Sahadeo Financial Literacy and Money Script

A Caribbean Perspective
1. Auflage 2018
ISBN: 978-3-319-77075-8
Verlag: Springer International Publishing
Format: PDF
Kopierschutz: 1 - PDF Watermark

E-Book, Englisch, 259 Seiten

Reihe: Progress in Mathematics

Since the financial crisis, everyone is more aware of the need to be financially literate. This book covers a wide range of topics and assures the reader that understanding of one's money script and more particularly making changes (if necessary) would result in  more effective and responsible managing and  handling  of one's financial affairs. It is a misnomer that graduates of tertiary education are financially literate or are qualified to make financial decisions. In fact, they are particularly vulnerable in making poor financial decisions as many students do not undertake courses in financial education and they therefore have limited financial knowledge. Training in financial literacy through university-based financial education programs is one method of addressing personal finances and financial stress among students. This book presents the key components of financial education designed to address the growing concerns associated with high levels of debt, abuse of credit cards, home ownership, savings and investments, risk management, and retirement. The chapters on entrepreneurship and business planning provide a roadmap for successful new ventures.  The book is an excellent resource for students, those interested in developing or enhancing their understanding of money matters and financial wellbeing, and trainers involved in financial education, counseling, and planning.

Christine Sahadeo worked as an Audit Senior, Assistant to the Inspector of Banks, CEO/Director of Subsidiary of the  Massy Group, Minister in the Ministry of Finance for the period 2003-07. In 2008 she was appointed Senior Lecturer at the University of the West Indies (UWI), St. Augustine. There she  embarked on many social programs including the  launch of  Habitat for Humanity Campus Chapter (UWI), Financial Literacy: Train the Trainers, an In-Service Training program for Accounting, Auditing and Taxation Students (ISTAATS) and the Young Entrepreneurs Association of the University of the West Indies (YEA UWI) in 2012. She was the chair of a publicly quoted company and chaired companies both in the private and public sectors.

Autoren/Hrsg.

