SAVIOUR TERM E-LEARNING NOTES

CLASS: JSS 3

SUBJECT: BUSINESS STUDIES

SCHEME OF WORK

1. Communication (a) meaning of Communication (b) Types or Methods of Communication (c)

Means of communication: post, telephone, World Wide Web and courier services. (d)
Importance of communication in business. (e) Services provided by Communication Agencies.
2. Setting Simple Business Goals: (a) meaning (b) acronym (c) analysis.
Simple single business plan: (a) Simple single business plan (b) Procedure for drawing up simple
single business plan.
3. Business Letters and Simple Tabulation
(a) Meaning of Business letter (b) Types of Business letter (c) Parts of a Business letter (d)
Production or printing of business letter (e) Simple Tabulation (i) Creation of simple tabulation
(ii) Tabulation or centering.
4. Consumer Protection Agencies: (a) Meaning of Consumer (b) Need for Consumer Protection
(c) Regulators (Agencies)(d) Roles and Responsibilities of Consumer Protection Agencies.
5. How To Make Complaints: (a) Meaning of complaint (b) Types of complaints (c) Steps in
lodging a complaint (d) Writing a complaint letter.
Reasons for banning chemicals (ii) Procedures for banning chemicals not suitable
for use (iii) Reasons for restricting chemical not suitable for use (iv) Procedure for
restricting chemical not suitable for use.
6. MID-TERM TEST
7. How To Seek Redress: (1) Meaning of consumer rights and redress (2) Ways of seeking
redress (3) Benefits of providing redress.
8. Personal Finance: (a) Meaning of personal finance (b) Uses of Personal finance (c) Sources
of finance for individuals (d) Consumption and choice (e) Scale of preference (f) Modesty:
(1) Meaning (2) Attributes: (i) Simplicity (ii) Living within one’s means (iii) Contentment
etc.(g) Effects of living modestly: (i) Self-control (ii) Low tendency of corrupt practices (iii)
Prudence etc. (h) Link between Modesty and Extravagances. (i) Preparation of individual
budget.
9. Revision
10. Examination
WEEK: 1

Topic: COMMUNICATION

MEANING OF COMMUNICATION AND TYPES OF COMMUNICATION

MEANING OF COMMUNICATION

Communication can be defined as the giving and receiving of messages or information between
two or more parties. It is an aid to trade. For communication to be effective, it must be clearly
received, understood and acted upon.

Communication involves the sender, the message being sent and the receiver. This is illustrated
below:

Sender Information or Message Receiver

Communication is not a one-way affair. The receiver also communicates the sender either
directly or indirectly.

TYPES OF COMMUNICATION

There are three types of communication namely:

a. Oral communication: This includes face-to-face discussions, radio transmission,

telephone discussions, lectures, etc
b. Written Communication: Examples are writing letters, sending e-mails, report
writing, newspapers, magazines, etc.
c. Non-verbal Communication: This can be in form of silence, shaking of the head, sign
language (for the deaf), raising your eyebrow, etc.

MEANS OF COMMUNICATION

Means of communication can be broadly stated into 5 types: (a) Post (b) Telephone (c) World
wide web (d) Courier service.

(a)..Post:- This is a process of sending letter, mail or documents through the Post Office. There
are different types of letters e.g Ordinary, Express, and Registered letter. Others are Parcel post,
speed post, Air mail, Business reply system, Surface mail, Recorded delivery, Telegram and
Cable, Franking Machine, Telex, Private mail Bag and Post Office Box, and fax.
[b].Telephone:- This is the process of dialing someone either using wire or mobile phone. There
are different types of wireless network, e.g Standard Trunk Dialing, International Subscribers
Dialing, Local calls, Conference calls, Telex services. Mobile phone service providers are:-
MTN, GLO, AIRTEL, ETISALAT and STARCOMMS.
(c) World wide web:- World wide web comprises of the internet, web site, intranet, satellite, e-
mail, and on line chart.

(d) Courier Service:- These are agencies noted for prompt service delivery. Examples of
Courier agencies are NIPOST EMS, Red Star Express, UPS, TNT, DHL, Aramex, Federal
Express, and IFEX. Other transportation agencies that have courier services are Peace Mass
Transit, ABC, Delta Line, and Edo Line.

