Grade 7 Training manual 2017
EMS: Basic Financial literacy
EMS Educators
Term 3
TEACHING FINANCIAL LITERACY BETTER
TRAINING RESOURCES TO BE USED DURING THE TRAINING
National Curriculum Statement: Curriculum and Assessment Policy Statement: EMS Senior
Phase Grade 7 – 9
Textbooks as used by the teacher for Grade 7
Laptops / Mobile Phones / Tablets (E-Learning Component)
Calculators (Basic calculators and not necessarily scientific calculators)
Pen (black and red), pencil, ruler, eraser, scissors, A4 papers, newsprint, Koki pens, flip
charts
Above All,
“Take the attitude of a student. Never too big to ask questions;
never know too much to learn something new”
… Og Mandino
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EMS: Basic Financial literacy
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EMS FRAMEWORK AND BROAD
TRAINING OUTCOMES
After the completion of these training modules, participants are expected to be able to …
MODULE: ONE
•
•
Define basic accounting concepts
Explain income and expenses
MODULE: TW0
•
•
Bugets
Savings
® Infused into the training outcomes, is the e-learning/e-pedagogy component where
teachers will be exposed to ways of implementing and using the digital space to
enhance the teaching of EMS
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EMS: Basic Financial literacy
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MODULE 1
INTRODUCTION TOT FINANCIAL LITERACY
MODULE OUTCOMES
Participants will be able to demonstrate and understand:
•
the basic accountng concepts
•
income and expenses
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EMS: Basic Financial literacy
ECONOMICS AND MANAGEMENT SCIENCES: FINANCIAL LITERACY
LESSON PLAN 1: ACCOUNTING CONCEPTS
Subject: EMS
Grade: 7
Educator(s) Signature:
Topic: Accounting concepts
Date:
HOD Signature:
Term: 2
Week: 2- 6
Duration: 5 weeks
Prior content knowledge:
Link with next lesson:
Learners general knowledge
Budgets
Content:
Vocabulary/Important words:
Accounting concepts
In training manuel
Aims and Objectives of the lesson
To explain and teach the accounting concepts to the learners. Use examples in practice to bring
the theory and practice together.
ASSESSMENT STRATEGY:
Formal
X
Informal
Form of assessment:
Assessment tool:
Formal assessments
Memo
X
Evidence of assessment
Teacher:
Learners
TEACHER’S ACTIVITIES:
LEARNERS’ ACTIVITIES:
Explain concepts
Mark each activity with learners
Activity 1.1 – 1.7
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EMS: Basic Financial literacy
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RESOURCES: Training manuel and text books
Teacher’s comments/reflection:
HOD input: monitoring and support:
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EMS: Basic Financial literacy
IMPORTANT CONCEPTS AND DEFINITIONS
CONCEPT
CAPITAL
DEFINITION
Money or other property that the owner invested in his business so
that the business can start, for example money he saved, vehicles
(eg a truck) or even equipment (eg a computer).
ASSETS
Property owned by a business that can be converted to cash
(money) and that lasts a very long time, for example land and
buildings, vehicles, equipment and money (bank).
LIABILITIES
Money the business owes (debt) to other people or other
businesses, eg a bank loan.
INCOME
Money earned by the business for eg selling products or for the
rendering of a service.
EXPENSES
These are costs that the business incur to be able to do business.
It can be payment for services that the business needs or costs
when buying items that are used up in the business.
The difference between Income and Expenses can either be a Profit or a Loss.
PROFIT
When income is MORE than expenses.
LOSS
When expenses are MORE than income.
BUDGETS
A plan on how planned income is spend. The business plans
ahead where to get his income and how to spend it (for eg.
expenses).
SAVINGS
When the business sets aside money (eg in a bank) for future use.
BANKING
Banks operate in the banking sector. Banks are financial
institutions that safeguard the money of businesses or lend money
to businesses.
TRANSACTION When two parties (buyer and seller) take action. The one buys and
the other sells.
FINANCIAL
Transactions must be recorded daily in the "books" of a business.
RECORDS
This is called keeping of financial records.
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Activity 1.1: Accounting concepts
Read the clues on the following page and look for the answers in the following word block.)
L F X Q
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F C N C Q E
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A S M G V X N C Z
S C O X
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A B R V E S U O L
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EMS: Basic Financial literacy
HINTS:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Property owned by a business that can be converted to cash (money) and that lasts a
very long time, for example land and buildings, vehicles, equipment and money (bank).