Sahadeo, Christine

Inhaltsverzeichnis

1;Dedication;5
2;Acknowledgments;6
3;Contents;9
4;List of Figures;11
5;List of Tables;12
6;1: A Review of Financial Literacy Initiatives in Selected Countries;13
6.1;Trinidad and Tobago;14
6.2;Launch of the National Financial Literacy Programme (NFLP);15
6.3;The Introduction of Financial Literacy Training at the University of the West Indies;16
6.4;The Collapse of Colonial Life Insurance Company Limited;18
6.5;How Were Groups Targeted?;20
6.6;Baseline Survey Conducted in 2007;20
6.7;Primary and Secondary Schools;21
6.8;Public Interventions;22
6.9;Jamaica;22
6.10;Jamaica National Building Society (JNBS);23
6.11;The Caribbean Institute of Media and Communication (CARIMAC);24
6.12;Barbados;26
6.13;New Zealand;27
6.14;Australia;29
6.15;United Kingdom (UK);30
6.16;Financial Literacy Training: A Global Perspective;31
6.17;References;31
7;2: Attitudes and Money Scripts, Goal Setting, and Budgeting;33
7.1;Attitudes and Money Scripts;33
7.2;Attitude ? Behavior;34
7.3;Healthy Money Scripts;35
7.4;Unhealthy Money Scripts;36
7.5;Money Vigilance: Elements of Both Healthy and Unhealthy Features;39
7.6;Goal Setting: The Importance of Goal Setting;39
7.7;Setting S.M.A.R.T. Goals;40
7.8;Setting Goals Using Different Time Frames;40
7.9;Goal Setting Versus Dreaming;41
7.10;Compulsory Goals Versus Optional Goals;42
7.11;Budgeting;42
7.12;References;44
8;3: Saving and Investing;46
8.1;The Importance of Saving: Savings Is a Habit, Savings is a Commitment;46
8.2;The Importance of Investing;49
8.3;A Review of Investment in Financial Instruments;49
8.4;Buying and Selling Stock;52
8.5;TTCD Statement;54
8.6;Account Number, Broker (Member), Date Range of Statement;54
8.7;Types of Transactions;55
8.8;TTCD Registrar Department;55
8.8.1;Types of Transactions;56
8.9;TTCD Registrar Requirements;56
8.10;Trading on the Stock Exchange;59
8.11;Initial Public Offering (IPO);60
8.12;Outperform Competitors on Key Benchmarks;63
8.13;Evaluate Options for Sourcing of Capital;64
8.14;Type of Information Needed to Make an Investment Decision;64
8.15;Earnings Per Share (EPS);65
8.16;Price Earnings Ratio (P/E);65
8.17;Dividend Yield;66
8.18;Understanding Issues and Transactions in the Financial Sector;66
9;4: Debt Management;68
9.1;Effective Management of Debt;68
9.2;Why Do People Borrow?;69
9.3;Main Types of Credit;70
9.4;Finance and Other Charges;71
9.5;Grace Period;72
9.6;Incentives and Rewards;72
9.7;What to Consider When Choosing a Credit Card?;72
9.8;Prevention of Credit Card Fraud;74
9.9;What Is a Debit Card?;75
9.10;Credit and Debit Card Safety Tips;76
10;5: Planning for Retirement;77
10.1;Retirement Planning;77
10.2;Importance of Planning for Retirement;77
10.3;Planning for Retirement;78
10.4;Evaluate the Adequacy of Employer’s Pension on Retirement;80
10.5;Statistics Regarding Retired Persons in Trinidad and Tobago;82
10.6;Popular Myths About Retirement;83
10.7;Main Sources of Retirement Income;83
10.8;Factors That Determine the Level of Retirement Income;84
10.9;What Is a Retirement Fund?;84
10.10;Planning and Budgeting;85
10.11;Retirement Benefits in Trinidad and Tobago;85
10.11.1;National Insurance Board (NIB) Retirement Benefit;85
10.11.2;Old Age Pension or Senior Citizens Grant;86
10.11.3;Free Bus Pass;86
10.11.4;Free Medical Care and Drugs;86
10.12;Retirement Benefits in Other Countries;86
10.13;Postponing or Delaying Retirement;87
10.14;Organizations for Retirees;87
10.15;Trade Unions and Retirees;88
10.16;Employers and Retirees;88
10.17;Financial Products for Retirees;89
11;6: Risk Management;90
11.1;Types of Insurance;90
11.2;Deposit Insurance;91
11.2.1;Making Claims;93
11.2.2;Deposit Insurance Coverage;94
11.2.3;Joint Accounts;96
11.2.4;Barbados;97
11.2.5;Jamaica;98
11.2.5.1;Exercise;98
11.2.6;Payment of Insured Deposits;98
11.2.7;Deposit Transfer;99
11.2.8;Depositors with Loan Accounts;99
11.2.9;Recovery of Uninsured Balances;100
11.3;Life Insurance;100
11.4;Motor Vehicle Insurance;101
11.4.1;Comprehensive Motor Insurance;102
11.4.2;Third Party Insurance;103
11.4.3;Full Third Party Plus Fire and Theft;104
11.4.4;Sum Insured;104
11.4.5;Limitations to Use;104
11.4.6;Young and Inexperienced Drivers;105
11.4.7;Open Versus Restricted Coverage;105
11.4.8;Policy Excess or Deductible;106
11.4.8.1;Comprehensive;106
11.4.9;No Claim Discount;107
11.4.10;Liability to Third Parties;108
11.4.11;Driving Without Insurance;108
11.4.12;Transfer of Unexpired Insurance Coverage;109
11.4.13;Claim Against Registered Owner;109
11.4.14;Purchasing Motor Vehicle Insurance;109
11.4.14.1;Helpful Hints;110
11.4.15;Certificate of Insurance;110
11.4.16;Genuine Brokers and Agents;111
11.4.17;How to Make a Claim: Motor Vehicle Accident;112
11.4.17.1;Procedure for making a claim for Theft of Motor Vehicle;115
11.4.17.2;Helpful Hint;115
11.4.18;Personal Injury;115
11.4.18.1;Helpful Hint;116
11.4.19;Claim in Excess of the Amount Insured;116
11.4.20;Writs or Summons;116
11.4.21;Complaints Process at the Office of the Financial Services Ombudsman (OFSO);117
