◄UNIT 3: SOCIAL COHESIONUNIT 5: HEALTH AND SANITATION►

UNIT 4: PERSONAL FINANCE AND DEVELOPMENT

  • UNIT 4: PERSONAL FINANCE AND DEVELOPMENT

    Key unit competence: To use language in the context of personal
    finance and development.
    Introductory activity
    Picture observation and interpretation
    1. Observe the pictures and discuss


    While interpreting the above pictures, answer the following questions:
    2. What is taking place in both figures above?
    3. What do you think the woman in Fig.2 is doing?
    4. Do you think that the above activities have any relationship with personal

    finance? Justify your answer.

    4.1. Describing financial tools and their uses
    4.1.1. Learning activity: Reading and text analysis
    Observe the pictures below and discuss

    In the discussion, try to answer the following questions:
    a. Identify different tools used in finance.
    b. What is the difference between a chequebook and a credit card?
    c. How do you measure the effectiveness of bank services using electronic
    tools?
    d. Do you think there is any challenge in using financial tools? Justify your

    answer.

    Text: Financial tools, a key to quick service
    Finance and investment jobs are perhaps some of the world’s most mind crunching careers.
     These professions carry with them a lot of complicated
    processes and activities. A lot of terms and formulas are so hard that they can
    quickly be forgotten. One can easily get lost somewhere in the middle. That’s
    why, over time, financial tools are being made to make things easier. They either
    aid in creating dynamic worksheets or maybe as simple as helping professionals
    in monitoring market developments. As a child, I used to watch in amazement
    while my mom balanced the family check book. She used a handheld
    calculator    , a cheque book register and a stack of bills and receipts to
    keep our finances in order. She had to call her broker to invest money in her
    business. She consulted a paper mortgage amortization schedule when

    making extra payments towards the debt.

    Even when we first got a computer and my dad started using Quicken, he still
    entered everything from his check register and then reconciled it with his bank
    statements. I loved watching my parents with their money, but at the same

    time, I don’t want to spend hours keeping track of everything. 

    Using financial tools answered different questions that people kept on asking
    themselves like how should they refinance their mortgage? How much do they
    need to save for their children’s college education? As accounting professionals,
    these are some of the questions that are posed to us on a daily basis. We
    are providing these interactive financial calculators and other tools to assist
    you with some of the day-to-day questions and concerns that may arise. While
    those financial tools discussed in the following paragraphs are not a substitute
    for financial advice from a qualified professional, they can be used as a starting
    point in your decision-making process. 

    First, a cheque is a document that orders a bank to pay a specific amount
    of money from a person’s account to the person in whose name the cheque
    has been issued. The person writing the cheque, known as the drawer, has a
    transaction banking account (often called a current account) where their
    money is held. The drawer writes the various details including the monetary
    amount, date, and a payee on the cheque, and signs it, ordering their bank to
    pay the payee. 
    Second, Business Credit Card Anita Campbell recommends opening a
    business credit card     in order to improve your business credit history, 
    gain access to higher credit limits for business borrowing, and receive 
    business specific rewards and discounts.
    Third, the smoother and nimbler your billing process, the quicker payments will 
    be made and processed and the faster the cash will flow into your business.
    With a quick, cloud-based billing system you can shorten the billing process
    and even increase customer satisfaction. By implementing agile billing tools
    and processes, you will both improve customers’ services and finance related
    activities. 
    Lastly, as far as ICT is concerned in terms of financial tools, we cannot forget
    Accounting Software because QuickBooks has long been the gold standard
    for small business accounting, but online accounting solutions such as Xero
    are recently gaining traction. Whatever program you choose for your accounting,
    make it work for you by choosing a tool that’s both as robust and as flexible as
    possible. Business News Daily’s 2015 Buyer’s Guide recommends you look
    for these features: basic accounting tasks such as invoicing, expense tracking,
    and client/vendor contact management; automation of billing and recurring
    payments, quote and estimate creation, tax preparation, multiple-user access,
    payroll processing, mobile access, and integration with programs such as 
    point of-sale software, credit card processing, and Google Apps.