Banks operate in the banking sector. Banks are financial institutions that safeguard the
money of businesses or lend money to businesses.
A plan on how planned income is spend. The business plans ahead where to get his
income and how to spend it (for eg expenses).
Money or other property that the owner invested in his business so that the business can
start, for example money he saved, vehicles (eg a truck) or even equipment (eg a
computer).
These are costs that the business incur to be able to do business. It can be payment for
services that the business needs or costs when buying items that are used up in the
business.
Transactions must be recorded daily in the "books" of a business. This is called keeping
of financial records.
Money earned by the business for eg selling products or for the rendering of a service.
Money the business owes (debt) to other people or other businesses, eg a bank loan.
When expenses are MORE than income.
When income is MORE than expenses.
When the business sets aside money (eg in a bank) for future use.
When two parties (buyer and seller) take action. The one buys and the other sells.
Activity 1.2: Accounting concepts
Find the concept (from column B) that best suits the definition (from column A). Only write the
correct letter next to the question number, e.g., 14 P.
1
2
3
4
5
6
7
8
9
10
11
12
13
COLUMN A
Transactions must be recorded daily.
Property owned by a business that can be
converted into cash.
When expenses are more than income.
Money the business owes other
businesses.
When two parties take action. The one
buys and the other sells.
The costs that the business incur to be able
to run its business.
Money earned by the business e.g. for
rendering a service.
Money or other property that the owner
invested in his business so that the
business can start.
Financial institutions that safeguard and
lend out money to businesses.
When the business sets aside money for
future use.
A plan on how to spend planned income.
Banks operates in the ... .
When income is more that expenses.
A
B
COLUMN B
Financial records
Transactions
C
D
Budget
Income
E
Banking
F
Capital
G
Expenses
H
Loss
I
Banking sector
J
Assets
K
L
M
Liabilities
Savings
Profit
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IMPORTANT CONCEPTS AND DEFINITIONS: Formal
assessment
ANSWER SHEET OF
GRADE
20
Find the concept (from column B) that best suits the definition (from column A). Only write
the correct letter next to the question number, e.g., 1.6 G.
1.
COLUMN A
1.1 When two parties (buyer and seller) take action.
The one buys and the other sells.
1.2 When Expenses are MORE than income.
1.3 These are the costs that the business incur to be
able to do business. It can be payment for services
that the business needs or costs when buying items
that are used up in the business.
1.4 Transactions must be recorded daily in the "books"
of a business. This is called keeping of … .
1.5 Money or other property that the owner invested in
his business so that the business can start, for
example money he saved, vehicles (eg a truck) or
even equipment (eg a computer).
A
COLUMN B
Financial records
B
C
Capital
Loss
D
Transactions
E
F
Profit
Expenses
(5 x 2 = 10)
2. Define the following concepts:
2.1
2.2
2.3
2.4
2.5
Assets
Income
Liabilities
Budget
Savings
(5 x 2 = 10)
TOTAL: 20
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INCOME AND EXPENSES
CONCEPT
PERSONAL
INCOME
PERSONAL
EXPENSES
STATEMENT
OF NET
WORTH
FINANCIAL
WORTH
DEFINITION
Money that a person earns and uses in his daily live.
All the costs that you incur in to live.
A statement of your financial worth at a specific period.
A person's "wealth" is measured by deducting his liabilities (debt)
from his assets (property).
[Total Net Worth = Total Assets – Total Liabilities]]
SURPLUS
When income is more than expenses.
DEFICIT
When expenses are more than income.
WAGES
Are paid to a worker at the end of a work week.
SALARIES
Are paid to a worker at the end of a month.
GOVERNMENT Money the government gives to people to help them financially,
GRANTS
e.g. child support, pension or disability grants.
TYPES
PERSONAL
INCOME
PERSONAL
EXPENSES
Practical examples
•
•
•
•
•
•
•
•
•
•
Wages or Salaries (money for work done)
Interest received (money that you receive for investments)
rent income (money you receive for e.g. renting out your
house.
Government grants
Groceries
Water
Electricity
Rent expense
Clothing
etc
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Activity 1.3: Income and Expenses
1
2
R
3
4
5
C
6
7
T
8
9
L
S
T
10
I
11
S
Across:
1. This is an
example of a
government
grant.
Down:
10. Are paid to a
worker at the
end of a
month.
2. Money you receive
from investments are
called ... received.
8. This is an
example of
personal
expenses.
