Assignment 1

Course Name : VAC

Semester : 1st
Paper Name : FINANCIAL LITERACY
Faculty : RAJNEESH PRAKASH VERMA
Last date to submit assignment is January 02, 2023
Guidelines:
Students have to make a list of the following details and information to be written on the cover
page of your assignment solution
A. Program Full Name
B. Course Title
C. Roll\Registration Number
D. Student Name
E. Date

Instructions:
a. Use only foolscap A4 size paper to write your assignment
b. Use a blue or black pen to write your assignment
c. Students have to write an assignment solution with their own help.
d. Handwritten or typed assignment will be considered for evaluation
Q.1. The following worksheets are a simple format for keeping of accounts.
(Write in the space provided in the table, use separate sheets for different months.
You may want to note down daily expenses in a simple notebook and then
summarize them in the format given below)
Account for the month _________________
Enlist in the space given below, all the expenses that make the ‘Individual Expenses’ and ‘Other
Expenses’ in Previous Worksheet. Ask yourself whether each of the expense in the list is a need,
want or a waste. And write down this category in the adjoining column.

Q.2. Kirti calls for help!!! My husband and I are both teachers, working for a private school.
We get a net pay of about Rs.60,000 and Rs.48,000 in our individual salary accounts.
Though this seems to be a good amount of money, by the end of the month there is
hardly anything left in any of the accounts. We are a family of 5—us, our 2-year-old
son and my parents-in-law. My in-laws manage the household. My husband and I are
so busy that we hardly get any time to look after our household and our finances. The
problem is that for last three months, we have been having a payment overdue on our
credit card, and no money in any of our accounts to pay the bills. I am beginning to
worry, how we are going to manage further. With our son growing up, the expenses
are also increasing. Please suggest us a simple and less time- consuming process to
save.

Q.3. Write down your financial goal in bold letters below:

(E.g. I want to buy a Bajaj Pulsar bike that costs Rs.40,000 now within a year.)
 Note all the financial goals that you can think of in the table given below. This table
should give you a list of all your goals at a glance.

Q.4. I just learnt about financial goal setting and want to give it a shot. 1 am a 21-year-old
working in a call center for the last one year. I make good money (Rs. 2.4 lakh p.a.), and
I wish to use it wisely. So, I have set following goals for myself:
A. Save for further education (2-4 years’ timeline).
B. Invest in stock markets to help my money grow (immediate).
C. Buy a house—my company gives home loans when I complete 5 years in the
job.
D. Fund a holiday to a nearby hill station.
E. Repay credit card debt of Rs. 25000.
Geetanjali seems to have good intentions but is she getting it right? Write your
understanding of Gita’s approach.

Q.5. Ramesh asks. Hi! 1 am 21 years old. I have joined work in the IT sector six months back
and earn Rs.25,000 per month salary (i.e., about Rs.12,000 take-home after deductions).
Last six months that I received my salary, I almost spent everything—treating friends,
buying gifts for my near and dear ones, buying myself some feel good stuff etc. But my
father, a bank manager, wants me to cut down on the spending and start saving. Save
for what? My life looks cool now and I want to enjoy it fully.
Q.6. Prepare a cash budget/cash book of monthly expenses and track spendings for the past
two months.
Q.7. Mr. Vijay borrows ₹10,00,000 at 9% compounded annually. Equal annual payments are
to be made for 10 years. However, at the time of the seventh payment the individual
elects to payoff the loan. How much should be paid?