x PODAR WORLD SCHOOL PY no ae FINANCIAL LITERACY & ENTREPRENEURSHIP Std. VI (Term I)Financial Literacy & Entrepreneurship Name: PR eee ee ee ee Nee ee School:Entrepreneurship PODAR EDUCATION: Podar World Schoolis a part of the Podar Education, First published in 2022 Second edition 2023, All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission in writing of Podar Education, or as expressly permitted by law, by license, or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Podar Education. All suggested use of the internet should be under adult supervision. PODAR WORLD SCHOOLPreface Financial Literacy and Enirepreneurship is a crucial ski that hos to be developed in earners from an early age in order to prepare them for their 21st century lives, The Sbiectiveisto build a healthy andife long relationship with money andto giverreallife experience and exposure to entrepreneurship. Podar Education with its vast experience in the field of education, has designed the Books fo encourage leamers to explore the relevant concepts from a very young age through an activity-based approach, latest interactive teaching techniques and hands-on leaming, The book has been designed basedon the following strategies: * Demonstration in the form of stories * Reallfe examples * Case studies * Ciitical-thinking questions * Objective and subjective exercises to impart knowledge-based learning. The books are free from rote leaming ond enable the leamers to understand ‘ond apply the concepts effectively. This book introduces the leamers to the basics of employable and entrepreneurial skills Such as decision-making, problem-solving, crifical thinking, analysing data, taking calculated risks, innovation, versatility, creativity, communication, collaboration, strategic thinking, planning, budgeting and setting goals. Practically, this book provides every ingredient fo kindle scholastic and co-scholastic urge within a leamer whichis an effort to incorporate holistic education into theschool curriculum We cre optimistic that this book will prove to be a boon to the leamers and wil serve as perfect teaching and leaming tool forboth the leamers and teachers. ~ Podar Education Content Development Team.Entrepreneurship. Preface Financial Literacy and Entrepreneurship is a crucial skill that has to be developed in learners from an early age in order to prepare them for their 21st century lives. The objecti isto build a healthy and life long relationship with money and to giverrealllife experience and exposure fo entrepreneurship. Podar Education with its vast experience in the field of education, has designed the books to encourage learners to explore the relevant concepts from a very young age through an activity-based approach, latest interactive teaching techniques and hands-on learning. The book has been designed based on the following strategies: + Demonsirationin the form of stories + Reallife examples + Case studies * Ciitical-thinking questions * Objective and subjective exercises to impart knowledge-based learning. The books are free from rote learning and enable the leamers to understand and apply the conceptseffectively. This book introduces the leamers to the basics of employable and entrepreneurial skills such as decision-making, problem-solving, critical thinking, analysing data, taking calculated risks, innovation, versatility, creativity, communication, collaboration, strategic thinking, planning, budgeting and setting goals Practically, this book provides every ingredient to kindle scholastic and co-scholostic urge within a learner which is an effort to incorporate holistic education into the schoo! curriculum. We are optimistic that this book will prove to be a boon to the leamers and will serve as aperfect teaching and leaming tool forboth the learners and teachers. -Podar Education Content Development Team.Key @ features The key features of the textbook ensure systematic learning and evaluation. ee TOWARDS THE GOAL EG Bring forth the learning outcomes of the chapter. STOCK UP THE IDEA Introductory question based on the previous knowledge. LET'S DEAL > Application and research based questions to supplement the learning process. GLOBAL EXCHANGE Case study correlating the topic to real-life. j ECONOMIC ESPIONAGE Auxiliary enthralling information. PIGGY BANK Meaning and explanation of technical terms and difficult words. FIN-O-PEDIA. aly Reference links that can be used for quick fact check and background research. © ® = aFin-O-Meter The primary objective of 'Fin-O-Meter is to prepare students to foster alearning spirit for the future by incorporating critical thinking, reasoning, and reflecting thus creating a quality learning environment. Sale, Some, Soo o € % CY LE MK: Basic factual Application based Critical thinking questions questions questions Bloom's Taxonomy Bloom's Taxonomy a popular tool in learning environments, is used to gauge the six cognitive skills of a learner, such as remembering, understanding, applying, analysing, evaluating, and creating. Questions in GAIN-O-METER INVEST-O-METER | COMPOUND-O-METER Blooms coveret Remember v Understand Apply Analyse ANAS Evaluate Create VvFinancial Literacy & Entrepreneurship FIRST TERM | STD - VI e Topic : ia | Page No. 1, Banking -Vidya's Money in Good Hands | 1 + Meaning of Banks = * Procedure to Open a Bank Account for Minors + Passbook * Cheque Book + ATM cum Debit Cards + ATM: Automatic Teller Machine + Infemet Bankit } Mobile Banking * Credit Facilly i 2. Naresh Learn about Financial Implication 24 Meaning of Income + Types of Income * Meaning and Difference Between Savings and Investments | + Meaning of Assets eae + Features of Assets + Meaning of Expense + Types of Expenses * Liabilities * Are Liabilities Good or Bad? 3. Vidyo's Millionaire Mindset jomenas Stock market “Mutual funds 4, Virtual is the New Normal 2 * Meaning of Digital Payments | * Digital Payment Methods + Importance and Benefits of Online Payments “+ Challenges of Online Payments= Banking: Vidya's © Money in Good Hands 4 EZ THE GOAL @ yoy VV VV YY < Meaning of Banks Procedure fo Open a Bank Account for Minors Passbook Cheque Book ATM cum Debit Cards ATNt Automatic Teller Machine Intemet Banking Mobile Banking Credit Facility * Good Borrowing, Bad Borrowing © Credit Cards * Loan What do you mean, when we say ‘money in good hands’? Explain. STOCK UP THE DEAVidya, a ten-year-old, was back from school. She and her grandfather were having their evening snacks together at the dining table. Her grandfather noticed that Vidya was quiet and looked lost in her thoughts. It was nice. | Vidya, But..... | how was 1 aaa | your day | at school? Is there something that you want to talk about? / Grandpa, my friend Renu went to the Bonk yestercay with her elder brother | to open @ bank account. She said that every month she will save her pocket Money and deposit in the bank and | notin the piggy bank. She also got two | small books from the bank with her | name on it. Grandpa please can |aiso | open a bank account?Do you think it is better to save money in the bank or a Piggy bank? Justify your answer. Ans. LET'S DEAL Grandfather smiled and said, “Of course! Why not? Let us visit the bank tomorrow.” Vidya happily hugged her grandfather. a : Yes! Vidya, But . before opening a Thank you Grandpa. Henceforth, even | can save my money in the paeceountl bank just lke daddy, mummy and you. want you to know certain new ‘aspects about the bank. Grandfather continued by stating that we can, not only save but also withdraw and borrow money from a bank. A bank is a financial institution that manages deposits, withdrawals and other ilar services. |t accepts funds from people trying to save ‘money and loans to those in need. A deposit refers to the act of transferring or saving Money in a bank for safekeeping. The act of withdrawing money from a bank is referred to as withdrawal, PODAR WORLD SCHOOLee eel a moa Loan is the process of borrowing money from a bank and repaying it over the time with interest. The functioning of a bank is governed by laws. Bankers are the people who run a bank. Vidya accompanied her grandfather to the bank the next day. The bank had many counters, such as a support desk, & @.cash counter, anew account opening desk and so on. Vidya was delighted. 7 They walked to the counter to open a new account. The banker cheerfully took them through the process of opening a new bank account. According to the banker, his bank provided the option of creating a minor account particularly suited for minors. However, there is a procedure which they must follow in ordet to create a new bank account. Procedure to Open a Bank Account for Minors Fistly, fill in the application form required to open a new bank account. Secondly submit the following documents: 1) Proof of minor's birth certificate. ! 2) KYC (know your customer) documents of the parent or guardian. 3) Aadhar card of a minor and parents. 4) Specimen signature of the minor above 10 years old and along with } parent's or guardian's signature. } a he se = PODAR WORLD SCHOOLawe +r a i Finally submit the copies of the above-mentioned documents along with the application form for verification. After which, the minor can deposit funds into the minor account. Once the process is complete, the bank will give a passbook and a cheque book. The junior account holder can also use the intemet banking facility with the help of their parents. Uncle what is a passbook, @ cheque book and a debit card? What do you mean by mobile banking and internet banking? sorte Passbook A passbook is a booklet that stores date-specific information about the deposits and withdrawals from the bank and the balance amount in the bank account. A passbook is a book wherein a bank records the regular transactions of a customer. It provides definite evidence of the banking transactions. Specimen of a Pass Book ~ Cheque | Withdrawals | Deposits | Balance: no. Sr.No. [Date | Particulars a eed 5 ati icc aadCheque Book A cheque book is a booklet that contains removable blank cheques, provided by a bank. A cheque is a negotiable document that tells a bank to pay a cerfain amount in the depositor's account. A bank or financial institution issues cheques fo customers in the form of a printed booket that is ready to use. State Bak OF India Hetersamaen oy XYZ erase acta on oR0ER | eet RUPEES Tom Crowns onty ewile ORe cn BRATHCITYGHEGUE Pin Po ata Write a cheque for ® 5,000 in the specimen