• A rationale that includes a detailed explanation of, and justification for your real world application of the content; this is the inquiry/research project you are proposing and why. • How the application of the content addresses a global issue you have identified which is relevant to the math content • Your math area of choice (this should be an area you feel less prepared to teach) • Research into the identified content area to strengthen your knowledge

1. MANAGING MONEY
Introduction
My topic of interest in this study is managing money (Year 11 and 12). In this case,
financial management or money management entails effective and efficient management of
funds in ways which assist in accomplishing the objectives of an organization (Adrien, 2002).
This makes it to be a specialized function which is directly linked with top management. The
essence of this role is not only seen on the line but also an organizations capacity of maintaining
the well-being of its business endeavors (Mayers & Mayers, 2004). Commitment and accuracy
are also essential aspects of managing money. A person needs to track of his or her
organizational expenses for at least one month. Despite that, since expenses are prone to
fluctuations, the longer he or she does it, the better.
The manner in which a person invests, spends, and manages his or her finances has a
profound impact on his or her life. As a result of that, learning financial savvy has the capacity of
influencing one’s life in an organization as a financial manager (Seidner et al., 2013). From the
basics of mathematics, it means that majority of individuals doe end up making it to adulthood
without the need of learning the basics of money management (Weikart et al., 2013).
Acknowledging the manner in which credit cards works, investing for the future, and creating
budgets are startlingly uncommon skills.
Managing one’s finances entails a lot of paperwork and numbers. Therefore, taking
enough time to manage money can relies on leadership capacity of an individual. Budgeting is
perceived as being the initial step of controlling finances (Kwas & W.F.C, 2008). Although the
establishment of a budget takes a little time, it remains to be an effective means of getting a clear

2. picture of the money a person possesses, that is, the inflow and outflow of money (Weikart et al.,
2013). Consequently, creating a budget implies that a person has the opportunity of having better
credit rating, sporting areas which need changes, and the inability of being caught out by various
unexpected expenses.
Nevertheless, when a person or an organization spends more than the amount he or she
earns, there is the need of working out the areas that require cut back. This is relatively
achievable through making some sacrifices like complying with organization vision and mission,
and so on (Venugopal, 2010). This can also be realized through a spending diary as well as
keeping a list of all the things an organization buys in a month. On the other hand, getting every
organization to be involved with budget keeping enhances the concise establishment of an
individual’s budget (Jones & Jenkins, 2010). Sitting down and making an effective plan is
crucial in ensuring that everyone sticks to the budgeted amount. Evaluating the amounts to be
spent agrees between what a person needs to have.
Nevertheless, it should be noted that since life is usually unpredictable, there is the need
of trying to review one’s budget or expenses saves a lot. Regardless of pay-rise, or other factors,
there is the need of ensuring that there is no breaking of the terms of expenditure agreements
(Carroll, 2007). Even though one might be focusing on settling debts, an organization financial
manager should ensure that he or she has paid at least a minimum of credit cards as well as
monthly requirements on loan agreements (Gilbert, 2009). Due to the fact that the majority of
people might find it relatively hard to get motivated about saving, it is logical to set goals. The
first step of goal setting is through having emergency savings. Therefore, a person needs to
account for all the money which is spent every month.

3. After setting or having emergency savings, budgeting implies acknowledging the outflow
and inflow of finances to an organization. Therefore, although financial management is typically
applicable to the strategies of an organization, financial life management, or personal
management deals with the strategies used by an individual to manage funds (Khan & Hildreth,
2004). This involves the means of raising capital as well as how to allocate that capital i.e.
capital budgeting. Not only focusing on long-term budgets, allocating capital also takes into
consideration all the short-term resources, for instance, current liabilities (Mayers & Mayers,
2004). As a leader of an organization, this also deals with the dividend guidelines of the
shareholders.
Managing money or funds remains to be a decision making financial area which
harmonizes the goals of an enterprise and individual motives (Khan & Hildreth, 2004). This
entails, controlling, organizing, monitoring, directing, and planning financial resources of an
enterprise. The management of finances also involves the inflow and outflow of an
organization’s finances. As a result of this, financial controllers ensure that their maturity
schedules of the organizational deposits coincide with the general demand for loans (Gilbert,
2009). In order to achieve this, a person needs to look at assets and liabilities which influence the
ability of the bank to issue credit. Equally, there is the need of paying close attention to risks and
cost to be incurred so as to capitalize on the flow of cash opportunities. Since financial
institutions depend on the capacity of offering credit to their clients, ensuring that there is
effective liquidity of the finances is an essential aspect of the position of a fund manager
(Carroll, 2007).
As stated above, money/funds management involves being aware of where of the activities an
organization spends in as well as having a well-though-out arrangement in place for which the