IMPORTANCE OF COMMUNICATION

1. Brings awareness of government policies, programmes, activities and other things

happening around the world.
2. It brings about closer contact between the buyer and the seller thereby enhancing
business efficiency.
3. It improves mail order business.
4. It is an aid to trade.
5. It improves chances of obtaining finance.
6. It facilitates speedy delivery of goods
7. It motivates staff or workers because they are stakeholders.
8. Communication promotes advertisement which leads to quick sales and enhanced profit.
9. Communication assists in economic development of a country.
10. It ensures and guarantees business transactions without being on transit.

SERVICES PROVIDED BY COMMUNICATION AGENCIES

POSTAL AND TELEGRAPHIC SERVICES

The post office is the communication agency responsible for providing postal and telegraphic
services. The Government body in charge of activities of the post offices is Nigerian Postal
System (NIPOST).

Post office Box:

This is popularly called P.O. Box. It is a facility provided by NIPOST to individuals or business
organizations who wish to receive their letters and parcels before the normal delivery period.
Two keys, original and duplicate are given to the owner of the box to enable him access his mails
at times convenient to him.

Private Mail Bag:

This is popularly called P.M.B. It is a facility similar to the P.O. Box, with the difference that
their owners are given just a key while NIPOST retains the duplicate. NIPOST opens the bag
puts in letters and re-locks the bag, which can only be opened by the owner of the box. Private
Mail Bag attracts higher fee than Post Office Box.

Record Delivery:

This is a system of recording postage and delivery of packet, parcel or correspondence.

Additional charge is made for these.

Post Restante:

This is a service provided by the Post Office for tourist or travelers who do not have a definite
address. The Post Office takes possession of the mail until the recipient comes for it.

Franking Machine:

NIPOST grants license to individuals and business organizations before can be allowed to use
Franking machine. It is best suited where large number of letters is to stamp. Franking machine
imprints stamp or frank one each envelope. Messages franked are not posted but are rather
bundled together and handed in at specified counter at the post office.

Postal Order:

Postal orders can be purchased at post offices. The buyer orders the Post Office to pay a named
person the stated sum of money at another Post office. The buyer fills a form containing the
necessary details. Postal orders are used within a country and it can be crossed. The Post office
collects a commission for this service called Poundage. However, poster orders are not legal
tenders i.e. they cannot be used in place of currency. It is valid for six months.

Money Order:

A Money order can be also used to send money to any part of the country. To enjoy this service,
you need to pay some money to the post office, fill the form and state some vital information
which the recipient will be asked to supply before collecting the money at the other post office.
The money order has the following information: (a) The amount of money required (b) Full
name of the recipient (c) The Post office to make payment (d) The name of the sender. Money
orders are safer than postal orders, and they are more expensive because the commission on them
is higher. Money order is usually valid for six months.
Telex Service

A telex system is a fast electronic means of written communication within and outside the
country. Many businessmen prefer telex messages to telegrams because it is faster and more
confidential.

Fax Service

Just like telex, fax is a written communication system, except that it is faster than telex. It is
operated between two people who have access to fax machine. Fax services are commonly used
by newspaper houses, banks, insurance companies, etc.

INTERNET SERVICES

The Internet is a system which links together computers all over the word and makes it possible
for people to communicate with each other irrespective of their location in the world.

The Global System of Mobile Communication

The GSM is the latest and fastest means of communication. Messages can also be sent through
the phones. The major GSM service operators in Nigeria are MTN, Globacom, Airtel,
Starcomm, etc.

Courier Services

These are means by which private organizations collect and deliver mails and cargoes quickly
and safely. Courier companies must be registered by NIPOST before they can operate.
Examples of courier firms in Nigeria are DHL, FEDEX, UPS, TNT, EMS (operated by NIPOST)

WEEK: 2
TOPIC: SETTING SIMPLE BUSINESS GOALS AND SIMPLE BUSINESS PLAN

ANALYSIS OF GOALS: Goals can be analyzed using an acronym called the SWOT
Analysis. SWOT stand for:
S - Strength
W -Weakness
O - Opportunities
T – Threat.

The internal environment comprises of Strength and weakness, while the external environment
entails Opportunities and Threats.
S – Strength:- This is the characteristics of a business or project that gives it an advantage over
others. Some of the factors for strength are expertise, quality, low capital requirement, stock and
product requirement.

