Cost-price – An expense incurred for a product or service being sold.
Selling-price – The amount a customer is willing to pay for a product or service.
Revenue – Total income generated by a business from the sale of goods and services.
Profit – It’s the surplus which remains after deducting all expenses and taxes associated
Saving – Is the act of spending less than you earn in income and placing the remainder into a reserved account for later or emergency use.
Investment – An asset or an item acquired with the goal of generating income or appreciation.
Expenses – Is the cost of operations that a company or individual incurs to generate revenue.
Budget – Is an estimation of revenue and expenses of a specified future period of time and is usually compiled and re-evaluated on a periodic basis.
Have you ever wondered why and how you constantly run out of money in most cases even if you had plenty of it???? The definite answer is yes! Well, that’s because you were never taught how to handle money at home or at school, we are made to believe that cash is meant for purchases and not even cogitate about long-term savings and investments.
Firstly, save as much money as you can from home tasks, rewards or pocket money you might receive, open up a bank account or ask your parents to open a bank account for you, do some house chores and get a holiday job when you are old enough, create a budget and make sure that you separate your spending money from your savings. Apply the art of delayed gratification when handling your money.
Steps on how to open a bank account:
• Make sure you are old enough to open a bank account.
• Choose the bank which is best for you.
• Pick the type of account you want.
• Visit your bank and ask to open an account.
• Ask important questions before you finalize your account.
• Supply the necessary information to create your account
• Keep the account documents you received in a secure place.
Things you need to know about money:
• Never spend money before you can earn it.
• Don’t chase money, instead be a money magnet. Be valuable with your skills, the more people will come to you to solve their problems the more money you attract to yourself.
• Invest time before you invest money. Learn about money and its options before you invest anything.
• Do not take up bad debt. This means someone else will own your life, since you have to work hard to pay them back.
• Spend less than you earn. Control your thirst of your spending take-over. Control your emotions and budget.
• Have a budget for everything you are going to spend your money on always.
• Always have a secret account. An account that nobody else does not know about. This is called a CRISIS ACCOUNT.
Questions
1. What is the first thing that comes to your mind when you see and receive money?
2. Do you spend money on stuff you have not budgeted for?
3. Does being broke make you angry? If yes how can you prevent it?
Ndjuluwa97 Academy 