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EMS: Basic Financial literacy
5. Money that a
person earns
and uses in his
daily live are
called ... .
11. A statement of
net ... is your
financial worth
at a specific
period.
7. All the costs that
you incur to live
a called personal
... .
3. A person's "wealth" is
measured by
deducting his
liabilities (debt) from
his assets (property)
and is called ... worth.
9. Money the
government
gives to people
to help them
financially.
11. Are paid to
workers at the
end of a work
week.
4. When income is more
than expenses.
6. When expenses are
more than income.
Activity 1.4: Personal income and expenses
Find the concept (from column B) that best suits the definition (from column A). Only write the
correct letter next to the question number, e.g., 13 M.
1
2
COLUMN A
All the costs that you incur to live a called
personal ... .
Money that a person earns and uses in his daily
live are called personal ...
A
COLUMN B
groceries
B
Surplus
3
Money the government gives to people to help
them financially.
C
Income
4
Money you receive from investments are called
interest... .
D
Deficit
5
This is an example of a government grant.
E
Salaries
6
This is an example of a personal expense.
F
Government grants
7
When income is more than expenses.
G
Wages
8
When expenses is more than income.
H
Received
9
Are paid to a worker at the end of a month.
I
Disability grant
10
Are paid to workers at the end of a work week.
J
Net
11
A person's "wealth" is measured by deducting his
liabilities (debt) from his assets (property) and is
called financial ….
K
Expenses
12
A statement of … worth is your financial worth at
a specific period. ‘
L
Worth
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Activity 1.5: Personal Income and expenses
The following is a list of all the things in Susan’s room:
Bed
Clothes
CD player with CD’s
Cell phone
Bed lamp
Bedding
Computer
Worth
350
1 500
350
1 200
50
500
3 000
Susan has R300 in her bank account. She owes her mother R200. She owes her brother R50
for a CD that she bought from him. She owes the school’s tuck shop R120.
Calculate Susan’s Net Worth by completing the following Statement of Net Worth:
Susan
Statement of Net Worth as on ...................................... (date)
ASSETS
LIABILITIES
NET WORTH (Surplus or Deficit?)
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Activity 1.6: Personal income and expenses
1. John Smith wants to know from you what his Financial worth is. Use the following
information to draw up his Statement of Net worth.
John owns a house worth R780 000. He also owns a vehicle worth R120 000. He has a
mortgage bond on his house of R630 000 and still owes ABSA bank R90 000 for his vehicle.
His furniture in his house is worth R60 000. His clothing is worth R14 000. He has R2 540 in his
current bank account. He owes Edgars R3 100 for clothes. His tablet is worth R6 000 and his
cell phone is worth R3 000.
John
Statement of net worth as on ...................................... (date)
ASSETS
LIABILITIES
NET WORTH (Surplus or Deficit?)
2.
Answer the following questions:
2.1
Identify John’s biggest asset.
2.2
Identify John’s biggest liability.
2.3
Calculate how much John has paid off on his vechicle so far.
2.4
John wants to buy another vehicle to the value of R230 000. He will have to loan money
from ABSA to buy this vehicle. Predict if ABSA will grant him this loan or not and
motivate why you feel this way.
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PERSONAL INCOME AND EXPENSES: Formal assessment
ANSWER SHEET OF
GRADE
40
1.
Find the concept (from column B) that best suits the definition (from column A). Only write
the correct letter next to the question number, e.g., 1.6 H.
COLUMN A
1.1 All the costs that you incur to live.
A
COLUMN B
Net worth
1.2 A statement of your financial worth at a specific
period.
B
Income statement
1.3 A person’s total assets – total liabilities.
C
Personal expenses
1.4 When expenses are more than income
D
Surplus
1.5 Are paid to a worker at the end of a month.
E
Salaries
F
Deficit
G
Statement of net
worth
2.
Define die volgende Concepts:
2.1 Financial worth
2.2 Government grants
3.
You are appointed as the financial consultant of Susan Wilson. Use the
following information to answer her questions:
[5 x 2 = 10]
(3)
(2)
[5]
Susan owns a house worth R1 500 000. She aslo owns a vehicle worth R350 000. She has a
mortgage bond on her house to the value of R180 000 and still owes ABSA bank R20 000 on
her vehicle. Her furniture in the house is worth R230 000. Her clothes and jewelry are worth
R125 000. She has R89 000 in her current bank account. She owes Edgars R12 000 for
clothes. Her tablet is worth R8 000 and her cell phone is worth R6 000. She still owes Vodacom
R10 000 for the tablet and cell phone.