given below with the help of your teacher: Date. Pay___ ee a OR BEARER! RUPEES. . SBA/CNo, | 1234 4567 1234 Name of the Bank (Address of the bank) Authorized Signatory ake Side 5 PODAR WORLD SCHOOL 6> v a ¥ o CARDHOLDER A debit card is a payment card that deducts money directly from a consumer's bank account when it is used. Debit card is linked to the bank account. The debit card facilitates in purchasing products without carrying the cash. You can use your debit card in most of the stores to pay for something. You just swipe the card and enter your PIN number on a key pad. You should not share your PIN number with anybody. The bank account has a limited amount of money, so one should use the debit card responsibly. You can also withdraw money from your bank account with your debit card through an ATM. a thn, PODAR WORLD SCHOOLThe banker continued. An Automated Teller Machine (ATM) is an electronic banking outlet that allows customers to complete basic transactions without the help of a banker or a teller. + Anyone with a debit card gets the access to cash, 24 hours * 7 days a week at the ATMs. + ATMs are convenient, allowing consumers to perform quick self-service transactions such as deposits, cash withdrawals, etc. + Fees is applicable for cash withdrawals through an ATM after few transactions. Visit an ATM with your parents and note down the procedure to withdraw money from the ATM. Ans, rey LET'S DEALInternet banking It is a type of banking in which all the transactions are carried out electronically over the intemet. A user can make financial dealings through the intemet with online banking. Online banking is also known as web banking or Internet banking. + An online banking account allows a user to conduct financial dealings through the Intemet. * To register, a customer needs a device, an internet connection and a debit card, *You need not visit a bank to do the basic banking transactions. To use the service, you must first register and create a password, Mobile Bankingaie, as Bae ee = Mobile banking is a service provided by a bank which involves the act of making financial activities on mobile devices such as smartphones or tablets. * It helps to use bank service anywhere and at any time, depending on the availability of an internet or data connection to the mobile device. * Mobile banking uses software, usually called an app, provided by the bank. * Mobile banking involves security concerns. Credit Facility Our bank provides various other facilities too, such as credit facility, like loans, credit card, etc. However, this facility is not for children. But it will help you when you grow big. Vidya, let me tell you more about it. Responsible borrowing may include borrowing only the amount of money someone needs and will be able to repay in a given time period. Money can be borrowed for various reasons. Borrowing may not always be the best option. There may be other ways to achieve your goals without going into debt. For example, you can meet your goals by saving, instead of borrowing. Borrowing money or taking a loan to purchase something that is not very necessary or urgent, is not a good idea. Because we may still be paying for the loan even after we have used the item in such cases. We must know the difference between good borrowing and bad borrowing PODAR WORLD SCHOOL, 10 ®“Save your money. You're going to need twice as much in your old age as you think.” - Michael Caine BE WISE! Borrow only as much as your ability to repay. Good Borrowing Ramesh is a milkman who delivers mik to the nearby village on his bicycle each day. Now, he decides to deliver the milk to the city to eam more money. In order to avoid the inconvenience, he wants to buy a scooter. He does not have enough money to buy a scooter and therefore he needs to borrow some money. This is considered good borrowing as the scooter will help him increase his business and eam more money. With the increased income he can easily pay off the loon, Bad Borrowing Neha wants to buy a handbag which costs 1, 00,000 just to show her friends. She does not have enough money to buy the bag and therefore she needs to borrow some money. Her income is very less io pay off the loan. This is considered as bad borrowing.Credit Cards Acredit card allows you to borrow funds to make payments for goods and services = purchased. _ The cardholder needs to payback the borrowed amount within the stipulated time. + The bank records _ every purchase and you need to pay the money back before a particular date. + Bank generates creait card bill every month. + You have to pay interest if you fail to pay the credit card bill. Loan A loan is a sum of money borrowed from a financial institution or any person which needs to be paid back with an extra amount of money known as interest. The actual sum borrowed is known as the principal amount. Let us assume that Mrs. Laxmi borrows €20,000 from a bank. This is the principal amount. When Mrs. Laxmi decides to repay the loan after one year, it is found that she has to give the bank 222,000. Why do you think Mrs. Laxmi needs to pay more than what she borrowed? This is because she had to repay the principal amount along with the interest. In this case, Mrs. Laxmi