LEARNING ACTIVITY SHEET

Grade Level/ Grade 12 – BUSINESS FINANCE Quarter 1

Subject

Topic FINANCIAL PLANNING PROCESS Week 3

MELC Identify the steps in the financial planning Competency 4

process.

Specific • identify the steps in the financial planning Duration 1 hour

Objectives process.
• apply the steps in the financial planning Score
process.

I. Let’s Know

Financial Planning is the process of evaluating the financial status and optimal utilization
of financial resources for the achievement of an organization’s goals and objectives. Financial
Planning helps to protect businesses from policies and practices limitations, and aids in
mapping out its financial future. Financial Planning is one of the popular financial courses for
working professionals due to the increasing demand for reliable and knowledgeable personnel.

Financial Planning Process

Step 1: Establish goals and define a client-planner relationship

Create a goal or objective where the planner introduces a prospective client and explains
the financial planning process guided with open-ended questions, like these:
a. How do you feel about investing to start a small business?
b. Why do you think you feel that way?
c. What are your financial strengths and weaknesses?
d. How do you earn enough income to sustain the business and your personal expenses?

Step 2: Gather relevant data

Identify resources and gather relevant information needed to make decisions for the proper
strategies and financial products to attain your goals. For example,
a. What is your time schedule?
b. Do you want to achieve this goal in one year, two years, five years, or seven years?
c. What is your risk tolerance?
d. Do you accept the market risk that might fail you to achieve your investment goals, or a
portfolio with limitation be a better option for you?
e. Also, how far have you already achieved your goals?
f. Have you saved enough cash yet?
g. Do you invest in life insurance?
h. Have you already drafted your living will?
i. Do you have children and what are their ages?

Step 3: Analyze and evaluate data

The financial data gathered about the client are analyzed and evaluated by the financial
planner. This is to understand the client’s financial status with respect to the needs, goals,
and objectives, and determine the gap between the two and the path that must be followed.
The assessments and analysis will be customized based on the needs of the client.

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Step 4: Develop the financial plan with recommendations and alternatives
Financial Planning requires devising alternative solutions that are achievable for each
individual. With so many different variables to consider, your plan needs to develop, which
means to evolve with your needs but remain within your capabilities and risk tolerance.

Step 5: Implement the plan

It is implementing the plan by working to achieve the plan! This may sound simple, but
implementation is the most difficult step in financial planning. It takes focus and passion to
implement the plan. This is the most difficult step because concrete and applicable plans
can be developed and revised, but it is still a document. It requires a steady focus and
discipline to implement the plans and stay with it.

Step 6: Monitor the progress of the plan

Monitor and review carefully the Financial Plan and determine contingency plans to evolve
and change. Once the plan is created, it's essentially a piece of previous information. This
is why the plan needs to be monitored and changed from time to time.

Characteristics of an Effective Plan

In planning, our target goal is to optimize the financial resources of the client. These
criteria may be followed for effective planning:
1. Specific – to be specific in the area for improvement must be targeted.
2. Measurable - an indicator of progress is to be able to quantify or at least suggest.
3. Assignable - identify specific people and assign tasks.
4. Realistic - with available resources, announce what realistic results will be attained.
5. Time-related - indicate the schedule(s) that the result(s) will be achieved.

II. Let’s Perform and Practice

In a whole sheet of paper, write down your 5, 10, 15-year personal financial plans (check items
that apply). Briefly describe each item chosen.

Items 5 Years 10 Years 15 Years

1. Earn a college degree (may pursue graduate school)
2. Find a sustainable job and start a professional career.
3. Start saving for the future (marriage, children, family).
4. Apply for pre-need plans (Health and Life Insurance)
5. Start a business.
6. Earn postgraduate degree
7. Buy a house and lot.
8. Buy a decent car.
9. Operate a business company.
10. Getting married.
11. Raise a family and children.
12. Manage a business company.
13. Plan for retirement.
14. Purchase land for farming.

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RUBRIC:

FOCUS CONTENT ORGANIZATION

4 Distinct and sharp points Substantial specific and Sophisticated arrangement
made about the topic. illustrative content demonstrating of the idea.
a robust idea.
3 Apparent point made Operational arrangement of Generic use of ideas utilized
about the topic. content that sustains a logical in words and sentences in
thought with some subject creating the essay.
transitions.
2 No apparent point but Limited content with an Confused or inconsistent
shows evidence of a inadequate explanation. arrangement of content
particular topic. thoughts.
1 Minimal knowledge of Minimal and superficial content. Minimal control of the
the topic. content arrangement.

III. Let’s Connect and Analyze

Case Study: Present solution to the case problem using the financial planning process.

Mark is a 24-year-old young guy who has just completed his college course. He is not
paying for any rent expenses because he lives with his parents, his parents paid for his
education, and he does not incur any educational loans. He takes care of his own expenses
and also helps out a little with the household expenses. A typical urban youngster. Mark knows
the importance of saving early for a better future, thanks to him being a finance graduate.
He has a few plans for his future. He is considering to start planning for his wedding
and get married after 4 to 5 years. His wedding budget is about 200,000 pesos. A decent car
is one of the things he wishes to own. He plans to buy a low-cost house in the next 10-11
years. He believes that a practical house today is worth around 500,000 pesos. He thinks that
saving for his retirement is an important goal. These are the things he learned from his
parents.
After graduation, Mark decided to open a business of his own. The problem is that his
capital is too small to open a business.