11.4.22;What Do I Need in Order to Get Motor Vehicle Insurance?;125
11.5;Home or Property Insurance;125
11.5.1;Master Policy;126
11.5.2;Individual Policy;127
11.5.2.1;Helpful Hints;127
11.5.3;Homeowner’s and Householder’s Comprehensive Policy;127
11.5.4;Insured Property;128
11.5.5;Insured Perils;128
11.5.6;Uninsured Perils;129
11.5.6.1;Uninsured Perils: Useful Hints;129
11.5.7;Treatment of Excess;130
11.5.8;Homeowner’s Comprehensive Policy: Additional Coverage;130
11.5.9;Personal Liability;131
11.5.10;Average Clause and Reinstatement;132
11.5.11;Average Clause;132
11.5.11.1;Helpful Hints;132
11.5.12;Reinstatement Condition;133
11.5.13;Householders Comprehensive Policy;133
11.5.13.1;Helpful Hints;133
11.5.14;The Sum Insured;134
11.5.15;Replacement Value;134
11.5.15.1;Helpful Hints;135
11.5.16;Some Notable Extensions of Cover: Subject to Limits;135
11.5.17;Making a Complaint;136
12;7: Home Ownership;139
12.1;Legal and Other Formalities;139
12.2;Good Root of Title;142
12.3;Purchasing Land Only;148
12.4;Purchasing a Townhouse or Condominium;148
12.5;Costs and Fees in Buying Property;149
12.6;Other Key Factors;154
12.7;Assessment of Guarantors;154
12.8;Deed of Conveyance;155
12.9;Finalization of the Mortgage Contract;156
12.10;Foreclosure;159
12.11;Mortgage Market Guideline;160
12.12;The Mortgage Market Reference Rate (MMRR);161
12.13;Possible Causes for Delay in Completion of a Mortgage Transaction;163
12.14;Declaration of Financial Obligations;165
12.14.1;Debt Service Ratio (DSR);165
12.15;Joint Applications;166
12.16;Contract Details;167
12.17;Home Construction: From Foundation to Finish;168
12.18;Process for Building a Home;168
12.19;Prequalification Assessment;169
12.20;Construction Loans and Bridge Financing Facilities;169
12.21;Upon Completion of Construction;173
12.22;Finalization of Mortgage Contract;173
12.23;Other Considerations for Home Ownership;175
12.24;Types of Insurance Relative to Homeownership (See Chap. 6);175
12.25;Additional Considerations for Property Value Coverage;176
12.26;Renting Option;179
12.27;Rental Agreements;179
12.28;Termination of Rental Agreement;180
12.29;Rent-to-Own;180
12.30;Options, Issues, Pros, and Cons of Renting;181
13;8: Introduction to Entrepreneurship;182
13.1;Why Become an Entrepreneur?;182
13.2;Characteristics of Successful Entrepreneurs;183
13.3;Common Myths About Entrepreneurs;184
13.4;Types of Start-Up Firms;184
13.5;Changing Demographics of Entrepreneurs;185
13.5.1;Women Entrepreneurs;185
13.5.2;Minority Entrepreneurs;185
13.5.3;Senior Entrepreneurs;185
13.5.4;Young Entrepreneurs;186
13.5.5;Entrepreneurial Firms’ Impact on Society;186
13.5.6;Entrepreneurial Firms’ Impact on Larger Firms;187
13.6;The Entrepreneurial Process;187
13.7;Creativity, Innovation, and Entrepreneurship;188
13.8;Barriers to Creativity;189
13.9;How to Enhance Creativity;191
13.10;The Creative Process;192
13.11;Techniques for Improving the Creative Process;192
13.12;Focus Groups;193
13.13;Library and Internet Research;194
13.14;Protecting Your Ideas;194
13.15;Operational Management;196
13.16;Core Functional Areas of a Business;196
13.17;The Purposes of Functional Areas;196
13.18;The Administration Function;198
13.19;The Customer Service Support Function;198
13.20;The Distribution Function;199
13.21;The Accounting/Finance Function;200
13.22;The Human Resources (HR) Function;200
13.23;The Legal Department Function;201
13.24;The Information and Communication Technology (ICT) Function;201
13.25;The Marketing/Promotion Function;202
13.26;The Sales Function;203
13.27;The Production Function;204
13.28;Research and Development (R & D) Function;206
13.29;Emotional Intelligence (EI or EQ): The Key to Success;210
14;9: Basic Financial Accounting;213
14.1;Users of Accounting Information;213
14.2;Financial Versus Managerial Accounting;215
14.3;Elements of General Purpose Financial Statements: Assets, Liabilities, Owner’s Equity, Revenues, and Expenses;215
14.4;The Accounting Cycle/Process;217
14.5;The Double Entry Principle;221
14.6;Debits and Credits;221
14.7;Trial Balance;222
14.8;Unequal Totals in the Trial Balance;224
14.9;Analysis and Interpretation of Financial Statements;230
14.9.1;Liquidity Ratios;230
14.9.2;Equity Ratios;231
14.9.3;Activity Ratios;232
14.9.4;Profitability Ratios;234
15;10: Business Planning;236
15.1;Reasons for Writing a Business Plan;236
15.2;Start with a Business Strategy;238
15.2.1;Vision;238
15.2.2;Mission;239
15.2.3;Objectives;239
15.2.4;Values;239
15.2.5;Strategies;240
15.2.6;Goals;240
15.2.7;Programs;240
15.3;Preparatory Business Planning Issues;241
15.3.1;Develop an Outline Business Plan;241
15.3.2;Guidelines for Writing a Business Plan;241
15.3.3;Outline of the Business Plan;242
15.3.4;Elements of the Business Plan;242
15.3.5;The Oral Presentation of a Business Plan;247
15.3.6;Questions and Feedback to Expect from Investors;247
15.3.7;Updating the Business Plan;247
15.4;Guidelines to Prepare a Business Plan-An Outline Model;248
15.5;Discussion Cases;250
15.6;The Elevator Pitch;251
15.7;Easy-to-Follow Elevator Pitch Template;252
16;Index;254