    Adapted from: https://www.financewalk.com/financial-tools/https:// the college investor.

    com/19733/5-free-financial-tools-everyone-needs/

    Comprehension questions
    1. What is complicated in the profession of finance and accounting
    according to the writer?
    2. What questions people failed to answer in the absence of financial tools?
    3. Explain how to use the following financial tools as described by the writer.
    a) A cheque
    b) A business credit card
    c) Billing tool

    4. Provide two examples of electronic financial tools.

    Application activity 4.1.2
    Word meaning
    1. Find the meaning the following words using dictionaries and thesauruses.
    a) Mortgage amortization
    b) Bank statements
    c) Receipts
    d) Invoicing
    e) expense tracking
    f) vendor
    g) automation of billing
    h) payroll processing
    2. Make different sentences using the words below:
    a) A cheque
    b) A credit card
    c) Receipt
    d) Finance
    e) Billing machine

    f) Investment 

    4.2. Talking about Financial terms
    4.2.1. Learning activity: Reading and text analysis

    Pre-reading activity

    Read the following notes and answer questions that follow:
    Text1: Interest rate 
    Interest is an amount the bank (or other moneylender, which is for any person
    or organization that gives you money) will charge you or your company for the
    money you borrow from them. 
    Investment
    The noun investment refers to money that you put into your business, property,
    stock, etc., in order to make a profit or earn interest. 

    A credit card is a card that allows you to borrow money against a line of credit,
    otherwise known as the card’s credit limit. You use the card to make basic
    transactions, which are then reflected on your bill. 
    A transaction is an agreement between a buyer and a seller to exchange
    goods, services or financial instruments

    A deposit is the act of placing cash (or cash equivalents) with some entity,

    most commonly with a financial institution such as a bank. 

    The deposit is a credit for the party (individual or organization) who placed it,
    and it may be taken back (withdrawn) in accordance with the terms agreed at
    time of deposit, transferred to some other party, or used for a purchase at a later

    date. 

    Profit
    Profit describes the amount of revenue your company gains after excluding
    expenses, costs, taxes, etc. The goal of every business is to make profit.
    Loss
    In finance, we often hear the phrase profit and loss. Loss is when you lose money.
     It’s the opposite of profit, and it’s a word that no one in finance ever wants to
    hear. Still, it’s something that can happen when a company makes less money
    than it spends.
    Overdraft
    An overdraft is when you spend more money than you have in your bank account.
    The bank will often make you pay an overdraft fee if you do this.
    Saving is income not spent, or deferred consumption. Methods of saving 
    include putting money aside in, for example, a deposit account, a pension 

    account, an investment fund, or as cash.

    Comprehension questions
    1. What is the difference between debit and credit?
    2. Which term do we use when we spend more money than we have in our
    bank account?
    3. After reading the notes above, which conclusion can draw? 
    Text 2. A dialogue: A bank clerk and a bank customer
    Read this dialogue and answer the questions below:
    Bank Clerk: Good morning, welcome to the Grammar Bank. How can I help
    you? 
    Customer: Good morning. I would like to open a bank account.
    Bank Clerk    : Sure thing. What kind of account would you like to open? A
    savings account or a checking account?
    Customer    : What is the difference?
    Bank Clerk    : A checking account is designed to use for everyday
    transactions. Yet; the money in a savings account is meant to stay in the
    account and earn interest over time.
    Customer    : I see, actually I want to apply for a credit card. That’s why I need
    an account.
    Bank Clerk    : Okay then, you probably want a checking account.
    Customer:     Well, thank you. I’d like that.
    Bank Clerk    : Sure, we will have you fill out an application form, please.
    Customer    : No problem.
    Bank Clerk    : How much of a credit limit were you looking for?
    Customer    : I would like a $10,000 spending limit.
    Bank Clerk    : Alright, we will see what we can do. We might be able to get you
    one of our gold cards with a $10,000 spending limit.
    Customer    : Wonderful. Will I also collect points when I use the card?
    Bank Clerk    : Sure, with our gold card you will get 10 reward points for every
    dollar spent.
    Customer: Perfect, I have filled out the form. Do you need anything else?
    Bank Clerk    : You just need to deposit a minimum of $250 into your new
    checking account.
    Customer    : Very well, here you are.
    Bank Clerk    : Thank you, your account is set up now and your credit card will be
    mailed to your address within 5 to 10 business days.
    Customer    : Thank you for your help, have a good day.
    Bank Clerk    : Thank you too.
    Comprehension questions
    a) What is the name of the bank?
    b) Which name of the account did the customer want to open?
    c) Give a reason why the customer wanted to open an account.
    d) What is the value of gold card?
    e) How much money was the customer supposed to deposit on his
    account? 
    Application activity 4.2.2
    Debate and sentence writing
    1. Debate on the following topic, “This house believes that one
    should save after paying their expenses.”
    2. Write sentences using the following financial terms:
    a) Overdraft
    b) A bank account
    c) Interest rate
    d) Transaction
    e) Spending
    4.3. Describing Financial Institutions
    4.3.1. Learning activities: Reading text and analysis
     Pre-reading activity: Picture interpretation.

