Financial Management Essay Example for Free

Financial Man get onment Essay excogitationIn this assignment I go by be researching and discussing how to handle my ingest ain finances. For this I go pop harbour to research sources of income and write or so different types of employment and unemployment. The affect these commit on salaries and stipend pull up stakes withal be investigated. I reserve withal been asked to research and summarise tout ensemble in allowances and eudaemonias. As split of the management of my somebodyal finances I must produce a personal budget oer a detail hitch of time, on completion of this I go forth pair with a supply and discuss my findings. childbed 3Why is it definitive for me to manage my personal finance?* To attend to non to run out of m angiotensin converting enzymey* Help me with budgeting* Scarce resource* Savings* Paying bills* Living alone(predicate)* Managing notes is skill labor movement 4Jobseekers allowanceJobseekers allowance would be paid to me if I am eligible for it and realiseing for (seeking) sue. I excessively would kick in to be age 16 or oer to be able to dumbfound jobseekers allowance. This source of income is relevant for me beca accustom I am all over the age of 16, live on my own and I am before massive looking for reckon.Income supportIncome support provides financial abet for people ages 16 and over, who boast low income or no bullion coming in at all. This capital is for people who atomic number 18 non currently seeking work. This cash is to help people with daylight to day alimentation. Income support is relevant to me because this is the situation I am currently living in and I as well receive income support my ego.Child benefitChild benefit is p bents that score children under the age of 16 or children under 19 in full time education. Child benefit is no broader relevant to me because I do not live will my mother any more(prenominal). trapping benefitHousing benefit helps towards assume ing my rent which would be my local anesthetic authority, but they dont cover all my housing costs. Housing benefit is eligible to people who ar lease a room or living in a hostel of sum sort. I dejection apply for this by on the button deviation down to my local authority office and filling in a housing benefit form.Working families Tax commendationWorking Tax Credit is for people who be employed or ego-employed, over the aged of 16 and ar functional at least 16 hours a week. They besides go through to have at least one child. In couples, one person has to take away who receives the revenue enhancement credit. The get of valuate income credits they receive will depend on their annual income.Tax credits argon not relevant for me because I am not responsible for any children and I am not currently working.Task 5When preparing for employment the documents I would invite* CV* Covering garner* coat form* field of study insurance number* Bank exposit* Qualification c ertificates* P45 ( whitethornbe not for me yet)CVI would need a CV so that the employers get a brief summary of my qualifications and sense to-date. It would include the school and college I have attended. It will also include my past work experience. My CV will now include that I have deep worked at Superdrug. My CV will also have my references. References atomic number 18 very serious as the employers may want to contact the referees to confirm I have the qualifications for the job, and if I am reliable and trustworthy enough for the job.Covering letterA practical application letter is needed because it is a part of the formal requirement. It will show the employer where I heard about the advert and why I feel I would be rightfield for the job.Application formApplication forms ar used to help the employer to separate the advanced brush asidedidates from the not so good candidates. They are also used to find out about information and candidates background. interior(a) Insu rance No.Every one that has the right to work in the UK has the right to a national insurance number once they establish the age of 16. The national insurance number will show what national insurance contributions the worker pays over the course of his/her working life and also the contribution employers have made.Bank detailsBank details are required in order for the employer to give you your wages. Wages are now paid by direct transfer from the employer to the shore account of the employee.Qualification certificatesProof of GCSEs and past qualifications are key because the employer will expect me to have certain right qualification in order to have the job. Superdrug have specific qualifications that are required, these are called essential qualifications.Task 6Types of employmentSelf employmentBeing egotism employed is when you do not work for anyone else you have your own business. For archetype owning your own sweets shop is self employment. The income of the sweets shop w ill come from the clients who purchase the sweets. The income may also come from the swan if you borrow cash. free lanceFreelancers are a different type of self employment. Instead of owning their own business they sell their service by working for different businesses. For example a freelance hair dresser would not have their own hairdressing business they would get to all kinds of other businesses and do hairdressing.EmployeeEmployees are people who work for someone who controls what work they do. The employer is in charge of the employees income and deducts national insurance from the employees wages or salary. As long as they is someone handling your wages before you get them you are an employee.Task 8 rudimentary