FINANCIAL MANAGEMENT

Peer Counselors Training Egerton University by: Matata Muthoka Student Counselor

money
Complete the sentence; Money is for.

Sources Of Income
Money experts agree that there are two types of

incomes, namely: i. Active income ii. Passive income

Active income
is what is earned after working. Its what people

receive in form of wages after working or the salary every end month. One does not get active income if they dont work. Passive income is the money an individual earns without working. It includes money given as pocket money for students, rent from leased property, dividends from shares owned, interest etc.

Sources Of Pocket Money

Being given- by parents, guardians, siblings,

pastors, well wishers Sponsorship/scholarship- donors, charity organizations Working- Teaching, insurance sales, sale of clothes etc. Allowances- This is the money that the students are entitled to, by virtue of behaving or being in a certain way.

Sources Of Pocket Money cont Sale of belongings. Selling personal things to

raise some money e.g. phones, clothes, shoes, etc. Business/Trade- sale of clothes, investment clubs, running tuck shops, meals. Stocks- some students ventures in it using tuition fees, savings, borrowing money from friends and relatives

Money wasteful habits

Wasted energy Daily coffee trips Lottery tickets Megabites (mbs) Airtime Clothing Gambling Meals buying what you can cook, throwing leftovers Alcohol ATM fees Bad health habits Credit card interest Make up

Wasteful habits cont

Leaving Peanut Butter, Mayonnaise, and Other Spreads in the Spoon Overusing Household Cleaners Using Paper Towels to Clean Up Large Spills Turning the Shower On Well in Advance of Taking a Shower Squeezing a Long Glob of Toothpaste onto Your Toothbrush Leaving the Water on While Brushing Your Teeth Using the Toilet as a Trash Can Using Too Much Toilet Paper Medication Transport Photocopying

Things Many Young People Spend Their Pocket Money On:

Edibles- This could be food, drinks and beverages etc.

Clothes-Choice of cloth and place of purchase also

affects the price though the quality may be the same Personal effects-Phone, pen, handkerchief, towel, mattress, sheets, bed covers, undergarments, rings, earrings, bungles, necklaces, wrist watches, clocks, wall hangings, bags and hangers and many more

cont
Paying fees/dues- like fees, debts Trips and safari- to parks, home, other universities Giving- includes offering and tithes in the church,
contributions towards sickness, death or helping the unfortunate.

TRACKING YOUR POCKET MONEY Use of receipts

Accountability- show prove of purchase
Lodging complaints- incase of defects in items

purchased Tracking finances- to check how much was used in a day, month or year.

Commonly Un-Receipted Transactions:

1. Religious contributions 2. Charitable contributions 3. Money gifts 4. Petty cash lending 5. Transport costs 6. Street purchases 7. Street meals8. Saloon and kinyozi services

Cont
9. Grocer goods 10. Money we give to friends and family members 11. Shop or store transactions 12. Call girl/boy services

Common Receipted Transactions Include:

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Supermarket transactions Bank transactions Learning institutions Some church contributions Long distance travel and courier services Book store Mobile transactions Hotel and restaurant transactions Online transactions Fuel and gas stations

Way forward to financial management

Keep receipts 2. Ask for a receipt 3. Have own receipt book 4. Keep a recording book 5. Keep all ATM receipts 6. Soft copy receipt 7. Match budget, shopping list with monthly tracked transactions
1.

Cont
8. Using a receipt or a recording book you are able to identify unintentional purchases, or point of impulse buying 9. Use a finance tracking software
Information adapted from the book pocket money by Matata Muthoka

POCKET MONEY
Its the management of the small amounts that make the difference.

Dean of students financial information

The office of the dean of students facilitates students to get : 1. HELB Loans 2. Scholarships if and when available 3. Distribution of funds/ Donations incase of donations. Like Rattansi fund. 4. Lobbying for students to get CDF

In conclusion
The hardest challenge is to be yourself in a world where everyone is trying to make you be somebody else. --E.E. Cummings (American poet)
HOPE YOU BE YOUR SELF DESPITE THE CHALLENGE. THANK YOU and GOOD BYE.