had to pay 22000 exira money to the bank as interest. Let us take another example. Suraj, a farmer wants to buy a cow for 55,000. However, Suraj has only £5000 with him. So he decides to borrow the rest of the amount from the bank. He goes to a bank and the bank agrees to lend him %50, 000 with a condition that Suraj will have to repay the principal amount along with the interest @10% p.a. after one year. Why is this so? What is the interest amount? cs aie Ai 12 FoDAR WORLD SCHOOLEUR Veale staligs eles iet Principal Amount 50,000 + Interest amount @10% 5,000 Total money that he has to repay 55,000 In this example, the interest amount of €5,000 which is the income for the bank. Banks and other financial institutions charge interest on the money lent to People. This interest is the income to the lenders. If we fail to repay the loan, the bank or financial institutions have the authority to take actions against the borrower. Meera, wants to buy a Scooter for 280,000. She applies for a loan with the bank, Her loan is approved and the bank agrees to lend her the money on the condition that she will have to repay the principal amount along LET'S DEAL __ With the interest @10% p.a. Calculate, the interest and the total amount to be repaid to the bank. Ans: te sae py 12,imancial Literacy & Entreprene ip Do you know how a bank manages to lend money to people? Vidya, I'm sure that you now have detailed understanding about the banking system. Let us go home and bring the required documents tomorrow to open a new: bank account. Sam We ‘Ss Global Exchange expenses to a great extent which includes college fees, examination fees and library fees. It also covers the cost of books, technology/instruments expenses. The travel and accommodation expenses are also taken care of. PODAR WORLD SCHOOL We all know that banks accept deposits from people who have savings. They lend some money to the people who need them for various purposes such as setting up a business, to buy a house or to pay for education. Thank you uncle for helping me know about the banking system so well. | wil surely come tomorrow to open my account in your bank. Corp Vidya Scheme - Corporation Bank of Indio: The Corp Vidya Scheme is rolled out by the Corporation Bank of India which offers a concession on interest rates on education loans to female students. This scheme can also be availed by aspirants interested in studying abroad. The loan covers education-related uniforms, education-related and other course-relatedCase Study Questions: Q.1 What do you mean by interest on the loan? Ans: Q.2 Do you think it is right to take the loan? Explain. Ans: 2 bank: it is @ financial institution that manages deposits, withdrawals and other similarservices debit card: It is a payment card that deducts money directly from a consumer's bank account whenitis used, PIGGY BANK credit card: It allows you to borrow funds to make paymenis for goods andservices taken internet banking: It is a type of banking in which all transactions are carried out electronically over the internet sae 7 15 aaamobile banking: it is a service provided by a bank which involves the act of making financial activities on a mobile device such as a smartphone or a tablet loan: it is a sum of money borrowed from a financial institution or any person nd it is paid back with an extra amount of money known as interest Pass book: it is aq book wherein a bank records the regular transactions of a customer 2 ‘Meaning [+ Procedure to Open a Bank yas ere Account for Minors >| Passbook Cheque Book Banking: Vidyo's | SL eel eee Money in| == |———»|_ATM: Automatic Teller Machine Good Hands ap FIN ~0 - PEDIA *Credit Cards *Loan ee Mobile Banking [Seen uit aaa Intemet Banking Credit Facility *Good Borrowing, Bad Borrowing https://kids.britannica.com/kids/article/bank-and- banking/352823 https://www.themint.org/kids/how-banks-work.html https://www.easypeasyfinance.com/what-is-a-bank-for- kids-students/ https://www.moneyprodigy.com/banking-activities-for- kids/ https://statrys.com/blog/bank-types https://roi.org.in/scripts/NotificationUser.aspx¢Mode=08ld =3691 https://www.mahindrafinance.com/investments/fixed- depositPLEDGE THE BULL 1 1 { 1 { ' ' : ' ' 1 ' ' t i Hl 1 n E le oq ald jesceencossecceny Zz Ld a PODAR WORLD SCHOOL,pele Kee Sac elesace a e/a FIN-O- METER 0-4 wag, o @.1 Choose the correct answer from the given options. (siya of ue isc financial institution that manages deposits, withdrawals ‘and other similar services. {) school (i) hotel (ii) bank (iv) shop. b. refers to the act of transferring or saving money in a bank for safekeeping. (i) Deposit (i) Withdrawal (ii) Borrowing {iv} Transaction Clg BY is a book wherein a bank records the regular transactions of a customer. {) bank book (i) pass book (ii) cheque book (iv) handbook d. A z is a negotiable document that tells a bank to pay a certain amount in the depositor’s account. (i) document (i) amount (ii) recoret (iv) cheque PODAR WORLD SCHOOL,| 5 mancial Literacy & Entrepreneurs’ 6.4 FAI __is @ payment card that deducts money directly from a consumer's bank account when it is used. (i) pan card (i) credit card {ii) debit card (iv) aadhar card @.2 State whether the following sentences are true or false. a. Wecan only save money in the bank. b. The act of withdrawing money from a bank is referred to as a deposit. ca A passbook is a booklet that contains removable blank cheques, provided by a bank. d. Anyone with a debit card gets access to cash, 24 hours * 7 days a week through the ATMs. e. Internet banking is a type of banking in which all transactions are carried out electronically over the HULL intemet. 