points of each jobJob title sell managerTasks to be carried out sell managers are responsible for day to day running of department stores, chain stores, supermarkets and independent shops.They look subsequently round management, including taking on and training new staff, maintaining a good standard of customer care and change magnitude sales and profitability.Their duties usually include* Making authorized premises and displays are well maintained* Organising melodic line checking and re-ordering as necessary, through computerised or manual systems* Making sure targets are reached and all opportunities are declaren to add sales and profitability* Organising sales promotions* Recruiting, interviewing and training staff* Dealing with queries or complaints from customersSkills requiredA sell manager should* Know the companys products and procedures well* Be committed to providing a high standard of customer service* Be able to lead and motivate a team* waste good noesis of efficacious an d security issues* Have relevant commercial skills for businessQualifications requiredThere are no set academic requirements to work in retail, although employers may prefer employees to have at diagnose five GCSEs grades A-C and have some working ex perience in retail.Useful qualifications would include* BTEC national abide by in retail* OCR certificate in retail* BTEC Higher National Diploma in retail management* Degree in retail managementIndividual qualities required* Be confident, energetic and ready(a) thinking* Have excellent spoken English and written communication skills* Be able to take responsibility and collide with decisions* Have a smart appearance* Be organised* Be able to deal effectively with problems and complaintsWage/salaryStarting salaries are usually from well-nigh 12,000Experienced managers may earn from around 15,000 to 26,000Managers of capacious stores may earn up to 65,000 or more.Job titleRetail assistantTasks to be carried outA retail assistant is responsible for making customers feel at ease when shopping and browsing around the store, directing them towards products and accepting pays. This job generally includes* Re crinkleing shelves and making sure merchandise is presented neatly* Greeting customers and answering enquiries about products* Operating computerised tills and barcode readers to scan items* Accepting payments for goods and wrapping them* Checking for stock items and ordering goodsSkills required* To be accurate and thorough, even under pressure* To be trustworthy- they may be dealing with expensive products and walloping amounts of currency* To understand and follow companys policies for health and safety and hygiene* Stamina, in order to serve on the shop floor for long terminationsQualification requiredEmployers set their own qualification requirements. But usually look for good communication skills, a pleasant personality and look for at least to two to four GCSE grades.Individual qualities required* Have an approachable, polite manner* Have good communication skills* Have a smart personal appearance* Enjoy providing a good level of customer serviceWage/salaryStarting salaries for a retail assistant is around 9,000 a course of instructionAn experienc ed retail assistant may earn around 11,500 a year.Task 9Why I think I am suitable for each jobRetail assistantI think that I am suitable to work as a retail assistant because I have relevant experience within the retail industry. I have recently completed a 2 week work placement at Superdrug which is in the retail sector. During this period I was privileged to be responsible for replenishing stock, providing customer advice and keeping the shop floor tidy. This placement enabled me to recrudesce vital skills such as team working, numeracy and customer service skills which are all needed in order to become a successful retail assistant.This work placement was a part of my BTEC foregoing business coarse this qualification will also enable me to qualify to work as retail assistant.Retail managerI am qualified to work in the retail sector as a retail assistant but in order to qualify as a retail manager I would have to finish my BTEC introductory coarse and accordingly go on to tea ch for three more years to receive a BTEC national certificate in business. aft(prenominal) this I would then need to go and study a degree in retail management in order to qualify for this job. I have good interpersonal and communication skills and while on my work experience I enjoyed providing good customer service these skills would help me with working toward becoming a retail manager. Retail managers are responsible for day to day running of department stores, chain stores, supermarkets and independent shops this may include Organising sales promotions and recruiting, interviewing and training staff.Task 10Wage/salary deductions pure(a) payGross pay the amount of capital an employee earns before any deductions are made such as tax or national insurance.Net payNet pay is the money employees actually get for them to spend.National insurance contributionsNational insurance contributions is an amount of money that the employee has to pay towards there employers this is deducted by the employer from the employees wages. If you are self employed you also have to pay national insurance contribution, this is a bantam monthly payment and then a collect sum at the end of the year.National insurance codeNational insurance codes indicate an employees marital status and how long an employee has been working.Income taxThere is a certain amount of money that all(prenominal) body is allowed to earn before they have to pay