W – Weakness:- weakness are characteristic that place the business or project at an disadvantage
over others. Some of the features are Capacity, time and marketing.

O – Opportunities:- elements that the project would exploit to its advantage. Some of the traits
that can make a business have more opportunities are: seasonal demand, customer’s loyalty,
unique product, and change in technology and market.

T – Threat: negative effects of competitors or customers. Past, present and potential competitors,
changes in advertising or marketing strategies, change in government policy. Change in taste and
fashion, economic down turn, and relocation of customers.

LIMITATION OF SWOT ANALYSIS (STRENGHT, WEAKNESS, OPPORTUNITY

AND THREATS

1. It is difficult to address uncertain or two sided factors, such factors that could either be
strength or a weakness or both. With SWOT analysis e.g., you might have a prominent
location, but the lease may be expensive.
2. It doesn’t provide solutions or offer alternative decision.
3. It doesn’t priorities issues.
4. Can generate too many ideas but not help choose which one is the best.
5. It van produce a lot of information but not all of it is useful.

Meaning of simple single Business plan: it is a blueprint of a business plan. It is a document

that states the goals and objectives of a business, and how to achieve it.

Characteristics of a Business plan: Every plan must have the following features. The feature is
a collaborative process either it is a short- or long-term goal, the most widely used frame work is
an acronym called S-M-A-R-T.

SPECIFIC: Goal must be well defined to inform employee exactly what is expected, when and
how much with specific goals, manager can easily measure progress toward goal completion.

MEASURABLE: It must provide milestone to attract progress and motivate employee toward
achievement.

ATTAINABLE: Success needs to be achievable with effort by an average employee, not too
high or too low.

RELEVANT: One should focus on the greatest impact to overall company strategy.

TIME BOUND: Establish enough time to achieve the goal, but not too much time to undermine.
PROCEDURES FOR DRAWING A SIMPLE BUSINESS PLAN
(a) Background/Introduction/Preamble: this contains products, services, name, logo, vision and
goals.

(b) Market Research: these are empirical study about want, pricing strategies, and market
competitors.

(c) Marketing: This entails creating awareness through advertisement.

(d) Production: These involve methods to be followed when producing, standard and
information.

(e) Organization/Management: This shows the employee and their responsibilities.

(f) Finances: This indicate amount to start the business, the source of the fund, and what to
purchase.

(g) Action Plan: This are target, i.e where, when, what, why, and how of your plan.

Sample of a single Business Plan

Date: 1st January 2018

Loan/Finance: Money required to start the business e.g #12,000,000.00.

Name of owners: Eng Austria and Pat Chloe.

Address of owners: 12 Amsterdam Street, Lancaster.

Telephone: +234 0800 0805 345

E-mail:- Austriachloe@[Link]

Name of business: Pastries Limited.

Product or service: Production, distribution and maintenance of household appliances.

Logo:

Type of ownership: Limited Liability Company.

WEEK: 3

TOPIC: BUSINESS LETTER AND SIMPLE TABULATION.

Business letter are Information, correspondence, or mails are conveyed between individuals and
organizations.

Types of Business letters layout

There are three types of business letter layout, they are (1) Fully block (2) Modified block (3)
Indented block.

(1) Fully block letter format:- All the line of the letter are aligned to the left margin, and
there are no indented line. Every line flushes with left margin. E.g

24 Okoro Road,
Benin City,
Edo State.
( 4 single spaces)
1st December 2015
(double space)
Mr. Onyeabor Benson,
Crystal Fountain Limited,
4 Olorunsogo Street,
Industrial Estate,
Mushin,
Lagos.
(Double spaces)
Dear Mr. Benson,
(double space)

Body of the letter.

(Double space)
Yours sincerely,
( 4 single spaces)
( Signature)
(Name)
(double space)
(Enclosure)

(2) Modified Block letter format:- The return address, date closing and signature start just to
the right of the centre of the page or may be flushed with the right margin. The recipient address,
salutation, and body of the letter begins at the left margin. Indent your return address, the
closing, typed named, optional enclosure to the approximate centre of the page, (position 4.25 to
4.5). Begin at top margin.