1-0- € MY, = - = @.3 Answer the following questions, 4 @. What is mobile banking? Ans. PODAR WORLD SCHOOL,lancial Literacy & Entrepreneurs b. What is responsible borrowing? Ans. c. Whatis a credit card? Ans. d. Whats the meaning of a loan? e. How does a bank manage to lend money to the people? Ans. PODAR WORLD SCHOOL@.4 Answer the following questions in brief, a. Ans. Discuss internet banking in detail, b, Ans. Explain what is an ATM and write its full formeancial Literacy & Entrepreneurs! c. Give details of a debit card. Ans. d. Discuss the process of opening a new minor account in a bank. wy, = PODAR WORLD SCHOOL,Q5 Let us assume, that you start saving 2100 per month when you are 12 years old. Calculate how much principle amount you will have in your bank account ‘on your 18th birthday. Ans. eae See 6 Compare the different types of loans, such as home loans, car loans, etc. se ee < PODAR WORLD SCHOOL 23Naresh Learns About re) Financial Implications ©) - x v vy¥ vy What do you want to do with your (Sr first salary eamed? < PODAR WORLD SCHOOL Enos THE GOAL Meaning of income Types of Income Meaning and Difference Between Savings and Investments Meaning of Assets Features of Assets Meaning of Expense Types of Expenses Liabilities Are Liabilities Good or Bad? =e STOCK UP THE IDEA,Naresh was a sincere and hard-working boy. He used to work in the nearby supermart opposite his college. The owner of the supermart, Mrs Shalini Sharma was a wise and simple lady in her late 70s. Every day she saw Naresh work hard and after his duly was over, he would enjoy partying with his friends and spending money lavishly. One day Naresh looked a bit worried. Mrs Shalini asked him about the same, He said that he is falling short of funds to pay off his college fees. Mrs Shalini offered fo give him money to pay his college fees. Naresh was embarrassed to take money from Mrs Shalini, however, he accepted the help. He had realized his mistake of spending without thinking. The next day Mrs Shalini started a conversation with Naresh. Meaning of Income When | see you, | remember my college days. | came from a very conservative family setup. My friend Jessica and | used to ear and lear just like you. We used to work in a saree showroom as'sales girls to eam some money i.e. income. Income is the amount of money received during a-given period of time by a person, household, or another economic. unit in return for services provided or goods sold. income’ is very important in economics, because all the types of income eamed by individuals are spent on purchasing the goods and services required for daily consumplion. onPimancial Literacy & Entrepreneurs! Types of Income Income can be eared in various forms, 1. Earned Income itis the salary or typical monthly income earned from a primary job. Eared income could be based on an hourly rate alongside bonuses, commissions, and more. T i 2. Business Income Income eamed by setting up a business is known as income from the business. Income eamed through a business is known as profit. 3. Inierest Income Income received from banks for saving Money is known as an interest. The interest gmount depends on the actual money invested. The interest rate varies from time to time. 4, Dividend Income The shares of a company yield income in form of a dividend. Dividends are more commonly known as © Part of the profit on the shares owned,5. Rental Income Income eamed from letting out a property, such os a house, shop, office premise, etc. is known as income from rent. 6. Capital Gains S ELL y BUY Capital Gains income is acquired through the sale of assets such as artwork, stocks, vehicles, property, etc. 7. Royalties or Licensing Income Are you a creative individual who produces music or photography content? Licensing your work for specified public usage can earn you royalties as an extra income. "Never depend on a single income. Make investment to create a second source” - Warren BuffetMeaning of Savings and Investments College days were such fun. However, my daddy was a very strict man and he ensured that I saved all the money earned. He always explained that saving is the portion of income set aside for future use and not spent immediately. | used to get so angry with him for not letting me spend money as per my wishes. But the money which | saved from an early age and the habit of saving inculcated by my father in my growing age helped me to lead a stable life without any financial burden. | could provide good education to my children and now | lead a satisfactory tension-free retired life, The money which | saved and invested throughout my life helped me to own a few assets such as this supermarket, a house and a car too. Thus investment helps to multiply the money saved by buying various assets such as gold, stocks, real estates, etc. An investments an asset or item acquired with the goal of generating income or appreciationin short, investment leads to wealth generation. iis aude < i PODAR WORLD SCHOOL. 