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EMS: Basic Financial literacy
3.1 Susan wants to know from you what her financial worth is. Draw up her Statement of Net
Worth to calculate this.
Susan Wilson
Statement of Net Worth as on ...................................... (date)
ASSETS
LIABILITIES
NET WORTH (Surplus or Deficit?)
3.2 Identify Susan’s biggets asset.
(14)
(2)
3.3 Identify Susan’s biggets liability.
(2)
3.4 Calculate how much Susan already paid off to date on her house.
(3)
3.5 Susan wants to buy another house to the value of R600 000. She will have to apply for
another laon at FNB Bank. Predict if FNB Bank will grant her the loan or not. Motivate
why you feel that way.
(4)
[25]
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BUSINESS INCOME AND EXPENSES
CONCEPT
INCOME
EXPENSES
TYPES
INCOME
Current income
Sales
Rent income
Interest on
current account
Interest on fixed
deposit
Commission
income
TYPES
EXPENSES
Material costs
Cost of sales
Repairs
Rent expense
Interest on
overdraft
Interest on loan
Salaries
Wages
Trading licence
Consumable
goods
Insurance
Postage
Packing material
Fuel
Stationery
Telephone
Water and
electricity
DEFINITION
Money earned by the business for e.g. selling products or for the
rendering of a service.
These are costs that the businessincur to be able to do business. It
can be payment for services that the business needs or costs when
buying items that are used up in the business.
DESCRIPTION
Money received by the business for services rendered, e.g. cutting of
hari (hair salon).
Money received for the selling of trading stock.
Money received when the business rents out its land and buildings to
someone else.
Interest received on the current (cheque) account of the business.
Interest received on the fixed deposit invested in a bank.
Income received for sales on commission basis.
DESCRIPTION
The costs (expenses) a service business incur when rendering it’s
service, e.g. shampoo in a hair salon.
The value of trading stock (cost price) that was sold.
Costs of repairs to vehicles, equipment etc.
The cost to rent an additional office, building or additional land.
Interest that the business pays on an overdraft in the bank.
Interest that the business pays on e.g. a mortgage bond.
Cost of labour, usually managers, that is paid to them at the end of
each month.
Cost of labour that is paid weekly.
Cost when obtaining a licence to operate your business.
Cost of items used when trading, e.g. Handy Andy used to clean the
shop.
Costs to insure land and buildings, vehicles and equipment, so that it
can be replaced in case of a fire.
The cost to poste parcels, courier costs and the costs of stamps for
letters.
Cost of materials used for packaging goods e.g. boxes.
Costs for diesel, petrol and oil for vehicles.
Costs of pens, pencils, rubbers, paper, invoice books, etc.
Costs of telephone and cell phone accounts.
Costs of water and electricity of the land and buildings.
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Activity 1.7: Business income and expenses
1.
Indicate if the following accounts are an expense or an income. Make a CROSS
the appropriate block.
ACCOUNT NAME
Bv Water and electricity
1
Current income
2
Repairs
3
Material costs
4
Stationery
5
Interest on current account
6
Wages
7
Interest on overdraft
8
Commission income
9
Consumable stores
10 Postage
EXPENSE
×
(×) in
INCOME
2. Group the following accounts under the headings Income and Expenses in the
following table:
Sales; Trading licence; Cost of sales; Rent income; Telephone; Fuel; Salaries; Interest on
fixed deposit; Insurance; Packing material; Rent expense.
INCOME
EXPENSES
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3. In each of the following transactions, identify the reason why cash (money) was
received or cash (money) was paid. Use the correct accounting name.
TRANSACTION
Ex Pay the month’s rent.
1
Receive R1 200 from ABSA on our fixed deposit invested at
ABSA.
2
Receive R4 500 from Peter Pratt for the rent of an office in
our building.
3
Pay the municipality R450 to renew the licence to do
business.
4
Pay Total R800 for petrol.
5
Receive R260 from our client for cutting her hair.
6
Pay R15 000 per cheque to Mr Coetze for his labour this
month.
7
Pay Outsurance R890 to insurance the building.
8
Pay CNA per cheque for rulers, pens and rubbers.
9
Pay R450 vir Susan vir haar Weeks se werk.
10 Receive R350 from our client for trading stock she bought
from us.
ACCOUNT NAME
Rent expense
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EMS: Basic Financial literacy
BUSINESS INCOME AND EXPENSES: Formal
assessment
ANSWER SHEET OF
35
GRADE
1.