income tax, this is called personal tax allowances currently for people under the age of 65 this is 5,225 a year. If you earn any more than this you will have to pay income tax, how untold you pay will depend on how lots money you earn.Pensions/superannuationPensions are long time investments that are designed to provide you with money in your old age when you are not able to work any more. The earlier you start your pension the more you get when you retire.Employees are usually offered a pension scheme when the start there job. The employer pay s a contribution to your pension investment firm and so does the employee this is deducted out of the employees wages before it get to them.Union subscriptionsA union is a large group of workers in a particular industry or profession. Unions provide benefits such as legal advice and can also provide support in cases of unfair treatment or dismissal. To subscribe employees would have to pay fees this is sometimes deducted from the employees wages before it is received or the employee can pay the fees themselves but it is not compulsory.Task 11Allowances and BenefitsHousing benefitHousing benefit helps towards paying my rent which would be my local authority, but they dont cover all my housing costs. Housing benefit is eligible to people who are renting a room or living in a hostel of sum sort. I can apply for this by just going down to my local authority office and filling in a housing benefit form. This benefits me because its helps me to save money gives me more money to spend on more important things.Council taxCouncil tax is an amount of money you pay if you are renting out a council airscrew or of you have you own property with a certain amount of people living in there. Council tax paid to pay the council for giving you their service of letting you live in their property and council tax also pay for things similar people cleaning the streets.Interest from savingsInterest from savings is when you put money into the banking company or a financial institution and earn extra money on aggrandisement. This is called interest. When you get interest you have to pay income tax on that interest, the bank usually deducts the tax before pay the interest. This benefits me because I regularly put savings into my bank account.Inherited money near people decide to leave money to their relatives when they die, this is called inheritance. Inheritance could be a small or large amount of money and it may be necessary to pay inheritance tax on it.Borrowed moneyBorrowed m oney is anything from a loan to a bank overdraft. Money can also be borrowed from a relative or close friend in this case the money you have borrowed is the money you pay back. If you take out a loan or overdraft which is quit a large amount of money this usually involves paying back the money monthly and each month interest is added on top of the money that you are paying. This result in you paying more that you actually took in the first place, it is much wiser that you save your money for whatever you want to get therefore you will earn interest on your money rather that earning it.Working Families Tax CreditWorking families tax credits is for people who have at least one child under the age of 16 or 19 in full time education and earn an income which is below a certain level. The person has to be working at least 16 hours a week and must have savings below 8000. this does not apply to me as I am not eligible for this because I have no children.Task 14Explanation of how I planned my personal financesSpend or saveAs soon as I receive my money I spend it on things that I need such as food shopping and rent. Any money go forth over would get exhausted on the gym and my mobile phone then the rest would get put aside as my savings.GamblingGambling is when you pay money hoping for a chance of winning more money. Doing this is dangerous because you are not guaranteed your money. Gambling is very addictive and if done regularly this could put you into debt that why I choose not to go down this road.Spending habitsWhen I receive my money on a each week basis I try and spend as little as possible on food shopping so that I have money left over for myself to spend on small luxuries for example a meal out with my friends. I sometimes tend to spend too much on luxuries and this sometimes gets me into problems but I always have someone at hand to help me.Money and lifestyleAt the moment the amount of money I receive doesnt allow me to have the best of lifestyles but i t is enough to put clothes on my back and to bargain me shopping every week. To achieve the lifestyle I want I would need to find at least a part time job so I can earn more money than Im get now.My expectations of work and moneyAs long as I have enough money to buy me some food and to pay the rent I am ok for the moment. But I would like a bit more than that for example going on holidays and buying the latest clothe. To do this I would need to find a job and also make sure that I handle my personal finances correctly and do some budgeting for these luxuries.Short term accountsEvery week I receive my income support into my bank account. I am currently using a current account all my bills are paid out of this account and all my Ema payment come into this account.I also have a short term savings account which I put money into every week. I use this account when I run out of money or need to pay for something important e.g. phone bill.Long term accountsA long term savings account is an account that allows you to build up interest on money that you are saving over a number of years. An example could be an ISA, this is an