Lesson Structure:   Financial (Money) Management BBS104

There are 10 lessons:

1  Understanding Financial Terminology

• Financial management Goals
• Financial terminology/language
• Financial statements

2  Planning & Managing your Cash

• Budgeting
• Cash flows
• Profit and Loss
• Balance sheet
• Financial records
• Problem-solving

3  Borrowing – for goods, against your home, etc. Different types of loans, overdrafts, credit cards, financing a business etc.

• Why borrow?
• Types of loans and Sources of funds
• Getting a mortgages to suit you
• Credit card control
• Debt Management

4  Buying -What to look for, hidden traps, consumer protection, deciding when not to buy on credit, forms of credit.

• What to look for
• Hidden traps
• Consumer protection
• Deciding when not to buy on credit
• Forms of credit.

5  The Money Market – How it works

• Introduction
• Sterling Money Market Operations
• Reserve Averaging Scheme
• Standing Facilities
• OMOs
• Money
• Investment

6  Investing – In housing, land, stocks, bonds, trust funds, antiques, business investments, insurance (annuities) and more.

• What is an investment?
• Investment Types: Housing, land, stocks, bonds, trust funds, antiques business investments, insurance (annuities) and more.
• Buying shares
• Spreading your investment
• Investment appraisals
• A lifetime guide to money matters: Managing your cash, debt, insurance, housing, strategic planning
• Making your own money
• Using your money
• Keeping your money
• Counting your money
• Enjoying your money
• Investing in shares
• Buying or starting a business

7  Superannuation – Lump sum, roll over etc.

• Handling lump sums
• Investment options
• Superannuation for:
• Employees
• Employers

8  Reducing Costs – Cutting down on expenditure.

• Methods of cost saving
• Alternative Living
• Reducing the cost of credit
• Use your property
• Organizing your finances

9  Banks – How they can help you.

• E-commerce
• Bank clearing house
• Choosing a bank
• Types of banks
• Bank fees
• Getting the most from your bank including reduced credit card rates.

10 Communication – How to deal with financial experts, bank managers, accountants and others in the financial world.

• Introduction
• Understanding Financial Terminology
• How to deal with financial advisors
• Understanding Communication
• Interpersonal Communication skills

Learning Goals: Financial (Money) Management BBS104

• Develop an understanding of the nature and scope of financial management, and key terminology used.
• Discuss planning the management of financial resources.
• Differentiate alternative sources of finance.
• Determine appropriate and affordable purchasing.
• Describe the nature and scope of the investment market.
• Compare investment options
• Discuss personal financial risk management
• Identify ways of reducing expenditure without seriously affecting outcomes.
• Choose and use banks more effectively.
• Improve communication skills in order to more clearly interact with people providing financial services.

KNOW YOUR  FINANCIAL TERMINOLOGY

A clear understanding of money vocabulary is advisable; don’t be caught out by not understanding terms such as collateral, establishment fees, credit score, interest rate and mortgage fees etc.

When dealing with either a bank manager or investment counsellor have a clear understanding of what you are after, even writing down questions which are relevant to your situation.

Become familiar with the following terms:

Bond
A promise issued which guarantees an investor a specified rate of interest on a loan for a specified period of time, and repayment of the principal at maturity.

Bond Fund
A mutual fund that invests in bonds and distributes income as it comes in, to the investors.

Collateral
An asset other than money (e.g. property, art work, shares) which is guaranteed as security against default on a loan (i.e. if the loan repayments are not made, the loan institution has a legal right to claim these assets).

Credit Rating
The capacity of an individual or organization to raise and sustain credit, commonly determined by a supplier of credit based upon past credit history (e.g. the way in which loans have been paid back)

Debit Card
A card used for making payments (e.g. buying goods) which operates an account that has had money paid into it in advance of making transactions.

Estate Planning
Planning to optimize wealth across several members of a family (e.g. to minimize tax losses and complications involved with passing on wealth when assets are inherited when someone dies)

Fiduciary
Advisor who can buy or sell securities on behalf of a client (i.e. a signed authorization document provides the agent with limited power of attorney)

Gross Domestic Product (GDP)
The total monetary value of goods and services produced by a country over a year.

Net Asset Value
Refers to the value of each share, calculated by dividing the total value of all shares by the total number of shares.

No Load Funds
Mutual funds that can be bought or sold without a commission being charged (A management fee however will apply)

P/E Ratio
Price of stock divided by yearly earnings per share.

Pro Forma Invoice
A bill (or account) issued in advance of making a transaction (e.g. where credit has not previously been established, a company may issue an invoice and require it to be paid prior to supplying a service or goods).

