Class 11th cbse notes Home Science 'Financial management'
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Course
Home Science
Institution
Fifth Year / 11th Grade
Class 11th CBSE Home Science notes on 'Financial Mangement'. The notes are extremely simple to understand and provide detailed explanation for every topic.
DEFINITION AND SCOPE OF FINANCIAL
MANAGEMENT IN A FAMILY: -
Financial management refers to the
management of money within a family.
It involves planning, controlling, and evaluating
the use of various types of income.
The goal is to maximize satisfaction from the
available resources.
TYPES OF FAMILY INCOME:
Family income includes:
Salary
Wages
Rent
Interest
Dividends
Bonus
Retirement benefits
, These are the different sources of money that
contribute to the family’s finances.
IMPORTANCE OF REGULAR AND STABLE
INCOME:
The quality of living depends not only on the
amount of income but also on its regularity
and stability.
Having a consistent and stable income allows
for better financial planning and a more
secure lifestyle.
SKILLS REQUIRED FOR EFFECTIVE MONEY
MANAGEMENT:
Learning to manage money as a resource is
essential.
It involves skills such as
Budgeting
Tracking expenses
Saving
Making informed financial decisions
FINANCIAL PLANNING AND BUDGETING:
Financial planning is a part of financial
management and involves creating a budget.
Budgeting ensures that family income is used
to fulfill present needs and long-term goals.
It helps optimize the use of resources and
minimizes wastage of money on non-essential.
, Families can save a portion of their income for
future use through effective financial planning.
Monitoring and evaluating the financial plans
are important, and the commitment of family
members is crucial for success.
MANAGING FAMILY RESOURCES:
Management involves using available
resources to achieve goals and objectives.
Family resources are the resources that are
available to the family at a particular time,
which help them reach their family goals.
Family resources include
i. Human resources (knowledge, skills,
health, time, and energy)
ii. Material resources (housing, money,
investments)
iii. Community resources (library, parks,
community centers, hospitals)
Effective management ensures maximum
utilization of these resources.
IMPORTANCE OF MONEY MANAGEMENT IN A
FAMILY:
A family is a consumption unit and manages
finances for the well-being of its members.
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