LYCEUM-NORTHWESTERN UNIVERSITY

OFFICE OF THE INSTITUTE OF GRADUATE AND PROFESSIONAL STUDIES

Dagupan City

Report
For
FINANCIAL MANAGEMENT FOR SUSTAINABLE
DEVELOPMENT

Submitted to the
Institute of Graduate and Professional Studies

SUBMITTED TO:

DR. MA VICTORIA TRINIDAD

SUBMITTED BY:

Laguardia, Diana Marie D.

2ND Semester S.Y. 2019 – 2020

PRETEST
Direction: Encircle The correct answer.

D 1. The process of planning and managing a firm’s long-term investment is called?

A. Working capital management

B. Financial depreciation

C. Agency cost analysis

D. Capital budgeting

A 2. The corporate officer generally responsible for tasks related

to cash and credit management, financial planning, and capital

expenditures.

A. Corporate treasurer

B. Director

C. Corporate controller

D. Chairman of the board

A 3. The management of the firm’s short-term assets and liabilities is called:

A. Working capital management

B. Capital structure

C. Financial structure

D. Management analysis

B 4. A business owned by a single individual is called?

A. Propriety owner

B. Sole proprietorship

C. Partnership

D. Corporation

D 5. The division of profits and losses between the members of

a partnership is formalized in the?

A. Indemnity clause

B. Indenture contract

C. Statement of purpose

D. Partnership agreement

B 6. A business formed by two or more individuals or entities is

called?

A. Sole proprietorship

B. Partnership

C. Corporation

D. Cooperative

C 7. A business created as a distinct legal entity composed of

more than five individuals or entities is called?

A. Sole proprietorship

B. Partnership

C. Corporation

D. Cooperatives

C 8. The power to create money is given by the constitution to:

A. State government

B. Congress

C. The federal reserve

D. Commercial banks

C 9. Money serves as:

A. Substitute for equity

B. Precaution against inflation

C. A medium of exchange

D. A risk-free liability

A 10. One of the major disadvantage of a sole proprietorship is?

A. There is unlimited liability of the owner

B. Simplicity of decision making

C. Low organizational costs

D. Low operating costs

C 11. Which of the following statements best represents what

finance is all about?

A. How political, social and economic forces affect

corporations.

B. Maximizing profits

C. The study of how people and businesses make

investment decisions and how to finance it

D. Reducing risks

B 12. From the financial point of view, a company that decides to

develop new product is making:

A. Financing decision

B. An investment decision

C. A capital structure decision

D. A cash flow decision

D 13. Finance managers need to interact constantly with:

A. Marketing managers

B. Accounting staff

C. Management information system staff

D. All of the above

D 14. The true owner of the corporations are:

A. Holders of debts issues of the firm

B. Preferred stock holders

C. Board of directors

D. Common stockholders

A 15. Assume that you are starting a business. Further assume

that the business is expected to grow very quickly and a great

deal of capital will be needed soon. What type of business organization would you choose?

A. Corporation

B. General partnership

C. Sole proprietorship

D. Limited partnership
LEARNING ACTIVITY
Activity 1:
Answer the following:

1. How much are you spending for a month?

In a new normal life during this pandemic situation I have lots of realization not to spend more
money but then still have a responsibility to pay and some needed. The following are:

The total of 13,400 + Lyceum tuition in every semesterly

2. Identify the expenses you incurred monthly ex. (Fare/gas,

foods, clothing, bills, tuition of children etc. ).

A. Payment

-electric bills 700 monthly

- converge1500 monthly

- home credit 2200 monthly for 6 monthly only

B. Tuition

- MA (lyceum tuition fee) 12,000 per semerter

- Children’s tuition Fees (4000 every exam)

C. For foods and etc. 5000 pesos

1. How many savings out of your compensation or income?

As of now I can’t save money for I have many bills to pay and for my kids tuition fee but then I’m
trying to operate our business for the additional income

As a teacher my salary is 16,200

And in our business we have 30,000 in a month

2. Do you have your investment? If yes, what, in particular?

Yes I have ,

1. Cellphones
2. Laptop
 3. Motor parts Shop
4. Raider motors

 This activity is letting the students recognize the value of

savings and possibly investing. It reveals that most of the

activities they do involving decisions on where to use their

compensation or income is a Finance Decision.