individual savings account because it is tax free provided the amount saved each year doesnt exceed 3,000. The interest is cumulative which means the amount of interest plus capital will increase year on year.Another example of a long term account is a bank loan. A bank loan is usually drawn over a long period. This is a lump sum of money that I borrowed from the bank and paid off over a long period of time. For example a mortgage is paid over a period of 25 years.Cheque tidingsA cheque is a promise to pay someone in place of cash. When you are report a cheque you write down exactly how much you are going to pay the person. The person then takes the cheque to the bank and waits for it to clear this takes between 3-5 days. It is important to make sure that you have the right amount of money in your bank so you dont go into debt. It is also im portant to keep a record of any cheques that have been written, this can be done by using stubs which are left in the cheque book after you tear it out to pay someone. The stubs are there so that you can note down the details of the cheque and will help keep track of your money.Credit cardsA credit card is a card that you can use to pay for items of clothing or products. This card however gives you money on it but you have to pay it back you are also given a credit limit. To avoid spending more money than you actually have you should usually pay back the money within a month if the money is paid after this you will be charged interest. If you go over the limit that the company has given you interest will also be added. Also you can check how much money you are spending by checking a mini statement that you can get from a cash point.debit cardsDebit cards are cards that have your own money that you put on to the card. You can use this card to purchase virtually anything but instead o f having a credit limit of borrowed money you are actually using your own money to purchase goods. A debit card allows you to take cash out of ATMs if you have enough money in your account. To see how much funds you have in your account through an ATM you are given a pin number by your bank to memorise this then allows you to draw cash from the machines and purchase items in shops.To check that no-one is stealing from you or to make sure you are not spending more money than your supposed to it is good to check your bank statement each month these are sent to you by your bank. The bank statement show how much money you had in your account originally, then show all payments that were taken out of that money. You can then check if there are any payments that you are unsure of or if any mistakes were made in you transactions.Paying billsBills can be paid using direct debit or standing orders. This is when you money is taken out of you account and paid to a business for example, BT telep hone company at the identical time every month. This can help with budgeting, as you will know how much money is going out every month. To check that you are not paying out more than youre supposed to you can check the phone bill you receive every month.Remaining in creditIt is important to manage your account carefully to ensure you stay in credit. You must make sure that when you making payments such as cheques and debit cards you have enough money to make those payments. If not you account will go in to debt and you will be charged fines for doing this, it will also build up a bad credit rating which will make it hard for you to get a mortgage or a credit card in the future.Task 16Summary of holiday budget useWhy do you think it is important to manage your personal finances?I think it is important for me to manage my finances because it helps me to pay all my bills on time without getting into to debt. It also allows me to put money aside for unexpected emergencies. Managing my personal finances is a very important skill. This skill is extremely important if I would like to start my own business or borrow money from a bank. Managing my money correctly will enable me to live quiet a prosperous life in the long run.Did you find it easy or difficult to manage the finances given in functions? give reasonsI found managing finances quiet hard because you have to keep track of the money coming out of my income every week and there were a lot of different bills to pay and they were all different amounts. I also had to keep track of my spending at the same time to make sure that I didnt get into debt this was really difficult because you can get carried away when your sending your money on luxuries. After all that I have to calculate the total regular expenditure and then work out if I had any money left over to put aside as savings, overall this toil was very challenging but it taught me a lot about how to manage my own finances.What did you learn from the exe rcise on budgeting over a period of time?From doing the budgeting exercise I learnt that saving the little food waste of money here and there builds up into to something big. Also cutting down on luxuries also helps in the long run because the money you have saved enables you to get those luxuries if you just give time. This budgeting exercise also taught me how to calculate my net cash flow which I previously did not know how to do. I also learnt that budgeting is important for everyone because it stop many people from getting into to debt and also helps them to save considerable amount of money.BibliographyBTEC intromission business-published by Heinemann in 2005Heinemann Educational PublishersHalley Court, Jordan Hill, Oxford OX2 8EJISBN 978 0 435401 21 4John Ruskin college intranet siteUnit 6 Financial Management