    

    Look at the above pictures and then answer these questions:
    1.Do you think services given in Fig. 1-4 are the same? Justify your answer.
    2.What are the types of financial institutions do you know?
    3.Why is it important to keep money at the bank?
    4.Give examples of tools used by financial institutions.
    Text 1: Financial institutions in Rwanda
    Read the following text and answer questions that follow:

    Efficient and stable investment activities present various opportunities to
    developing countries. In fact, investment is associated with both economic
    and social rewards. That is, investment not only plays an important role in job
    creation but also has a role to play in provision of both infrastructure and social
    services. However, finance is required for a nation to reach a sustainable level
    of investment. To provide the needed finance, there are varieties of institutions
    rendering financial services; such institutions are called financial institutions.

    Banks are among such institutions that render financial services. 

    They are mainly involved in financial intermediation, which involves channelling
    funds from the surplus unit to the deficit unit of the economy, thus transforming
    bank deposits into loans or credits. Banks have historically been viewed
    as playing a special role in financial markets for two reasons. One is that
    they perform a critical role in facilitating payments, the other is that they have
    long played an important, although arguably less exclusive, role in channelling
    credit (loan) to households and businesses. Financial institutions are involved
    in the process of increasing the level of investments of various economies,
    particularly the capital goods needed for raising productivity. In developing
    countries like Rwanda, income is very low and as such high level of investment
    cannot be made possible without requiring a long period effort at saving.
    Credit facilities (loan) have a vital role to play here, in raising the investment to

    the level necessary to achieve a self-sustained growth. 

    Financial institution as it is responsible for the supply of money to the market
    through the transfer of funds from investors to the companies in the form of
    loans, deposits, and investments through its most common types of financial
    institutions like commercial banks, investment banks, brokerage firms,
    insurance companies, and asset management funds. Other types include

    credit unions and finance firms. 

    Financial institutions are regulated to control the supply of money in the market
    and protect consumers. For example, in Rwanda, we have different types of
    financial institutions such as commercial bank that cannot only offers financial
    services to individuals and businesses but also people may save money in a
    savings account and ask for a loan. Commercial banks in Rwanda include: 

     Access Bank Rwanda, Bank of Kigali, I & M Bank, BPR (Bank Populaire du

    Rwanda), Cogebanque, Ecobank, GT Bank, etc.

    Then, investment bank buys shares in a business and sells them to investors. The
    Development Bank of Rwanda (BRD) is an investment bank that buys shares
    from businesses mainly in agriculture and tourism whereas a microfinance
    company offers smaller loans to individuals or businesses. The interest rates
    are cheaper than in a commercial bank. Microfinance companies include:
    Urwego Opportunity Bank, Copedu, Zigama Credit and Savings Society, and

    so on. 

    The need to achieve sustained investment within any economy can be possible
    amidst strong financial institution and precisely within the existence of
    tailored credit facilities that are in accordance with government policies and

    program in a bid to attaining the desired investment objectives of a nation. 

    Generally, as far as the banking sector is concerned, it helps to make loans
    available by mobilizing surplus funds from savers who have no immediate
    needs of such funds and thus channel such funds in form of credit to investors
    who have brilliant ideas on how to create additional wealth in the economy

    but lack the necessary capital to execute the ideas. 

