3. What Does Financing Mean?
The act of providing funds for business
activities, making purchases
or investing. Financial institutions and
banks are in the business of financing as
they provide capital to businesses,
consumers and investors to help them
achieve their goals.
http://www.investopedia.com
4. “
Finance is the art of passing currency from
hand to hand until it finally disappears.”
-Robert W. Sarnoff
Financial education needs to become a part of our
national curriculum and scoring systems so that it’s
not just the rich kids that learn about money.. it’s all
of us.
David Bach
5. Contexts for education spending
• The macroeconomic situation and
public fiscal policy have an immediate
and important impact on resources
available for education. The economic
• Economic instability constrains the
resources available for education.
7. Public sector expenditure refers to
funds spent by governments on
educational institutions. This source of
funding can be further divided by
different levels of government (e.g.
central, regional and local) that have
responsibilities for financing
education.
8. The private sector includes
contributions from individuals,
households and other private
entities (e.g. religious groups, fi
rms, associations).
9. International sources of funding make up
only a very small proportion of total education
expenditure. These include loans and grants
from multilateral organizations (e.g.
development banks), bilateral aid and
cooperation, and funds from international
NGOs. These funds are typically channelled
through central governments but, on rare
occasions, they are transferred directly to
educational institutions.
10. This model of education finance incorporates the three main sources of
funding for education: the public sector, the private sector, and international
sources.
11. Funds from all of these sources are destined
for educational institutions, which are
basically those that provide instructional
services to individuals or education-related
services to other educational institutions,
regardless of who governs them. With
respect to governance, it is important to
distinguish between the funding source and
the service provider (e.g. public or private).
13. Government-dependent refers to institutions that
are independently managed but receive substantial
support – more than 50 per cent of operating funds
– from the state. Independent private institutions
are those that are independently managed and
receive less than 50 per cent of total expenditure
from government sources. Despite the funding
distinction, the two categories are typically grouped
together as the ‘private’ sector.
15. An example of a direct flow would
be funds given directly to the
educational institution either by the
state or by households, e.g. tuition
fees.
16. An indirect flow is one that is allocated
through the other sector. For example,
private expenditure may indirectly support
education via state taxation and public
funds may flow indirectly to institutions
through a wide range of subsidies provided
to individuals and households.
17. this circular path reiterates an important
principle of education funding. Keeping in
mind the differences in the capacity across
and within the public and private sectors to
provide resources, there is only one pool of
resources and many different ways for it to
flow to educational institutions.
18. the state plays the
predominant role in the
management and finance of
the education system.
19. Public education
spending by
government level
In order to distinguish between spending by government
level, it is important to first understand the general
governance structure of a country.
20. In most countries, the governance
structure consists of two or three main
levels of authority. These include a
central government, regional
government agencies and local
government agencies.
21. The relative importance of each of these
levels in terms of education decision-making
differs greatly among countries, largely the
result of overall political governance
structures. Countries where political power is
centralized will see more decisions at the
highest levels and where political power is
decentralized at regional or local levels
(NCES, 2002).
22. • the central government is more likely to be
responsible for decisions
• central governments may have the lead role
in planning, structures and personnel
management while schools make most
decisions about the organization of
instruction.
• the central government makes decisions
about the allocation and use of funds for
education but local authorities seldom have
chief responsibility.
23.
24.
25. GDP
Definition
Gross Domestic Product. The total market
value of all final goods and services
produced in a country in a given year,
equal to total consumer, investment and
government spending, plus the value of
exports, minus the value of imports.
26. What Does Macroeconomics Mean?
The field of economics that studies the
behavior of the aggregate economy.
Macroeconomics examines economy-wide
phenomena such as changes in
unemployment, national income, rate of
growth, gross domestic product, inflation
and price levels.
27. What Does Fiscal Policy Mean?
Government spending policies that
influence macroeconomic conditions.
These policies affect tax rates, interest
rates and government spending, in an
effort to control the economy.
28. Equity
in general, you can think of equity as ownership in any
asset after all debts associated with that asset are paid off.
For example, a car or house with no outstanding debt is
considered the owner's equity because he or she can
readily sell the item for cash. Stocks are equity because
they represent ownership in a company.
29. Context
is the surroundings, circumstances,
environment, background, or
settings which determine, specify,
or clarify the meaning of an event.