23Savings 2 Investments Savings are usually for a short period Investments usually are made for long, of fime. term period of time. Savings involves minimal risk. — Investments involves more isk. income eamed on savings isles. | Income eamed by investing is more. | Money kept as savings does not Money which is invested has the | generate adequate income. potential to grow over time. Meaning of Asset An asset is something that is owned by a person,a company or organization, such ‘as money. property orland. It is something that can help in income generation. Features of Assets The main features of an asset are as follows: 1. Ownership Assets signify ownership or control by the business/individual for purposes of production/utiisation. Assets can be sold in exchange for cash and cash equivalents. 2. Economic Value Every osset has an economic value Gnd this asset can also be exchanged or sold in the market. 293. Resource Assets are a resource that can generate revenue for the business. For example, machinery can enhance the production capacity of the firm resulting in economic benefits. 4. Maintenance cost Most assets have a maintenance or repair cost. Regular maintenance helps the asset fo run smoothly and not hamper the business operations. 5. Depreciation Depreciation is a reduction in the value of an asset due to factors like wear and tear or obsolescence. It is an ongoing process that terminates only at the end of an asset's useful life. 6. Estimated useful life An asset has an approximate life span during which it can function efficiently. For items ike machinery, which are essential for the production of goods, the estimated life is either known to the vendor (who sells the asset to the company) or a qualified professional (who calculates the life span based on the asset's present condition and estimated usage). 7. Scrap value An asset starts to depreciate over some time due to wear and tear or obsolescence. After a few years, the asset becomes non-functional or obsolete and has no use for the business. But it still has some salvage value which can be realised by selling it fo a scrap dealer. This value is known as the scrap value of an assel. The scrap value generated by selling this asset is an income. he, ative Sas PODAR WORLD SCHOOL.Research and write a few examples of various assets you know. Ans, __ LET'S DEAL Jessica and | had @ great time in college. She was a diva with fancy clothes, shoes and glares surrounded By many friends. She used to offen go out for dinners ond parties with fends. | used to get angry with daddy for not allowing me to spend money on good dresses and shoes. He used to always say that we must ‘always be calculative and thoughtful about our expenses. Expenses refer to the money you need fo pay for goods and services that you buy or use. ie He Foes sco,Types of Expenses Expenses can also be categorized into fixed expenses, and Variable expenses: ‘ 1. Fixed expenses These are the necessary expenses that remain the same each month {including rent, car payment, and insurance). You generally need to make big changes in your life to meet these expenses. 2. Variable expenses These are the necessary expenses that vary each month, including your utilities and weekly grocery bills. You can lower these expenses by changing your habits. | used to half-heartedly follow my daddy's instructions. But his words proved true. My friend Jessica was so habituated to spending money thoughtlessly, that one day she became broke with no money left for her medical expenses. She had several liabilities which she was finding difficult to repay. Liabilities Liabilities are your debts or obligations which you need fo fulfill in the future. This is the money you need fo repay. Liabilities include loans from banks or any financial institution or money borrowed from friends and relatives. Excessive and unthoughtful spending can lead to increased liability and financial instability. PODAR WORLD SCHOOLAns. . LET'S DEAL Are liabilities always a bad thing? A 2a 1 Are all ies bad? In our personal lives, our first house was probably Purchased with a down payment and bank loan. That loan is @ big liability, but it allowed us to upgrade our living space and provides us shelter. So some liabilities are good. Too many unnecessary and unthoughiful liabilities could cause financial hardships just like that for Jessica. Naresh finally leamed that thoughtful financial management will result in favorable financial conditions for the future.Itmight come as a surprise. But Warren Buffett's biggest investing mistake was to purchase Berkshire Hathaway in 1962. At-that time, Berkshire Hathaway was a failing 7 —_ textile business. His favorable financial evaluation got a GLOBALEXCHANGE YOUNG Warren Buffett interested in the compony. And he started buying the stocks. Then in 1964, the owner of the firm, Seabury Stanton, offered io buy out Buffett's shares at 11 dollars and 50 cents. Buffett agreed to if, but when the offer letter came in, the offer price was down fo,11 dollars and 32 cents, As a