                                             Adapted from (Samuragwa, 2014)

    Comprehension questions
    1. Which opportunities do people gain from investment?
    2. What are the types of financial institutions described in the text above?
    3. Provide the importance of banks as described in the passage.
    4. Why do you think that some people can prefer microfinance companies
    than investment banks?
    5. Suggest some pieces of advice to people who do not use financial

    institutions. 

    Application activity 4.3.2
    Sentence construction and composition writing
    1. Sentence construction
    Use the following words to make your own sentences with the help of
    dictionaries.
    a) Deposit
    b) Credits
    c) Services
    d) Microfinance
    e) A bank
    f) Investment
    g) Economy
    h) Funds
    i) Loans
    j) Banking
    k) Financial institution
    2. Composition writing
    Write a composition about the role of financial institutions in creating
    small businesses for youth.
    4.4. Language structure: Use of quantifiers: many, some, a little, little
    a) Fill in the gaps with either some or any:
    1. There isn’t _______ time to finish your lunch. We need to leave now!
    2. We have _______ham sandwiches in the fridge if you’re hungry.
    3. Shall we bake _______ cupcakes for the party?
    4. Do you have _______ family in Italy?
    5. I won’t need to do _______more revision after my exams.
    6. There aren’t _______ shopping centers near my house.

    b) Fill in the gaps with either little or a little. 

    1. There is ___money on my bank account. So, I will at least buy some
    drinks for you.
    2. David has ___sugar in my tea. I am not happy with the taste.

    Notes: Some, any, much, many, few and little are all words that come before
    nouns to help explain them. Some and any are both “determiners” – they tell us
    whether the noun phrase is general or specific. Some and any are both “general
    determiners”, which means they refer to an indefinite or unknown quantity of

    something. 

    Much, many, few and little are all “quantifiers”. Quantifiers are used to give
    information about quantity (the number of something). Both much and many
    suggest a large quantity of something, whilst little and few mean: not as much,
    or not as many. However, if you use a little or a few, this means: a small amount! 
    Some vs. Any
    The words some and any are used when the exact number or amount of
    something is not known, or when it’s not important. Some and any are both
    used to refer to an indefinite quantity or number.
    For example:
    There are some birds in our garden. (The number exact of the birds in the
    garden is not known or it doesn’t matter how many birds are there) as opposed
    to:
    There are three birds in our garden. (The number of birds is important and
    exact)
    Some and any are known as general determiners. They are used to modify
    nouns, specifically to show that the noun phrase is general (rather than specific).
    They can be used with:
    1. Countable or uncountable nouns:
    We don’t have any time to get popcorns before the film starts. (Time is
    uncountable)
     We still have some apples on the tree. (Apples are countable)
    2.Singular or plural nouns:
    We don’t have any chicken left for dinner. (Chicken is singular) It’s such
    nice weather! Let’s invite some friends round for a BBQ. (Friends is plural)
    The use of some and any.
    Although some and any are both used to describe an indefinite number, they are
    used in different ways. So how do we use them correctly?
    - In general, some is used in positive sentences (which don’t contain the word
    ‘not’):
    Examples:
    a. I would love to try some of that food! It looks delicious and cheap.
    b. I have bought some strawberries and cream to have for dessert.
    c. Some people think it’s better to eat healthily than to exercise a lot. 
    - Any is used in negative sentences (which contain the word ‘not’).
    Examples:
    a) I don’t have any money to finance my small business.
    b) I don’t need any help with my homework because I can do it on my
    own.
    c) I’m not hungry at the moment so I don’t want anything to eat.
    - Any is also used in questions:
    Examples:
    a) Have you got any idea how long applying for a loan in Bank of Kigali
    may take?
    b) Do you have any brothers or sisters?
    c) It would be great to season these potatoes. Is there any salt and
    pepper?
    d) Do you have any idea about Mary’s source of capital? 
    Exceptions
    - There are some exceptions to these rules. We can use some in questions
    when offering something or making requests:
    Would you like some milk and sugar in your tea? Shall we invite some friends
    round? I left my wallet at home; can I borrow some money for lunch?
    - Any is used in positive sentences to mean “it doesn’t matter which…”:
    Examples
    There’s no seating plan, so you can sit anywhere you like. Choose any pair of
    shoes you want. They’re all of the same price. I don’t mind which pair of shoes
    you buy for me. I’ll take any of them!
    Much vs. many 
    Much and many are part of the family of “quantifiers”. They are used to talk about
    quantities, amounts or degrees (along with ‘a lot of’ and ‘lots of’) and suggest a
    large quantity of something. 
    When are “much” and “many” they used?
    Many     is used with plural, countable nouns (e.g. dogs, dollars, tables, children).
    Much     is used with singular, uncountable nouns (e.g. happiness, music, water,
    time).
    Examples:
    There aren’t many doctors in the hospital today. (doctors are countable) There
    isn’t much light in this room so let’s open the curtains. (light is uncountable)
     Too much money was spent on the Royal Wedding. (money is uncountable)
    N.B: Equipment, luggage and information are all uncountable nouns and
    therefore will always use much.
    Examples:
    1. How much equipment does your studio have?
    2. You have too much luggage to board the plane!’
    3. There isn’t much information on your CV.
    4. Please make it more detailed…’. 