Find the concept (from column B) that best suits the definition (from column A). Only write
the correct letter next to the question number, e.g., 1.6 H.
COLUMN A
1.1 Interest the business pays on an overdraft
account.
1.2 Money earned by the business for e.g. selling
products or for the rendering of a service.
A
COLUMN B
Commission income
B
Interest on overdraft
1.3 Money received when the business rents out its
land and buildings to someone else.
C
Packing material
1.4 Income received for sales on commission basis.
D
Income
1.5 Costs of materials used for packaging goods, e.g.
boxes.
E
Interest on current
account
F
Expenses
G
Rent income
2.
(5 x 2 = 10)
Indicate if the following accounts are expenses or income. Write only the word ‘income’ or
‘expense’ next to the question number ons your answer sheet, e.g. 2.6 expense.
2.1
2.2
2.3
2.4
2.5
Wages
Current income
Insurance
Fuel
Postage
(5 x 1 = 5)
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3.
Group the following accounts in a table under the headings Income and
Expenses.
Sales; Repairs; Salaries; Interest on fixed deposit; Cost of sales
(5 x 2 = 10)
3. In each of the following transactions, identify the reason why cash (money) was
received or cash (money) was paid. Write the correct accounting name next to the
question number on your answer sheet, e.g. 4.6 Sales.
Transactions:
4.1 The business pays R580 interest on its mortgage bond to Standerd Bank.
4.2 The business pays R120 to Pick and Pay for Handy Andy and Sunlight liquid to clean the
kitchen of the business.
4.3 Pay R650 to Revlon for shampoo and other hair care products needed in the hair salon.
4.4 The business receives R290 from his client for cutting and blow drying her hair.
4.5 The business pays R190 for invoice books, receipt books and black pens from CNA.
(5 x 2 = 10)
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MODULE 2
MODULE OUTCOMES
Participants will be able to:
• Understand budgets
• Understand savings
!
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ECONOMICS AND MANAGEMENT SCIENCES: FINANCIAL LITERACY
LESSON PLAN 2: BUDGETS
Subject: EMS
Grade: 7
Educator(s) Signature:
Topic: Bugets
Date:
HOD Signature:
Term: 2
Week: 7-8
Duration: 2 weke
Prior content knowledge:
Link with next lesson:
Accounting concepts
Savings
Content:
Vocabulary/Important words:
Personal and business budgets
In training manuel
Aims and Objectives of the lesson
To explain and teach budgets. Use examples in practice to make it easier for the learners.
ASSESSMENT STRATEGIES: Formal
X
Informal
Form of assessment:
Assessment tool:
Formal assessments
Memo
X
Evidence of assessment
Teacher:
Learners:
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TEACHER’S ACTIVITIES:
LEARNERS’ ACTIVITIES:
Explain personal and business budgets
Mark each activity with the learner
Activity 2.1 – 2.3
RESOURCES: Traninig manuel and text books
Teacher’s comments/reflection:
HOD input: monitoring and support:
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BUDGETS – PERSONAL AND BUSINESS
CONCEPT
RECEIPTS
PAYMENTS
BUDGETS
SURPLUS
DEFICIT
DEFINITION
Money earned by the business and all other moneys received
from other sources (e.g. investments).
All costs the business incur to do business as well as any other
payments that must be made, e.g. to repay a loan.
A plan on how planned income is spend. The business plans
ahead where to get its income and how to spend it (e.g. on
expenses)
When RECEIPTS are more than PAYMENTS.
When PAYMENTS are more than RECEIPTS.
FORMAT OF A BUDGET
Name of the business:
Cash Budget for the period .................... to ..........................
RECEIPTS
*Sales and/or Current income
*Interest Receive
*Dividends, etc.
TOTAL RECEIPTS
PAYMENTS
*Trading stock bought
*Material costs
*Insurance, etc.
TOTAL PAYMENTS
Surplus/Deficit
Bank Starting Balance
Bank Closing Balance
xxx
xxx
xxx
XXX
xxx
xxx
xxx
XXX
xxx
xxx
xxx
XXX
xxx
xxx
xxx
xxx
xxx
xxx
XXX
xxx
xxx
xxx
6 EASY STEPS
Step 1:
List all the Receipts and calculate their total.
Step 2:
List all the Payments and calculate their total.