Return on Investment
The result of dividing net income by the amount of capital invested.

Underwriter
A brokerage business that represents a company, selling their shares (stock) to the public, via an initial stock offering.

Managed Investment Trust
Fund managed by a professional manager, such as a bank, merchant bank, life insurance company or fund manager, which invests in a range of assets, including cash, fixed interest securities, real estate and shares in varying proportions.

Unit Trust Groups
Professionally managed investment vehicles where investors’ funds buy individual units in the trust, the price of which varies according to the value of underlying investments. Investment mix varies.

Cash Management Trust
Fund managed by an institution, such as a bank, building society of credit union, which usually pays a higher return than ordinary bank deposits and invests in fixed interest securities, such as bank bills. Generally a short-term investment with a specified minimum investment.

Growth Trusts
Investment vehicles generally for a medium to long term, whose objective is capital gain rather than regular income.

Income Trusts
Investment vehicles, formed as trusts, which invest in income-producing assets and pay earning distributions quarterly, half-yearly or yearly.

Growth-Oriented Property Trusts
Trusts which invest primarily in real estate to make capital gains in the medium to long term.

FREQUENTLY ASKED QUESTIONS

Here is a list of the most often asked FAQ’s.

General

Q. Why should I enrol with the Academy for Distance Learning?
A. Here at ADL, our students are our priority – we treat everyone as a unique individual.

Q. Do I need to buy text books?
A. No, as each module has been written by highly qualified industry professionals. The content of the material is presented in such a way that text books are not required. However, if you require additional reading your tutor will be able to supply a list.

Q. What happens if I have to stop studying for a while? (eg. become sick, go on holidays, have a baby, move house, etc)
A. It’s OK to take a break and start up your study at a later point in time. Just let us know.

Q. Is there an age limit?
A. There is no maximum age limit. We do however, have a minimum age limit of 18 years. Below that age parental consent would be required.

Q. Are your courses up-to date?
A. Our courses are revised and updated on a rotation system.

Q. Do you have a Cancellation policy?
A. Yes. We have a cancellation policy that is fair and equitable. For further details please click here.

Q. Will I have any opportunity to engage with other students?
A. We have a Student Community group based on facebook! If you don’t have a facebook account already, you could make one just for talking with fellow students on the group.

Enrolment

Q. When can I enrol/start?
A. You may enrol and start at any time of the year – it’s all self- paced.

Q. Can I study from anywhere in the world?
A. Our courses are available to anyone, anywhere in the world from the comfort of your own home. The course content is relevant to any country, culture or economy.

Q. How long do I have to complete the course?
A. You complete the course at any time that is convenient for you.

Q. Completing a 100 hour module – how long will it take?
A. For some students a 100 hour module will take approximately to 3- 6 months to complete. Others take less time and some even longer.

Assessment

Q. Assessment – how does it work?
A. For each 100 hour module you are assessed by assignments (at the end of each lesson) and a final one and a half hour exam (or you may elect to complete a Project, instead of sitting the exam) – the choice is yours – you sit for the exam in your own location.

Q. I don’t cope well with exams – what can I do?
A. You may elect to undertake a Project (set by your tutor) instead of sitting the exam. Projects are completed from your home and can usually take a couple of weeks to complete.

Q. If my assignment is not up to standard is there an opportunity to resubmit my work?
A. Yes –

Q. How many assignments do I need to complete for each module?
A. At the end of each lesson, there is an assignment – so if a course has say, 10 lessons, there would be 10 assignments.

Q. I am having difficulty attending workshops/industry meetings, what can be done?
A. If your course requires attendance at workshops, conferences, or industry meetings; alternative arrangements can be made in your country.

Qualifications

Q. Can I customize my diploma/higher qualification?

A. Not all educational institution’s certificates /diplomas meet everyone’s needs. The opportunity to Design Your Own Diploma at the Academy (subject to our approval) is an added bonus, not found at other colleges. You choose modules that you think will help you in achieving your goal.

Q. What do I get when I complete the course? Will I receive a transcript?
A. At the completion of all courses and providing all assignments and exam requirements have been met, you will receive your Award and a Transcript.

Tutors

Q. Our tutors – who are they?
A. We appoint Tutors and require that they must be currently active in their industry, with at least 5 years’ experience in their chosen profession.

Q. Can I contact my tutor at any time?
A. Yes – you have unlimited access to your tutor via email through our Online Classroom. You can always leave a message with ADL requesting your tutor to contact you. You decide on how much or how little contact you wish to have.

Q. Practical work – How is this done?
A. To find out more about this part of the course please visit the section on How Our Courses Work here.