Springfield Academy
. 1600 Main Street
. Western Avenue
. Victoria Island
. Lagos.
. (Four single spaces)
. 23rd July 2014
. (Double space)
Ms Esther Adeyemi H.O.D
Humanities Department,
Covenant University,
Ota,
Ogun State.
(Double space)
Dear Ms. Adeyemi
(double space)
(body)
. (Double space)
. Yours faithfully,
. (4 single spaces)
. (Signature)
. (Name)
. (Double space)
. (Enclosure)

(3) Indented letter format:- This is similar to modified block business letter layout but the first
line of each body paragraph is indented 5 character spaces from the left margin.

Parts of a Business Letter

(1).Printed Heading/Letter heading: This encloses the logo, name, address, and information of
the firm.

(2) Date: the day the letter was written.

(3) Name and address of the recipient

(4) The address of the writer.

(5) The reference number

(6) Salutation

(7) Heading

(8) Body of the letter

(9) Attention line

(10) Complimentary close and or enclosure.

Production or printing of Business Letter

(i)..Connect your system to the printer.

(ii) If it is a new printer it will go through a check and print out a page.

(iii) Install the printer on your system.

(iv) Open a file document that you want to print.

(v) When you are ready to print, go to file and print set up.

(vi) Click on the Printer’s icon; go to the file and then print.

Simple Tabulation

A table is a structure made of rows and columns to organize data.

(i).Creation of table: To set up your first table, do the following; (a) start a new Microsoft word
document. (b) From the menu bar click on table (c) From the menu that drops down, click insert.
(d) A sub-menu appears and from the sub menu, click Table (5) When you click insert table, you
get a dialogue box popping up, it enters the number of row/s and table/s. you click the OK
button, and the required table shows.

(ii) Tabulation/columnar work: To ensure goods display of your production work. It is

pertinent to center your type document. Documents can be centered vertically and horizontally.
To tabulate your work, you must do the following:

(1) Know the dimension of your paper i.e. the length.

(2) Count the characters and spaces to be typed.

(3) Subtract the Paper dimension from the characters and spaces.

(4) Start typing line from the sizes you derive.

WEEK 4
TOPIC: CONSUMER PROTECTION AGENCIES

(A) MEANING OF CONSUMER PROTECTION

Consumer protection is the government regulation made to protect the interests of consumers
against exploitation by producers or manufacturers and ensuring maximum satisfaction. Hike in
price, substandard goods, varying prices and inconsistent weight are some of the actions of
producers that consumers are protected against.

(B) NEED FOR CONSUMER PROTECTION

These are the needs/reasons for consumer protection:

(I) Lack of concern: - Producers generally does not have concern about
consumer welfare. They are only interested in their profit or gain
(II) Illiteracy and Ignorance:- Many consumers are ignorance of their right.
(III) Protection against harmful, counterfeit and dangerous goods
(IV) To ensure production of quality and durable goods.
(V) To educate the Public:- many consumers are not aware of the side effect of
consuming certain goods, and the knowledge about the goods.
(VI) Maximum satisfaction:- To ensure consumer derive optimum utility
(VII) To check deceptive weight, and measurement.
(VIII) To guarantee or give warranty to goods not earlier inspected.
(IX) To reduce or prevent hoarding.
(X) To ensure advert that disclose deceptive immoral, exaggerated, or
misleading information are curtail

REGULATORS/AGENCIES OF CONSUMER PROTECTION WITH THEIR ROLES

AND RESPONSIBILITIES.

These are bodies, organization, association or government agencies that promote consumer
protection, some of which are:

Consumer Association or Consumer Protection Council of Nigeria:- their roles include:

i. They educate consumer

ii. Help to provide redress.
iii. Ensure consumers that are exploited are compensated.
iv. Apply to court to obtain justice
v. Ensure manufacturer produce high quality product.
vi. To eradicate or remove from the market hazardous goods
vii. To expose or publish banned product.
viii. To organize and undertake campaign that will create public awareness.
ix. To issue guidelines to Manufactures in relation to their obligation.
x. To encourage trade industry and professionals to develop and enforce quality
designed to safeguard consumer interest.

Department of Petroleum Resources (DPR):- This is a federal government responsible for

i. Ensuring Filling Station sells fuel at approved pump price.

ii. Responsible to check that the volumes of fuel sold correspond to amount
shown on the sales meters.
iii. Check the activities of hoarders in filling station.