Step 3:
Calculate the Surplus/Deficit with the following calculation:
Receipts – Payments
Step 4:
Write in the Bank Starting Balance (it will be given to you by
Step 5:
Calculate the Bank Closing Balance by using the following
calculation: Starting balance + Surplus OR Starting balance – Deficit
Step 6:
This closing balance is the starting balance for the next month.
your teacher).
*These Receiptets and Payments will differ from Activitiy to Activitiy.
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Activity 2.1 Personal budget
You receive R50 pocket money from your parents each month. Every week end you
wash the cars in the neighbourhood. You make R80 every month doing this. You go to
the movies once a month and it costs R40 for the movi , cool drink and pop corn. You
spend R10 per week at the school’s tuck shop. You owe your sister R100 that you will
pay back over a 4 month period at R25 per month.
You saw a beautiful pair of sneakers in the shop. It costs R450. You decide to save for it.
You only have R120 in your bank account on 1 May 2017.
1. Draw up your Cash Budget for the period 1 May 2017 to 30 June 2017.
2. Answer the following questions:
2.1 Calculate the amount of money in your bank account at the end of June 2017?
2.2 Calculate the amount of money that you are short to buy the sneakers?
2.3 Determine how many months it will still take if you proceed as always, before you can afford
the sneakers. Show your calculations.
2.4 You don’t want to wait that long. Suggest what you could do to buy it faster.
1. Your Budget
Cash Budget for the period 1 May 2017 to 31 June 2017
MAY
JUNE
RECEIPTS
TOTAL RECEIPTS
PAYMENTS
TOTAL PAYMENTS
Surplus/Deficit
Bank Starting Balance
Bank Closing Balance
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Activity 2.2 Personal budgets
Marnus just finished school and got a job in Cape Town. He will earn R3 000 every
month in this job. He decided to study part time. These studies will cost R700 per
month. He will stay at his Aunty and must pay her R800 per month to stay there. He
will take the train to work and the train ticket wil cost him R450 per month. He will
keep out pocket money of R300 per month. His cell phone cost is usually R100 per
month. During June he will have to spend R500 on textbooks. The rest of his money he
wants to save to buy a car. His parents gave him R3 000 and it is currently in his bank
account.
1. Draw up a Cash Budget for the period 1 June 2017 to 31 July 2017.
2. Answer the following questions:
2.1 Identify the amount of money Marnus will have in his bank account at the end of July 2017.
2.2 Calculate the possible growth/decline in his money from 1 June to 31 July 2017.
2.3 Marnus are interested in a car that costs R25 000. Calculate how long it will take hom to
save if his expenses (payments) stay constant, as calculated in July.
2.4 Predict what will happen to Marnus’s cash if he decides to buy clothes to the value of
R1 000 during July. Show your calculations in your prediction.
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1. Marnus’s Budget
Cash Budget for the period .................... to ..........................
JUNE
JULY
RECEIPTS
TOTAL RECEIPTS
PAYMENTS
TOTAL PAYMENTS
Surplus/Deficit
Bank Starting Balance
Bank Closing Balance
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Activity 2.3 Business budget
Your friend heard that you know how to draw up a budget. She asked you to help her in
drawing up a budget for her dog salon, Frenchy Dog Parlour for the months of June and
July 2014. She gives you the following information.
She has R4 200 in her business bank account at the May 2014.
She pays the following every month: Rent for the shop of R1 500 per month. Water and
electricity is usualy about R550 per month. She pays one worker R450 per week. The
products she uses to render her service costs about R600 per month. She places and
advertisement once a month in the newsletter of the local school. It costs R150 per
month. She draws a salary of R6 000 per month. Her cell phone costs are usualy R400
per month. She plans to buy a brand new hair clipper during July to the value of R750.
She can cut the hair of 4 dogs per day. She asks her clients R160 per dog. She works
from Monday to Friday. There are 20 working days in a
1. Draw up the Cash Budget of Frenchy Dog Parlour for the period 1 June 2017 to
31 July 2017.
2. Answer the following questions:
2.1 Identify the amount of money Frenchy Dog Parlour will have in her bank account at the end
of July 2017.
2.2 Calculate the possible growth/decline in her funds (money) from 1 June to 31 July 2017.
2.3 Your friend is thinking about an additional service for ther business. She wants to pick up
the dogs at the clients homes and deliver them afterwards
2.3.1 Predict what addisional costs this service will imply.
2.3.2 Assume your friend decides to go ahead with this service. Suggest how she
can finance the additional costs you predicted in 2.3.1
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1. Frenchy Dog Parlour
Cash Budget for the period .................... to ..........................