Activity 2:
Make a personal case study about budgeting and investment.

Use the scientific format:

 Introduction

 Methods

 Results

 Discussion

INTRODUCTION

Diana Marie D. Laguardia ! At the age of 27 years old, graduated at World Citi College-Aeronautical and
Technological College North Manila accepted a position as an Faculty Professor for Hotel And Restaurant
Management at the same school where I’m graduated.

In the year 2019 a freshmen degree holder was her first job is a sales officer at Ancar Motor Corp. for 2
months and suddenly got a call for the 2 nd job as a faculty teacher. It was a very risky and can’t define
what future in her 1st job because her salary was not really feel contentment. And now for her 2 nd job
was very comfortable and proud. Can’t imagine she will become a professor for not asking but for the
prayer what God will give and what His plan.

Her salary is 16,200 in a month and she’s very contented and also invested with her partner a motor
Thai parts and accessories located at San Carlos City Pangasinan and thankful that their investment was
good and going strong.

And for some information she has a two kids , grade 2 and grade 3 pupils in a private school in
Pangasinan. She is happy and proud to have even she born her 1 st baby at the age of 17 year old and the
2nd is at the age of 18y/o. But the still stand straight and live life righteousness and very thankful to God.
METHOD

There are many ways to budget and there are many methods listed out there. In my years of studying
and now a degree holder, these are the methods that I have found to be the best

1. The Balanced Money Formula

This method, popularized by Elizabeth Warren and Amelia Tyagi, is also called the 50-20-30
method.

The idea is to spend 50% of your total income on your needs, 20% on saving, and 30% on wants.
The 50-20-30 method is very simple to maintain, which is one of the reasons why I find it to be
among the best budgeting methods.

Your needs consist of things like your mortgage, utilities, clothing, groceries, gas or other
transportation, healthcare. and gas money.
Basically, these are things you couldn’t live without. And by that I mean actually can’t live
without.
This does not include things you say you can’t live without.Your savings consist of your
retirement goals, emergency fund, and debt repayment.
So if you are trying to pay off your debt, it would fall into this category.
It’s a similar concept to what Dave Ramsey advocates with having only a small emergency fund
and then foregoing saving further in favor of paying off your debt.Your wants are exactly that.
This is pretty much everything else.Cable TV, internet, dining out, clothing beyond what would
be considered basic (you do not need that new dress that just came out), vacations, that shiny
new iPad, and junk food would all be included in this category.

2. Cash-Only Budgeting
This is exactly how it sounds.

Also, called “Envelope Budgeting,” Cash-Only Budgeting is where you use actual cash (those are
the green pieces of paper you rarely see in the U.S. these days)to use as your spending money.
There is no room for plastic here.What you do is allocate your money to your separate
categories and then withdrawal cash out from your bank account. You then put the cash in
envelopes labeled to match your categories.
Let’s use a grocery budget as an example.

If you have a 5000 a month grocery budget, you would withdrawal $400 in cash from your bank
account and then place that money into your envelope labeled “Groceries.” Fairly
straightforward.

3. Zero-based Budget
This method sometimes comes with the tagline “give every dollar a job.” If you hear that term,
you know they’re talking about the Zero-based Budgeting Method.

Zero-Based Budgeting is where the money you have in income matches exactly what is going out
of your account
 With this method, if you were to save and spend exactly what was in each of your budgeted
categories, you wouldn’t be positive or negative. You would literally be at $0.

4. The “No Budget” Budget

This is essentially how it sounds.

The only thing you have to pay attention to is your bank account balance. There isn’t even a
need to track your expenses.

Believe it or not, this actually works for some people.

Ideally, you would also want to automate paying all of your bills as well as make them as regular
as possible, i.e. the same amount every month.

This way you can simply add up all of your bills, make sure that money is in the right account,
and then not have to worry about it from there.

5. Values-based Budget
The Values-based Budget is another budget that may be better for a little bit higher level of
income.

This method relies on quite a bit of soul-searching and self-discovery because the “values” in the
name are your values.

The first time I read about this method was on Young Adult Money.

