Consumer Competence 3 Management Systems PDF

Consumer Competence 3 Management Systems Learning Intentions 1. Recall the importance of a good home management system 2. Identify skills needed for a good home management system 3. Identify the different stages of financial literacy i.e. ‘money as your grow’ 4. Discuss...

Consumer Competence 3 Management Systems Learning Intentions 1. Recall the importance of a good home management system 2. Identify skills needed for a good home management system 3. Identify the different stages of financial literacy i.e. ‘money as your grow’ 4. Discuss in pairs factors that influence spending and how to spend wisely 5. Define money management 6. Understand the types of income 7. Differentiate statutory and voluntary deductions 8. Explore essential and non-essential income expenditure 9. Analyse and create budgets 10. Explore the advantages of budgeting 11. Carry out a detailed study of savings and credit What does FRM stand for? FRM stands for family resource management Definition: the skilful handling and use of available resources to meet the demands and needs of the family and achieve goals; wise management of available resources… Purpose: To make wise and Types of Management Systems: efficient use of resources Open system = involves the use of external support & resources to help the family manage e.g. childcare To assist individuals and families to achieve goals Close System = does not involve the use of external support & To improve quality of resources to help the family manage i.e. the family are self-sufficient family life e.g. growing their own vegetables Components of the Management System 3 components: - Inputs – what does in - Throughputs – what happens - Outputs – the outcome  Closer look at the Management System Components Inputs Throughputs Outputs Resources e.g. time/money Planning e.g. meal plan Evaluate Demands e.g. school/childcare Organise e.g. shopping list Feedback Implement e.g. groceries; stick to budget Exam Q: Joan and David have 3 children, Sean (6), Lilly (8) and Tom (12). Sean and Lilly both attend the local primary school (starting at 9.20am) while Tom attends secondary school (starting at 8.50am) in the neighbouring town which is a 20minute bus drive. Both Joan and David work full time earning a combined weekly income of €1,458; they also receive €150 from child benefit per week. Joan works full time, starting at 9.00am while David job shares, starting at 9.30am. Complete a weekly management system for Joan and David that focuses on the wise management of food and time  Efficient use of FRM Factors that influence FRM - Time - Money - Transport - Age of family members - Family size Examples of Efficient use of FRM - Budgeting - Shopping lists - Meal plans - Household work – delegate jobs Role of Effective Communication in FRM - Wise decision making - Avoid conflict - Democratic - Ensures all parties are heard Money Management Money management is planning our spending Money management is wisely so that we have enough for our needs and influenced by: avoid debt. - Income - Making decisions about your money - Lifestyle - Planning your spending to cover essential and non- - Personal likes/dislikes essential expenses - Family size - Planning your spending to cover planned and - Age and stage in life unplanned expenses - Health - Record keeping - Evaluating your spending Home Filing System: - Record keeping - Tract expenses - Evaluate spending - Focuses savings Budgeting A budget is the actual plan for spending and saving. A good budget balances income (the money we have) with expenditure (what we spend). Income: - Gross Income: the amount of money your earn - Net Income: gross income – deductions = net income i.e. take home pay Expenditure: Tax Credits = the - Essential e.g. household bills, rent/mortgage, food money you are not - Non-essential e.g. holidays – considered luxuries taxed on Deductions Reminder: Net Income: gross income – deductions = net income i.e. take home pay Statutory Deductions Voluntary Deductions Pay as your Earn (PAYE) – income tax paid to the Pension government to run the country Health insurance Trade union membership Pay Related Social Insurance (PRSI) – used to pay savings social welfare payments e.g. unemployment benefit Universal Social Charge (USC) – government tax to pay off debt  Budgeting Breakdown Budget Template Advantages of Budgeting: More security―less financial worry. 10% Overspending on impulse buys is 10% 25% less likely. 5% Areas of overspending become 5% 5% 15% obvious and can be cut down on. 10% 15% It sets a good example for children. Money can be set aside for Mortgage/Rent Household Bills Food major bills and seasonal Education Travel Clothing spending Medical Savings Other Budgeting Sample… Savings… Advantages of saving: Where to save: - Safe a d secure - Banks - Interest earned = free - Post office money - Credit union - Sets a good example - Reduces financial Factors to consider when choosing where stress to save: - Plan for unplanned - Interest earned expenses - Ease of access - Security Credit Definition: Other Payment Methods: ‘buy now pay later’ - Cash - Debit Card - Cheque Types of Credit: - Credit card What are the advantages & disadvantages of the payment - Bank loan methods listed above? - Bank overdraft - Hire purchase agreement Quality & Safety Symbols: Explore the following Quizlet to learn and master the key quality and safety symbols for consumer competence 102. Record the defintions for EACH symbol https://quizlet.com/ie/322239798/quality-marks-and-safety-symbols-flash-cards/