National Agency for Food and Drug Administration Control (NAFDAC):-It’s also a federal
government agency responsible for:-

i. Elimination of fake and adulterated food, drug, water and cosmetics.

ii. Enforces the law and prohibit importation and sale of fake food and drug.
iii. Educate consumers on the danger inherent in taking harmful goods.
iv. Empowered by statue to confiscated, arrest and destroy harmful goods and
offenders.
v. Oversees the production of food and drugs, and safeguard the nation’s health.
vi. Establish a quality assurance system.
vii. Ensure compliance with standard, and specification approved by the agency.

Service com: a federal government agency established as a result of maladministration,

corruption and inefficiency in government circles, to ensure:-

i. In-human treatments are reported.

ii. Consumers have access to quality demand.
iii. Redress is pursued in case of grievances or service failure.

National Drug Law Enforcement Agency:

Works against drug trafficking, categories if drug are Indian hemp, cocaine, heroine and
marijuana.

Environment protection Agency:

i. Concerned with maintaining high quality standard of hygiene and environmental

health especially in public places.
ii. Protect and safeguard the natural environment.

National Agency for the Prohibition of Traffic in Person and other related Matters (NAPTIP):

1. Protection of the under-aged and vulnerable people.

2. Eradicating and prosecuting human traffickers within and outside the borders of Nigeria.
Standard Organization of Nigeria (SON): Also a government agency responsible for:-

i. Production and sale of high-quality product.

ii. Ensuring both local and international goods conforms to standard.
iii. Test product, and assign number to certified product.
iv. Convince consumers that tested and certified product have met required
standard

National Electricity Regulatory Council: a governmental agency responsible for:-

1. Regulating the electricity rates paid by consumer.

2.. Monitoring and regulating electricity industry

3. Issuing license to market participant.

4. Ensuring compliance with market rules and operating guidelines

Rent Tribunal:- Setup by government to:

i. Control rent charges and regulate activities of Landlord.

ii. Ensuring aggrieved tenant seeks redress.
iii. Resolving conflict between landlord and tenant.
iv. Reviewing and moderating rent charged.

Professional Bodies:

They are formed to regulate the practice of their profession, protect member’s right and
consumers interest. Some of the Professional bodies are Nigeria Bar Association (NBA), Nigeria
Medical Association (NMA), Institute of Chartered Accountant of Nigeria (ICAN), Chartered
institute of Bankers (CIBN), The National Association of Nigerian Nurses and Mid-wives, etc.

Manufactures Association: Association of Producer.

i. They ensure that the producer produce goods that are of high quality.
ii. Ensuring that members don’t engage in unethical practices.
iii. Fight against non- arbitrary prices.

Public Health Department of Health:

Enforces sanitation and hygienic of restaurant, abattoir, and shops.

Federal Ministry of trade and Industry:

Ensure registration of business entity, regulate import and export and ensure compliancy with
trade and industry rules.
WEEK 5
TOPIC: HOW TO MAKE COMPLAINTS:

A. MEANING OF COMPLAINT
A complaint is an objection to something that is unfair, unacceptable or otherwise not up to
normal and expected standard. There are two types of complaints namely: Justified complaints
and unjustified complaints.
STEPS IN LODGING A COMPLAIN:
Steps for lodging/filing a complaint:
1. Identify the core issue know your right: Focus on the actual events that took place.
2. Determine the proper complaint lodging procedure: Each setting will require a different
procedure. Contact an administrator to inquire about the necessary process..
3. Lodge/file a verbal complaint: Certain complaints may be lodged over the phone or in person.
4. Fill out a complaint form: A standard complaint form may be required, especially in schools,
large corporation or government settings.
5. Write a complaint letter: narrate in writing format, what transpired proof of occurrence, and
your resolution, about what you want or the required solution.
6. Follow up on your complaint lodging/filing: If you have not heard back within the expected
time frame, contact the complaint recipient to inquire about the delay.
(E) WRITING A COMPLAINT LETTER.
The following procedures are to be followed when writing a complaint letter:
(i) Address the letter to the appropriate person, i.e name and address of the person.
(ii) Introduce yourself. If the recipient of the complaint letter does not know you, provide enough
relevant and personally identifiable information, such as your name, position, address, phone
number and your relationship to the offender(s).
(iii) Describe the events or acts that transpired. Recount the relevant conversations, dates,
transactions and any action you have already taken. Provide all necessary information.
(iv) Ask for the appropriate action to be taken. Explain your expectations, whether you are
expecting a refund, an apology or some other remedy.
(v) Request a letter receipt notification. Ask the recipient to reply to indicate that your
letter was received and to clarify the time frame for resolving the issue.