4. company desires to go (Venugopal, 2010). Therefore, the core concepts of money management
involve;
a) Setting goals_ taking one’s time to establish the goals of the firm enables it to realize its future
endeavors.
b) Getting organized_ as an organizational leader, being organized is crucial to professional
money management. After ensuring that paperwork and organizational information is accessible
and in order, ensures that there is no wastage of time in search of essential documents, miss bill-
payment deadlines, and so on (Weikart et al., 2013). Designing a personal or organizational
money space also enhances effective execution of the activities of an organization with the use of
the available finances.
c) Tracking expenditures_ some of the financial constraints, for example, unable to pay bills,
having, or saving credit card debts, typically arises from the failure of following money
management golden rules; that is spending relatively little than the amount that flows into the
organization. For instance, through tracking the purchases made by an organization, a financial
manager has the opportunity of seeing how much or what that money was used for (Kwas &
W.F.C, 2008).
d) Building a budget_ a budget is typically a plan for what for what an organization desires to do
with its finances in realizing the objectives of its establishment. Since it sets spending
restrictions, it is not necessary to make it oppressive. Through sticking to it means that an
organization will ultimately have sufficient money for things which are crucial. Conversely,
through it, one consistent rule remains: the amount to be spent should not exceed income
(Adrien, 2002).

5. e) Making savings_ setting aside some cash on regular a basis is perceived as being a habit worth
getting into. This is because it gives financial managers or an organization the capacity of
achieving monetary goals as well as providing a safety net at the time of financial constraints
(Seidner et al., 2013).
Nevertheless, management of money ought to be a strategic techniques used for making
money yield. Conversely, spending money in order to satisfy one’s craving is always a natural
human phenomenon. The notion of managing money is usually employed for the purpose of
reducing the amount firms, institutions, and individuals spend on other things which add no
significant value to the long-term portfolios or assets of the company (Seidner et al., 2013). In
the other hand, this entails making monetary transaction worth the general expenses of avoiding
expenditure which appeals to snobbery or vanity, creating small quality-variation benchmarks.
Establishing the benefits of wise spending of finances in boosting portfolio multiplying,
different models ought to be used. Such models are always used in managing assets as well as
making them grow. Managing money or getting paid can be regarded as a tricky business, in
addition to the account management and cash inflow keeps an enterprise humming along
(Zelman et al., 2009). Therefore, getting paid in full and understanding management of money
needs to be prioritized. This begins with the needs of familiarizing with the basic money
management and bookkeeping principles. Moreover, financial leaders should offer careful
consideration to any purchase payment options including debit cards, checks, cash, as well as
other online payment which enhances debt collection and creates payment terms (Chandra,
2011).

6. Managing finances deals with investment decisions which the general investing in fixed
assets termed as capital budgeting (Chandra, 2011). Working capital decisions are also part and
parcel of the investment decisions. Because of that, financial decisions majorly relates with the
need of raising capital or finances from various sources which rely on the period of financing,
decision, costs of financing, returns, and so on (Zelman et al., 2009). In the long-run finance
managers should take decisions which directed at improving the net profit distribution. Since
managing of money deals with allocations, procurement, and the control of monetary resources,
the objective here is ensuring adequate and regular distribution of funds, adequate returns to all
shareholders which rely on their earning capacity, expectations, and market price (Paramasivan
& Subramanian, 2009). So as to ensure that there is an optimal utilization of funds; money
should be procured i.e. being utilized in all possible ways which reduces expenditures.
In the process of ensuring that their safety on investment, money should be wisely
invested in safe endeavors so as to realize adequate return rate. Conversely, in order to plan for
sound monetary structure, a fair and sound composition of money should be considered so as to
ensure that balance is instilled between equity and debt capital (Bhat, 2008). Similarly, it is the
duty of financial managers to ensure that they have made decisions which are based on cash
management. Since money is essential for settling employee wages and salaries, water and
electricity bills, payment of creditors, purchasing of raw materials, and so on, financial
controllers need to exercise control over those finances (Obst et al., 2007). Ratio analysis, profit
control, financial forecasting are some of the techniques which can be used to achieve the above
strategies of managing money (Chandra, 2011). Other than having adequate funds in an
organization, financial planning is also crucial in enhancing reasonable inflow and outflow
balances of funds so as to maintain stability.

7. References
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