result, he purchased a controlling stake in Berkshire Hathaway and fired Stanton from the company. Buffett carried this burden of a failing textile business for 20 additional years. By his calculations, Buffett's purchase of Berkshire Hathaway was a mislake worth USD that being emotional does not help in investing and 200 billion. The lesson here generating income. Case Study Question Q.1 Investments involve tisk, so it is better to avoid investing. Share your opinion, Ans.supermar: a self-service retail market selling especially foods and household things. conservative: a person who is averse to change and holds traditional values. PIGGY BANK —-°™barrassed: feeling ashamed or shy. Primary job: a job that produces goods and/or services for customers. nal Meaning of Income Types of Income Meaning and Difference Between Savings and Investments | sy erll penne ES J Naresh Learns —— About Financial }————_» Meaning of Assets Implications Le pia esis a LU __,} Features of Assets z| ++ Types of Expenses [++ Liabilities * https://www.econli.org/liorary/Ene/Saving.html a * https://learn.financestrategists.com/finance-terms/assets/ FIN-0-PEDIA 6 _hitps://economictimes indiatimes.com/defaultinterstitial.cms vi aude er 35 te ie (3)PLEDGE THE BULLFill in the blank with the correct answer from the given options. Every asset has an value. i, economic I. profit ili, shares iv. cultural income could be based on an hourly rate alongside bonuses, commissions and more. i, Earned i, Rental iii, Dividend iv. Interest means a part of the profit on the shares owned. Dividend . Shares i. Interest iv. Rental ——_____ maintenance helps the asset to run smoothly and not hamper the business operations. i, Frequently Regularly i. Weekly iv. Monthlya3 Ans. = PODAR WORLD SCHOOL. ia are the necessary expenses thal vary each month, including your utilities and weekly grocery bills, Variable expenses ji. Fixed expenses iii, Monthly expenses iv. Daily expenses State whether the following sentences are true or false. Fixed expenses are the necessary expenses that remain the same each month. The scrap value generated by selling any asset is not ‘an income. Assets are a resource that can generate revenue for the business. Rental Income is acquired through the sale of assets ae such as artwork, stocks, vehicles, property, etc. Uability is always bad, Answer the following questions. What is income?Ans. Ans. Ans. Explain income eamed from the dividend in detail. What is the meaning of savings? Assets have economic value. Discuss. What is depreciation?ELEN Sy ecto St ahigciel goa) 1-0- n> M, o, 2 p a4 Answer the following questions in brief. Distinguish between savings and investments. Investments b. What are assets? Explain with example.d. What are expenses? Explain with relevant example. Ans. | | | | | | | e. Explain any two features of assets. Ans. PODAR WORLD SCHOOL@5a_ Whichis the first asset that you would want au ‘ Bs ie to buy on your own. i ae = 1 ou o—o Ans. — @5b Atwhat age will you want fo own it? Ans. @5.c Whatis the current price of it? Ans. @Q5.d How do you plan to arrange for the money to buy it? Ans. ——+ 0 +0 sesgeee ate awe = b PODAR WORLD SCHOOL, 42Vidya's ® Millionaire Mindset Lue THE GOAL ; G > Stock market » Mutual funds Discuss various types of investments done by the people. = I PODAR WORLD SCHOOL 3 ®My daddy works in the stock market, My mother is a lawyer. Vidya, what is a stock market? My father is on architect. Vidyo looked blank and was speechless. She was determined to ask her father about the stock market. It was 7 p.m, when the thirteen-year-old Vidya stormed into her apartment. Vidya's mother was cooking in the kitchen, Daddy is at the gym. He should be back soon. Do you have some work with daddy? ste, ave = eS PoDAR WORLD SCHOOL,a fancial Literacy & Entrepreneursk Mummy, | have asked daddy several times about stock market. When | ask him about the stock market he tells me that it is hard to explain, and so he will tell me when, | grow up, but I'am thirteen yeors old now! What is a stock market, mummy? Why is it hard to explain? Hmm, I'l try explaining, but I need to buy some groceries fist. Let's go to the D'mart nearby? Soon they left for the D'Mart. Vidya was happy to. accompany her mother to the D'Mart as it offers a wide variety of products to meet all the household needs of a family including toys and games, stationery, footwear, clothes and alot more... Ilike going to the D'Mart. Mummy, | wonder who got this amazing idea to start a D'Mart! Mr. Radhakishan Damani was the founder of D'mart. D'mart started its first store in 2002 in Powai, Mumbai, D'mart today has a well-established presence in several locations across Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karataka, Telangana, Chhattisgarh, Dethi, Tamil Nadu, Punjab and Rajasthan. There are 246 D'mart stores as on September 30, 2021. = PODAR WORLD SCHOOL aSincial Literacy & Entrepreneurship I'm sure Mr. Damani must be very rich to open so many stores across India. Banks have a lot of money. Maybe he must have borrowed the money from the bank. To open stores across India requires a lot of money. Borrowing so much money from the bank will include repaying a huge amount with interest. It won't be