RUBRIC:

SCORE 4 3 2 1
MAIN IDEA Clearly presents the There is the main Vague sense of the No main
main idea and support idea supported main idea. idea.
it throughout the throughout most of
assignment. the assignment.
CONTENT The topic is well The subject is well The idea is present, The content
presented, developed, presented; but the content is is not
and supported with however, it lacks not sound and solid. sound.
specific evidence and evidence and facts. Only a few pieces of
facts. evidence were
presented.
ORGANIZATION All paragraphs have Most paragraphs Some paragraphs The
clear ideas with have clear ideas have clear ideas, paragraphs
smooth transitions. but lack good but transitions are lack clear
transitions. weak. ideas.
FOCUS The purpose is clear. Not clearly stated Shows limited No
the aim of the awareness of the awareness.
discussion. purpose of the
discussion.

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 IV. Let’s Answer

Multiple Choice: Choose the letter of the correct answer.

Situation: Jenny, a new business management graduate is planning to start a business. She
consulted a financial planner to manage her investment to be used in her business.
She was encouraged by her family to manage a restaurant because she is
interested and had a background experience in food business. Jenny consulted
for more information to support her plans.

1. Jenny is in what stage of the financial planning process?

A. Analyzing and evaluating data
B. Establishing goals.
C. Developing the financial plan.
D. Gathering relevant data

2. After completing the tasks in no. 1, she is already focused and determined to apply
the plan. She is already in what financial planning process?
A. Developing the financial plan.
B. Monitoring the financial plan.
C. Implementing the plan.
D. Gathering relevant data.

3. Jenny is aware that the first step of the financial planning process is
A. Gathering client data, including goals
B. Analyze and evaluate present conditions and needs.
C. Establish goals and define client-planner relationship.
D. Implement the recommendations.

4. Jenny learned that the last step of the financial planning process is
A. Gather client data, including goals
B. Monitor the progress of the Financial Plan
C. Analyze and evaluate present conditions and needs
D. Implementing the plan

5. The most difficult step in financial planning

A. Defining client-planner relationship
B. Gathering relevant data
C. Analyzing and evaluate the data
D. Implementing the plan

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 V. Let’s Explore and Let’s Create

Instruction: Search in the internet for any Financial Planning Process Case Study and submit
a reaction paper report using the Six Financial Planning Process.
RUBRIC

FOCUS CONTENT ORGANIZATION

4 Distinct and sharp points Substantial specific and Sophisticated arrangement
made about the topic. illustrative content demonstrating of the idea.
a robust idea.
3 Apparent point made Operational arrangement of Generic use of ideas utilized
about the topic. content that sustains a logical in words and sentences in
thought with some subject creating the essay.
transitions.
2 No apparent point but Limited content with an Confused or inconsistent
shows evidence of a inadequate explanation. arrangement of content
particular topic. thoughts.
1 Minimal knowledge of Minimal and superficial content. Minimal control of the
the topic. content arrangement.

Writer: Editor:

Joseph Omar S. Apolinar Maria Elisa B. Valde

Teacher II SHS Teacher III SHS
Daniel R. Aguinaldo NHS Francisco Bustamante NHS

Evaluator:

MAY ANN V. NABLE

Teacher III
Daniel R. Aguinaldo National High School

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 ANSWER KEY

Grade Level/ Grade 12 – BUSINESS FINANCE Quarter 1

Subject

Topic FINANCIAL PLANNING Week 3

MELC Identify the steps in the financial planning Competency 4

process.

II. Let’s Perform and Practice

The following should be checked in their answers.

1. How the student explains the items in the five-year plan.

2. How the student explains the items in the ten-year plan.
3. How the student explains the items in the 15-year plan.
4. How the student used the financial planning process in the given situations. (additional
marks are given for applicable thought, content, and grammar in the explanation).

III. Let’s Connect / Let’s Analyze

The following should be checked in their answers.

Step 1: How did the student establish goals and define client- planner relationship?
Step 2: How did the student gather relevant data on the business plan?
Step 3: How did the student analyze and evaluate data
Step 4: How did the student develop the financial plan with recommendations and
alternatives to the plan?
Step 5: How will the student do the implementation of the plan?
Step 6: How will the student monitor the progress of the plan?

IV. Let’s ANSWER

1. D 2. C 3. C 4. B 5. D

V. Let’s Explore and Let’s Create

The following should be checked in their answers.

1. How the student identifies the financial planner to establish its goals.
2. How the student identifies the planner to gather relevant data of the business.
3. How the student identifies the planner to analyze and evaluate data.
4. How the student identifies the planner to develop its financial plan with
recommendations and alternatives to the plan?
5. How the student identifies the financial planner implement the plan.
6. How the student identifies the financial planner to monitor the progress of the plan.