The hook of this method—which still involves tracking your spending—is to spend money based
on your values rather than worrying about how much you are spending in specific categories.

For this method, you’ll want to write down what you’re allowing yourself to spend your money
on based off of what you value.

So if you value travel, write that down. If you value discovering delicious coffee or new cuisine,
write that down. Whatever isn’t on your list, you wouldn’t really spend money on.
6. Create-Your-Own Budget
This is the method I use.

My budget is a combination of several different kinds of budgets. I use portions of almost every
one of the other six methods I’ve outlined above

In order to create your own budget, you have to first do some research and learn about the
budgeting methods available to you.

You also want to ask yourself exactly what you want out of your budget. Knowing your options
will give you a good start in creating your own budget.
RESULT
To Create Your Own Budget to invest
As I mentioned in number 6, creating your own budget is going to be one of the best things I can
do for myself and for my money. I’m not going to lie to you, though. There are some things
about a budget that are not fun to do at first, but they have to be done

Step 1: Figure Out Your Lowest Possible Income (LPI)

Step 2: Figure Out Your Expenses and How They Relate to Your Income
Step 3: Figure Out What You Value
Step 4: Cut Expenses that Don’t Match Your Values
Step 5: Spending and Saving Your Way
Step 6: Figure Out What to Do with the Extra Money

DISCUSSION

Once you figure out how much money you're spending and where you're in a better position,
take the necessary steps to put your financial future front and center.
A common myth about investing is that a big fat bank account is required just to get started. In
reality, the process of building a solid portfolio can begin with a few thousand—or even a few
hundred—

Strategies to Start
Whether you’re planning to invest a little or quite a lot, in safe bets or high-risk gambles, these
steps should help get your plans off on the right track

Automate Savings
The diligence to dependably set aside a certain amount in savings every month will reap rewards
in the long run. If you lack the willpower or organization to do that alone, technological help is
available via various smartphone and computer applications.

The Bottom Line

Investing can get complicated, but the basics are simple. Maximize the amount you save and
your employer’s contributions. Minimize taxes and fees. Make smart choices with your limited
resources.

SELF CHECK
Summarize the discussion by pointing out that, for individuals,
Finance is concerned with decisions about:
1. How much of their earnings they spend
2. How much they save or how much they need
3. How they invest their savings
4. How they raise additional funds they need

1. Breakdown of Cost of Living Budgeting Categories

 Utilities: 3000 phone / cell phone / gas / cable / internet.
Food: 3000
Transportation: 1000
Medical: 1000
Personal & Discretionary: 500
Tuition: 4000 and other school fees
Savings: 2000

2. Opening a savings account is a great way to start saving

It is essential to start saving money as early as possible in life.
"The earlier you can begin to save money — no matter how small or large the amounts, the
more likely you will be to set up healthy habits for the future.

Many sources recommend saving 20 percent of your income every month.

According to the popular 50/30/20 rule, you should reserve 50 percent of your budget for
essentials like rent and food, 30 percent for discretionary spending, and at least 20 percent
for savings.

But to me for my savings what my moneys remain that will be my saving. For as of now lots
of payments but still try to save money as long as I can.

As an employee and a small business owner it was a very helpful to fulfill what we need in
our daily life. To save money even small digits will help for our future and for my kids need.

3. The key to building wealth is developing good habits—like regularly putting money away
every month
Once you have a little money to play with, you can start to invest.

“Try the cookie jar approach” It mean try to save money even not on online or bank account
but for have a place to save money like piggy bank or a jar bank.

There are plenty of ways to start investing with little money, with many online and app-
based platforms making it easier than ever. All you have to do is start somewhere. Once
you do, it will get easier as time goes on, and your future self will love you for it.

4. How we raise additional fund to make our business expand is to :

- Apply for a loan

Even as technology creates new ways of raising capital, traditional financing products
remain the primary way small businesses fund their operations.

- Raise capital by asking family

Raising capital through family is a viable option for many. And it helps to raise your small
business.

- Get the capital you need to drive forward

The key lesson here is that you have many options for financing your business. Don’t get
discouraged if one doesn’t work out. By demonstrating due diligence and being resourceful
and persistent, you can raise the capital you need.