    Much and many are usually used in questions and negative statements:
    Examples:
    - How many bank accounts do you have?
    - How much time does it take to get to your house from here?
    Much and many are sometime used in positive statements when:
    They are used with so, as or too:
    Examples:
    - Peter has got too many friends.
    - Sarah has so much money at the moment; she must be earning a lot!
    - John makes as much money as Sarah.
    Too is often used before much and many to mean: ‘more than was needed’.
    Examples:
    Peter has got too many friends. Sarah has so much money at the moment; she
    must be earning a lot! John makes as much money as Sarah.
    Too is often used before much and many to mean: ‘more than was needed’.
    Example:
    I bought too much fruit at the market.
    N.B. Equipment, luggage and information are all uncountable nouns and
    therefore will always use much.
    For example:
    – How much equipment does your studio have?
    – You have too much luggage to board the plane!
    – There isn’t much information on your CV. Please make it more detailed….
    We usually use much and many with questions and negative statements:
    – How many bank accounts do you have?
    – How much time does it take to get to your house from here?
    We sometimes use much and many in positive statements when:
    They are used with so, as or too:
    – Peter has got too many friends.
    – Sarah has so much money at the moment; she must be earning a lot!
    – John makes as much money as Sarah.
    Too is often used before much and many to mean: more than was needed.
    For example,
    I bought too much fruit at the market. We’ll never eat it all before it goes off! and
    There are too many people in the waiting room...
    We use ‘so’ rather than ‘very’ before much and many in positive statements to
    emphasise a large quantity of something. So, you would say: We have so much
    work to do today! and not We have very much work to do today!
    As much as or as many as are used to make a comparison and show that
    something is the same as or equal to something else. For example, there are
    as many participants at this meeting as there were at the previous
    one.
    Generally, it is more common to use lots of/a lot of in positive statements. 
    This is more informal:
    - The shop had a sale on so I spent lots of money!
    - We have a lot of time so there’s no need to rush.
    - Anna has lots of friends so she’s always busy.
    - I think a lot of music sounds the same these days.
    If much or many are used before articles (a/an, the), demonstratives (this, that),
    possessives (my, your) or pronouns (him, them), they are followed by ‘of’:
    - How much of this book have you read?
    - Not many of the students come from privileged backgrounds?
    - I couldn’t ride a bike for much of my childhood.
    - How many of them are under the age of 18?
    In spoken English, certain words are often omitted or left out. For example, we
    say this much or that much and use a hand gesture to indicate the amount or
    size as in: I’ll have this much cake. (use fingers to show the amount).
    It is also common to miss out the noun when it is obvious what is being discussed.
    For example,
     – ‘Could I have some apples, please?’
     – ‘Sure! How many would you like?’ (no need to repeat the word ‘apples’).
    We’ll never eat it all before it goes off!
    There are too many people in the waiting room.
    We use so rather than very before much and many in positive statements to
    emphasise a large quantity of something. So, you would say: We have so much
    work to do today! and not We have much work to do today!
    As much as or as many as are used to make a comparison and show that
    something is the same as or equal to something else.
    Example:
    There are as many participants at this meeting as there were at the previous
    one.
    If much or many are used before articles (a/an, the), demonstratives (this,
    that), possessives (my, your) or pronouns (him, them), they are followed by ‘of’:
    a) How much of this book have you read?
    b) Not many of the students come from privileged backgrounds?
     c) I couldn’t ride a bike for much of my childhood. 
    d) How many of them are under the age of 18?
    In spoken English, certain words are often omitted or left out.
    For example,
    this much or that much can be said and use a hand gesture to indicate the
    amount or size as in: I’ll have this much cake. (use fingers to show the amount).
    It is also common to miss out the noun when it is obvious what is being discussed
    For example:
    Can I have some apples, please?
    Sure! How many would you like? (no need to repeat the word apples). 
    Few vs. little
    Little and few are “quantifiers”. When they are used on their own, they have a
    negative meaning to suggest ‘not as much or not as many as might be expected’.
    But be careful! When little and few are used with an article – a little or a few–
    both words mean ‘some’ and have a positive meaning. 
    When is few used and when is little used?
    Little is used with singular, uncountable nouns and few is used with plural,
    countable nouns to mean ‘not as much’ or ‘not as many’.