JUNE
JULY
RECEIPTS
TOTAL RECEIPTS
PAYMENTS
TOTAL PAYMENTS
Surplus/Deficit
Bank Starting Balance
Bank Closing Balance
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BUSINESS BUDGET: Formal Assessment
ANSWER SHEET OF
GRADE
35
The Cafe on the Corner approached you to assist them in drawing up a Cash Budget
for the month of June 2017. You receive the following estimated amounts from the
owner.
The Cafe on the Corner has R12 000 in its bank account at the end of May 2017.
The Cafe on the Corner usually pays the following each month: The rent for the shop is
R4 500 per month. Water and electricity are usualy about R900 per month. The
cashier earns a salary of R3 500 per month. The worker that is responsible for the
neatness of the shop and for stocking the shelves earns R520 per week. The manager
earns a salary of R8 000 per month. Telephone costs amount to R800 per month. The
Cafe on the Corner advertises once per week in the local newpaper and it costs R600 per
month. The delivery vehicle of the business must be serviced during June and this will
amount to R900. Petrol costs per month for this delivery vehicle amount to R2 000.
The owner estimates that stock with a selling price of R50 000 will be sold during June.
The cost price of this stock sold will be R30 000.
1. Draw up the Cash Budget for the Cafe on the Corner for June 2017.
2. Answer the following questions:
(21)
2.1 Identify the amount of money the Cafe on the Corner will have in its bank account at the
end of June 2017.
(2)
2.2 Calculate the possible growth/decline in the money of Cafe on the Corner from 31 May to
30 June 2017.
(4)
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2.3 Study the Cash Budget of the Cafe on the Corner and suggest 2 items where the owner
can save in future.
(4)
2.4 The real expense for telephone was R1 230 for June 2017. Suggest 2 control measures to
prevent this waste in future.
(4)
TOTAL: 35
1. Cafe on the Corner
Cash Budget for the month of June 2017
JUNE
RECEIPTS
TOTAL RECEIPTS
PAYMENTS
TOTAL PAYMENTS
Surplus/Deficit
Bank Starting Balance
Bank Closing Balance
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ECONOMICS AND MANAGEMENT SCIENCES: FINANCIAL LITERACY
LESSON PLAN 2: BUDGETS
Subject: EMS
Grade: 7
Educator(s) Signature:
Topic: Bugets
Date:
HOD Signature:
Term: 4
Week: 5-7
Duration: 3 weke
Prior content knowledge:
Link with next lesson:
Accounting concepts and budgets
Savings
Content:
Vocabulary/Important words:
Savings
In training manuel
Aims and Objectives of the lesson
To explain and teach savings and the importance of it. Use examples in practice to make it easier
for the learners.
ASSESSMENT STRATEGIES: Formal
X
Informal
Form of assessment:
Assessment tool:
Formal assessments
Memo
X
Evidence of assessment
Teacher:
Learners:
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TEACHER’S ACTIVITIES:
LEARNERS’ ACTIVITIES:
Explain personal savings and the role of that
banks play
Mark each activity with the learner
Activity 2.4 & 2.5
RESOURCES: Traninig manuel and text books
Teacher’s comments/reflection:
HOD input: monitoring and support:
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BUSINESS SAVINGS AND INVESTMENTS
CONCEPT
SAVINGS
INVESTMENT
WASTE
TYPES
INVESTMENTS
FIXED TERM
DEPOSIT
DEBENTURES
SHARES
UNIT TRUSTS
PROPERTY
TYPES OF
WASTE
Electricity
Paper and printing
Interest on
accounts in arrears
Telephone- and
internet usage
Salaries and
Wages
DEFINITION
Money put aside for future use. Savings are usually more shortterm and are used to pay for unexpected expenses.
(It will be discussed in detail in Term 4.)
An investment is when you buy a financial product like a policy or
investment plan, or a physical object such as a valuable painting.
The return on this can either be interest or dividends or the object
can grow in value.
The reckless spending of or loss of money.
DESCRIPTION
Money is invested for a specific period in a fixed deposit with a
bank and can only be released after that time has lapsed. The
business gets more interest the longer the money is invested.
Money borrowed from the business by other businesses or even
the government. The money is payed back to the business, with
interest, at a later date.
To buy partial ownership in a company, you buy shares.
Shareholders usually earn dividends on their money.
The money from individuals or smaller businesses are put together
to make a bigger amount. It is then invested as a trust.