Reasons for banning chemicals

Ban is placing embargo on goods or product. The major reasons for banning goods are:
(1) For the protection of human and public health.
(2) For the protection of the environment.
(3) For the avoidance of diseases such as cancer, hormonal imbalance, infertility, red
blood destruction, chronic illness, congenital ailment, etc.
Reasons for restricting chemicals not suitable for use
Restriction is making chemicals not easily available. Some of the reasons are:
(1) To control and check the use of such chemicals.
(2) To ensure compliance with the International Food and Chemicals Control Treaties.
(3) To avoid death, temporary incapability, and permanent harm to human and animals.
Procedures for banning chemicals not suitable for use
(1) A notice called Prior Information Consent is sent.
(2) Submission of proposal.
(3) Enquiry and checking for conformity.
(4) Public consultation (6 months)
(5) Advise on enforceability.
(6) Opinion by risk Assessment Committee and draft opinion by SEAC.
(7) Public consultation on the SEAC draft opinion ( 2 months)
(8) Opinion by SEAC
(9) Draft amendment of Annex XVII by the Commission
(10) Decision taking
(11) Enforcement.

WEEK 6:
GENERAL TEST

WEEK 7
HOW TO SEEK REDRESS

MEANING OF CONSUMERS REDRESS:

It is a process of providing a set of rules and guideline that protect all consumers. It is a process
of setting right a wrong or providing for fair settlement of justified claims.

CONSUMER RIGHT:

Consumers right are privileges entitled to consumers and they are:

1. Right to satisfaction of basic needs: access to basic essential goods and services, adequate
food, clothing , shelter, healthcare and education
2. Right to be informed: consumers need to be informed about choice and to be protected
against dishonest or misleading advertising and labeling
3. Right to get truthful and honest information about the goods and services which are
purchased.
4. Right to choose between products of different qualities and prices which are required to
satisfy their needs. It is the consumer’s right to choose a level of quality and performance
equal to the price which he/she is prepared to pay
5. Right to be heard
6. Right to safety of goods and services bought
7. Right to redress: settlement of choice claims. It includes the right compensation for
misrepresentation or shoddy (inferior) goods or unsatisfactory services
8. Right to consumer education
9. Right to healthy environment

WAYS OR PROCEDURES OF SEEKING REDRESS:

Redress can be sought in the law court and through the Consumer Protection Agency. However
the procedures for seeking redress are:

(1) Report or return the product as soon as possible.

(2) Request for a replacement.
(3) If the Manager does not act on your complaint proceed to the Consumer protection
agency.
(4) Take a long with your documents like invoice and letter of complaint vital for
mediation.
(5) Be sure to attend the mediation conference.

If the office or warehouse is at a distance. Take the following steps:

(1) Report to the nearest branch.

(2) Give the name, address, contact, person involved, branch or location. Include your name,
address and phone number.
(3) State the problem clearly, describes the product completely including the code or
identification marks.
(4) Attach the photocopies of receipt or invoice.
(5) Forward the letter of complaint or redress to the Manufacturer or distributor whose name
is on the label you bought the product.

BENEFITS OF PROVIDING REDRESS

1. Amendment of initial agreement

2. Peaceful resolution of dispute
3. It improves access to justice and facilitates more consistent decisions
4. Provides sufficient safeguards against potential abuse on consumers
5. It promotes market confidence and public relation profile.
6. It enhances product research and improves company’s services.
7. It creates better relationship between customers and service providers.
8. It prevents further harm.
9. It helps standard regulators identify systematic problems that require intervention.
WEEK 8

TOPIC: PERSONAL FINANCE

(A) MEANING OF PERSONAL FINANCE

Personal finance refers to the methods in which an individual manages his money assets and real
assets.

Examples of money assets are –cash and money market instruments.

Examples of real assets are – land, buildings, furniture’s, equipment’s etc.

(B) USES OF PERSONAL BUDGET

(I) It makes us live within our income.

