of the following is a non-essential expenditure?
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Which of the following factors can influence whether an expense is essential or non-essential?
Which of the following factors can influence whether an expense is essential or non-essential?
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Study Notes
Consumer Competence 3 - Management Systems
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Learning Intentions:
- Recall the importance of a good home management system.
- Identify skills needed for a good home management system.
- Identify the different stages of financial literacy (money as you grow).
- Discuss factors influencing spending and wise spending habits.
- Define money management.
- Understand different types of income.
- Differentiate statutory and voluntary deductions.
- Explore essential and non-essential income expenditure.
- Analyse and create budgets.
- Explore the advantages of budgeting.
- Carry out a detailed study of savings and credit.
FRM (Family Resource Management)
- Definition: The skillful handling and use of available resources to meet family demands and needs, achieving goals through wise resource management.
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Purpose:
- Make wise and efficient use of resources.
- Assist individuals and families to achieve goals.
- Improve the quality of family life.
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Types of Management Systems:
- Open system: Involves external support and resources (e.g., childcare).
- Closed system: Family relies on its own resources and avoids outside help (e.g., growing own vegetables).
Components of the Management System
- Inputs: Resources like time, money, and demands like school and childcare.
- Throughputs: Activities like meal planning, organizing, and sticking to budgets.
- Outputs: Assessment (evaluation) and feedback.
Closer Look at Management System Components - Example
- Inputs: Resources (time/money), demands (school/childcare)
- Throughputs: Plans (meal plan, shopping list), implementing the plan (groceries) sticking to budget.
- Outputs: Evaluate the plan and provide feedback.
Efficient Use of FRM
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Factors Influencing FRM:
- Time
- Money
- Transport
- Age of family members
- Family size
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Examples of Efficient FRM Use:
- Budgeting
- Shopping lists
- Meal plans
- Delegating household work
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Effective Communication in FRM:
- Wise decision-making
- Avoiding conflict
- Democratic approach ensuring all parties are heard.
Money Management
- Definition: Planning spending wisely to meet needs and avoid debt.
- Influencing Factors: income, lifestyle, personal preferences, family size, age and life stage, health.
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Components:
- Making decisions about money
- Planning essential and non-essential expenses
- Planning planned and unplanned expenses
- Record keeping
- Evaluating spending (e.g., home filing system for recording expenses)
Budgeting
- Definition: A plan for spending and saving, balancing income and expenditure.
- Income: Gross (total) income less deductions equal net income (take-home pay).
- Expenditure: Essential items (bills, food) and non-essential (holidays).
- Tax Credits: Money not taxed (e.g., child benefit).
Deductions (from income)
- Statutory deductions: Required by law (e.g., income tax, PRSI).
- Voluntary deductions: Chosen by the individual (e.g., pension, health insurance).
Budget Advantages
- More security, less financial worry.
- Reduces impulse buys
- Identifies areas for overspending.
- Sets a good example for children.
- Money set aside for major bills/seasonal spending.
Savings...
- Where to save: Banks, post office, credit unions.
- Factors to consider: Interest earned, ease of access, security.
- Advantages of saving: Safety, interest,sets a good example, reduces financial stress, plan for unplanned expenses.
Credit
- Definition: Buy now, pay later.
- Types: Credit cards, bank loans, bank overdrafts, hire purchase agreements.
- Other payment methods: Cash, debit card, cheque
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Description
This quiz delves into the primary concepts of family resource management, focusing on home management systems, financial literacy, and budgeting techniques. Participants will explore essential skills and factors that influence wise spending habits and effective money management. Assess your understanding of income types, deductions, and the significance of budgeting in achieving financial goals.