Additional buildings can be bought and then rented to other
businesses. The value of the property increases over time and can
be sold at a later date for a profit.
POSSIBLE SOLUTIONS
Turn off lights, computers and other electrical equipment that is not
used.
Use e-mail instead of regular mail. Recycle paper.
Pay accounts (bills) on time.
Get caller ID to identify workers who abuse the telephone and
control the use of internet in the business. Internet and telephone
useage for private matters should not be allowed.
Workers must work productively. Use the work by piece system
instead of paying wages per hour. Pay the worker per piece of
work done and not for the number of hours worked.
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Activity 2.4 Business savings and investments
1
2
3
4
5
6
7
8
10
9
11
12
13
Across:
Down:
3. Additional buildings can be bought and then
rented to other businesses.
1. Use e-mail instead of regular mail
save on ...
4. To buy partial ownership in a company, you
buy shares. Shareholders usually earn
dividends on their money.
2. To prevent paying interest on
accounts in ... pay accounts (bills)
on time.
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6. Money put aside for future use. Savings are
usually more short-term and are used to pay
for unexpected expenses.
5. Turn off lights, computers and
other electrical equipment that is
not used to save on ...
7. Money is invested for a specific period in a ...
term deposit with a bank and can only be
released after that time has lapsed. The
business gets more interest the longer the
money is invested.
9. Get caller ID to identify workers
who abuse the telephone and
control the use of ... in the
business.
8. Workers must work productively to save on
waste of ...
11. The reckless spending of or loss of money.
10. Money borrowed from the
business by other businesses or
even the government. The money
is payed back to the business, with
interest, at a later date.
12. The money from individuals or smaller
businesses are put together to make a bigger
amount. It is then invested as a trust.
13. An … is when you buy a financial product like
a policy or investment plan, or a physical
object such as a valuable painting. The
return on this can either be interest or
dividends or the object can grow in value.
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Activity 2.5 Business savings and investments
Find the concept (from column B) that best suits the definition (from column A). Only write the
correct letter next to the question number, e.g., 14 N.
1
COLUMN A
To prevent paying … on accounts in arrears pay
accounts (bills) on time.
A
COLUMN B
Savings
2
Money put aside for future use. Savings are usually
more short-term and are used to pay for unexpected
expenses.
B
Unit trusts
3
Use e-mail instead of regular mail save on ...
C
Waste
4
Money is invested for a specific period in a fixed ...
deposit with a bank and can only be released after
that time has lapsed. The business gets more interest
the longer the money is invested.
D
Telephone
5
To buy partial ownership in a company, you buy ...
Shareholders usually earn dividends on their money.
E
Paper
6
The money from individuals or smaller businesses are
put together to make a bigger amount. It is then
invested as a trust.
F
Property
7
Additional buildings can be bought and then rented to
other businesses.
G
Shares
8
Get caller ID to identify workers who abuse the … .
H
Investment
9
When you buy a financial product like a policy or
investment plan, or a physical object such as a
valuable painting. The return on this can either be
interest or dividends or the object can grow in value.
I
Term
10
Workers must work productively to save on waste of
...
J
Salaries
11
Money borrowed from the business by other
businesses or even the government. The money is
payed back to the business, with interest, at a later
date.
K
Electricity
12
The reckless spending of or loss of money.
L
Debentures
13
Turn off lights, computers and other electrical
equipment that is not used to save on ...
M
Interest
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BUSINESS SAVINGS AND INVESTMENTS: Formal
assessment
ANSWER SHEET OF
16
GRADE
Find the concept (from column B) that best suits the definition (from column A). Only write the
correct letter next to the question number, e.g., 1.6 H.
COLUMN A
1.1 Additional buildings can be bought and then
rented to other businesses.
1.2 The reckless spending of or loss of money.
A
COLUMN B
Debentures
B
Property
1.3 Money put aside for future use.
C
Savings
1.4 The money from individuals or smaller
businesses are put together to make a bigger
amount. It is then invested as a trust.
D
Waste
1.5 Money borrowed from the business by other
businesses or even the government. The money
is payed back to the business, with interest, at a
later date.
E
Unit trusts
F
Investment
G
Shares
(5 x 2 = 10)
2. Read each of the following scenarios. Identify the area of waste in each and devise a
solution for this waste problem the business has.
2.1 ABC traders received an account of R25 000 from the municipality for Electricity.
2.2 Jabo traders just finished the 10the printer cartridge for this month. They also used 50
boxes of paper during May.
(3 x 2 = 6)
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