Unit 4 Financing The Future Case Study
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DIPLOMA IN FINANCIAL STUDIES (DIPFS)
UNIT 4 – FINANCING THE FUTURE (FTF)
Chapter 1 – Budgeting and personal
Financial forecasts
Worksheet 1
1.1 What is a budget?
1. Carry out Activity 1.1.
2. Read through section 1.1.1 and create your own definition of ‘flexible financial
Planning’.
3. Explain the difference between a ‘static’ and a ‘flexible’ financial plan.
The difference between static budget and a flexible budget is that a static budget does not change with the output while a flexible budget changes with the level of outputs. Static budget has a limited application while a flexible budget has a variety of applications.
4. Carry out Activity 1.2.
5. …show more content…
Explain the difference between ‘mandatory’, ‘optional regular’ and ‘optional on-off’ purchases.
40. What factors determine the amount of money spent by an individual each
Month?
41. Give an example of each of the following types of saving.
a) Short-term
b) Medium-term
c) Long-term
42. Read through the example in Resource 1.13, ‘Case study illustration’ (Tom)
And provide examples of which stages in the personal life cycle fit the different
Saving terms.
43. What factors determine the extent to which people engage in medium-term or
Long-term savings?
44. What is the importance of planning a mixture of spending, saving and
Borrowing when making a financial plan?
45. Complete Activity 1.15.
46. Complete Resource 1.12, ‘Case study’ (Jane).
47. Explain how Jane could have been more aware of what she was spending and
Why this is so important when following a financial plan.
1.9 A surplus or a deficit?
48. Explain the terms ‘surplus’ and ‘deficit’ in terms of financial planning.
49. Give examples of how people can increase their savings and achieve a surplus.
50. What must be considered if planning for a deficit in your financial plan?
51. Complete Activity
DIPLOMA IN FINANCIAL STUDIES (DIPFS)
UNIT 4 – FINANCING THE FUTURE (FTF)
Chapter 1 – Budgeting and personal
Financial forecasts
Worksheet 1
1.1 What is a budget?
1. Carry out Activity 1.1.
2. Read through section 1.1.1 and create your own definition of ‘flexible financial
Planning’.
3. Explain the difference between a ‘static’ and a ‘flexible’ financial plan.
The difference between static budget and a flexible budget is that a static budget does not change with the output while a flexible budget changes with the level of outputs. Static budget has a limited application while a flexible budget has a variety of applications.
4. Carry out Activity 1.2.
5. …show more content…
Explain the difference between ‘mandatory’, ‘optional regular’ and ‘optional on-off’ purchases.
40. What factors determine the amount of money spent by an individual each
Month?
41. Give an example of each of the following types of saving.
a) Short-term
b) Medium-term
c) Long-term
42. Read through the example in Resource 1.13, ‘Case study illustration’ (Tom)
And provide examples of which stages in the personal life cycle fit the different
Saving terms.
43. What factors determine the extent to which people engage in medium-term or
Long-term savings?
44. What is the importance of planning a mixture of spending, saving and
Borrowing when making a financial plan?
45. Complete Activity 1.15.
46. Complete Resource 1.12, ‘Case study’ (Jane).
47. Explain how Jane could have been more aware of what she was spending and
Why this is so important when following a financial plan.
1.9 A surplus or a deficit?
48. Explain the terms ‘surplus’ and ‘deficit’ in terms of financial planning.
49. Give examples of how people can increase their savings and achieve a surplus.
50. What must be considered if planning for a deficit in your financial plan?
51. Complete Activity