    For example:
    The play made little sense to me, but I’m glad you enjoyed it. (sense is
    uncountable) = the play didn’t make much sense.
    She didn’t want to go, but she had little choice. (choice is uncountable) = she
    didn’t have much choice.

    There are few people that I think would be qualified for the job. (people is
    countable) = there aren’t many people qualified for the job. There are few
    tourists at this time of year so the beaches are nice and quiet. (“tourists” is
    countable) = there aren’t many tourists.

    A little is used with singular, uncountable nouns and a few is used with plural,
    countable nouns to mean ‘some’: 

    We have a little time before the play starts so why don’t we get a drink? We
    have a little space in our car if you want a lift. There are a few good candidates
    that have applied so I’m sure we’ll find someone for the job.

    We stayed in Spain a few days before going on to France.
    As well as having negative meanings, few and little on their own are also quite
    formal and are generally not used very much in everyday spoken English. It is
    more common to instead use a negative sentence with ‘many’ or ‘much’. For
    example:

    The play made little sense to me, but I’m glad you enjoyed it. = The play didn’t
    make much sense to me. She didn’t want to go, but she had little choice. = She
    didn’t have much choice.

    There are few people that I think would be qualified for the job. = There aren’t
    many people.

    There are few tourists at this time of year so the beaches are nice and quiet. =
    There aren’t many tourists. 

    Compare these different meanings:
    It’s so cold outside and I have few warm clothes on so I’m really cold!
    It’s so cold outside but I have a few warm clothes on so I’m ok.
    I have few friends in the city, so it can be quite lonely.

     I have a few friends in the city, so I’m settling in well.

    End of unit assessment 4.5

    A. Choose and underline the correct word to complete the sentences below:
    1. How much/many/many of the guests ordered lunch?
    2. She has too much/many/much of ideas and can’t focus on one thing
    at a time!
    3. We don’t have much of/much/many sunshine at this time of year.
    4. How many/much/much of people live in your block of flats?
    5. How many/much/much of the assignment have you completed so far?
    6. How many/many of/much money will I need for 2 days in London?
    7. There has been many/much/much of debate about the new regulations.
    8. Too many/much/much of people are driving in London and the traffic is
    a nightmare.
    9. There isn’t much of/many/much time before our flight so let’s go straight
    to the gate.
    10. My son doesn’t have many/much/much of friends at school.
    B. Fill in the gaps with either few, little, a few or a little:
    1. There’s _______ money in my pocket. Do not expect anything from me.
    2. We have _______ options for our next holiday and they all look good.
    3. You have _______ time before the next class if you want to get a drink.
    4. Let’s spend _______ days reviewing the proposal as I don’t want to
    rush it.
    5. There’s _______ point in repeating yourself because she never listens!
    6. I have very _______ colleagues that I would trust in a crisis.
    7. _______ is known about the singer’s early life.
    8. Your dessert was delicious! Can I have _______ more, please?
    9. The staff training course takes _______ days to complete.
    c. Write a composition about the importance of personal finance in
    economic and social activities.

    

    ◄UNIT 3: SOCIAL COHESIONUNIT 5: HEALTH AND SANITATION►