(2) It shows how money is to be spent and being spent.

(3) It helps to control expenditure and ensure self or financial discipline.

(4) It guarantees maximum satisfaction.

(5) It enables families communicates their financial conditions to members.

(6) it inculcates saving habits

(7) It enforces lessons learnt from popular financial equation.

(8) It indicates the need for additional or surplus budget.

(C) SOURCES OF FINANCE FOR INDIVIDUALS

The following are common sources of finance for individuals;

1. Loans from banks, individual, cooperative society and financial institution.

2. Personal savings, profits on business, commission, rents or rates from bank or people

3. Borrowing from friends and relations or family members.

4. Credit facilities from supplier, Producers or marketers.

6. Wages, salaries, award, gift, or promotion from advertising or other agencies.

(D) CONSUMPTION AND CHOICE

Consumption is defined as satisfaction or utility. It is the end of production process. choice is

defined as the making decision or selection from a list of items.
(E) SCALE OF PREFERENCE

This is the arrangement an individual needs in order of priority or importance.

MODESTY

(i) MEANING OF MODESTY

This is a situation whereby an individual is spending or living within his /her available income.

(2) ATTRIBUTES OF MODESTY

These are the attributes of modesty:

1. Simplicity.

2. Honesty.

3. Prudence.

4. Contentment.

(G) EFFECT OF HONESTY

(a) It gives peace of mind.

(b) It ensures self-control.

(c) It makes to be highly esteemed.

(d) It relieves us of stress.

(e) It instills a low tendency for corrupt practices.

(f) It elevates our moral status and spiritual lifestyle.

(g) It promotes friendliness and social peace.

(H) LINKS BETWEEN MODESTY AND EXTRAVAGANT.

The link between Modesty and Extravagant is that one is the opposite of the other.

1. Modesty ensures simplicity while extravagant is excessive or unnecessary spending.

2. Modesty is living within your means, not borrowing; extravagant is living above your
means, borrowing to live.
3. Modesty entails careful spending; Extravagant is careless or thoughtless spending.
4. Modesty guarantee honesty and prudency, Extravagant leads to corruption and expensive
lifestyle.
5. Modesty reveals person with a high level of discipline, but extravagant dictates
individuals that has a low level of discipline.
(I) PREPARATION OF PERSONAL OR INDIVIDUAL BUDGET.

A budget is a tool for national planning. It is a tool for financial planning. Before preparing a
budget, you take the following instruction into consideration.

(i) Identify a goal (ii) Review your bank and credit card statement for the past
three months (iii) Categorize your expenses. E.g rent, loan prepayment, child
welfare and utility bills (iv) Plan bills that occurs only once or twice a year.
(v) List all your income for the month (vi) Subtract your total expenses from
your total income (vii) Review your monthly spending and adjust your
expenses category as needed.
(ii) The Process or procedures for preparing budget
(a) Estimate your income: daily, weekly and monthly.
(b) Define major expense categories and set the budget level.
(c) Develop a worksheet to accumulate daily expenses.
(d) Use the budget summery sheet to monitor and control expenses.
(e) Periodically review the budgeting system to make it flexible.
(f) Allocate a certain amount for miscellaneous expenses.
(g) Save regularly.
(h) Start of by making a monthly budget, thereafter a yearly budget.
(iii) Budget Preparation
To prepare a budget, you must have an idea of what you should expect. You
can view a data compiled from Federal office of Statistics how four family
spend their income. Compare these with your expenditures and categorize the
area you fall in. The major items are: Income items, expenditures items, and
irregular items.
(i) Income items: (a) Salaries (b) Wages (c) Rates (d) Commission (e) Rent
(f) Pensions (g) Allowances (h) Sales (i) Cooperative earning (j) Alimony
support (k) Public assistance

(ii) Expenditures Items: (a) Rates (b) Mortgages (c) tax (d) utility bills (e)
mortgage (f) medicals (g) Food (h) Transportation (i) Insurance (j) Repairs
and maintenance (k) Recreational or Entertainment (l) Licenses. (m) Food (n)
Drinks.

(iii).Irregular Items: (i) Lunch at work (ii) Car repairs (c) Haircuts (d) Day
care (e) Laundry (f) Day care (g) Emergency fund.
Savings = Income – total expenses.