easy. Almost all the money earned will go in repaying the loan. But mummy, if not the bank, then how did Mr. Damani manage to get so much money to open several stores in India? Stock Market Common people who have the excess money and who liked the idea of D'Mart, invested their money to form a company. These investors believed that the business will do well and will eam huge profits. People who invested their money in their business by Purchasing shares of the company are known as shareholders of the company. A share is a single unit of ownership in a company. Even if a person buys a single share of the company, s/he becomes a partial ‘owner of the company. PODAR WORLD SCHOOLBut what will the shareholders get in retum? The higher the profits of the company, the higher the amount of money the shareholders will eam in the form Of dividend. If the company does not make any profit, then the investors will not get any money in return. Its a "isk that the investors take collectively. @ Ss, occhotdors When you buy a share you own a piece of the company. will get higher returns on money, invested.I'm sure Mr. Damani must be very rich to open so many stores across Indi Banks have a lol of money. Maybe he must have borrowed the money from the bank, To open stores across India tequires @ lot of money. Borrowing so much money from the bank wil include repaying a huge amount with interest. It won't be easy. Almost all the money eamed will go in repaying the loon. But mummy, if not the bank, then how did Mr. Damani manage to get so much money to open several sores in indiag Common people who have the excess money and who liked the idea of D'Mart, invested their money fo form a company. These investors believed that the business wil I! do well and will eam huge profits. People who invested their money in their business by Purchasing shares of the company are known as shareholders of the company. A share is a single unit of ownership in a company. Even if a person buys a single share of the company, s/he becomes a portial owner of the company, < PODAR WORLD SCHOOL,When you buy a share you own a piece of the company. But what will the shareholders get in retum?, The higher the profits of the company, the higher the ‘amount of money the shareholders will earn in the form of dividend. if the company does not make any profit, then the investors will not get any money in return. Itis a tisk that the investors take collectively. @ sharchotders will get Os, 206 price higher will go high noe om invested. doing well and earns profit.SHAREHOLDERS — THE PART OWNERS OF THE COMPANY (INVESTORS) DMart AVENUE SUPERMARTS LIMITED ncial Literacy & Entrepreneurship oa moe gee OoOh! This means that the stock market sa common place where the investors invest their money in a particular company. When | become big, | will certainly invest money in the stock market and | further will osk investors fo invest in my company through stock market. Oh! Dear, all company's cannot take money (capital) from the stock market. You have to first list/ register your company in the stock market. Only then the investors will feel safe to invest in the company. D'mart is also listed in the stock exchange under the name Avenue Supermarts Limited. In India we have the National Stock Exchange [NSE] and Bombay Stock Exchange (BSE). Their functioning is govemed by the Security Exchange Board of India (SEBI). SEBI is a statutory regulatory body established on the 12th of April, 1992. It monitors and regulates the Indian Stock Exchange while ensuring to protect the interests of the investors, formulating regulations and guidelines. Yeah! The stock market seems cool. | will want to invest in the stock market when | grow big.Beware, sometimes you may incur losses too, due fo fall in the price of the shares. Mother, but how will | know which share | should invest in to eam more profits and avoid losses? Tue, investing in the stock market requires the study of companies whose shares you are going to buy. Everyone may not have enough time to study the market conditions and performance of the company on a regular basis. Thus, now a days, People prefer investing money in mutual funds. Investers Returns or Mutual fund - income Fund Manager Stock Exchange PODAR WORLD SCHOOL,‘Oh! Mutual funds. I have seen the advertisement for the mutual funds on our television. But mummy, what ore mutual funds and how are they related to the market? A mutual fund is basically a kind of fund, where people put together their money to let the mutual fund managers invest in the stock exchange. Mummy, the stock market is interesting. | want to invest some money saved by me in the stock market. Can you and daddy help me with it?” Her mother nodded smilingly. Find out and write the names of fhe mutual funds specially designed for children. LET'SDEAL = Ans.Coal India: Public Sector Unit entity is the biggest coal- producing company globally. Other products of the Ze: company include non-cooking coal as well as GLOBALECHANGE — CO°kiNg coal of different quallies for varied purposes. The company primarily caters to thermal power- producing entities, steel and cement producers as well as other industrial organisations. The mining and minerals PSU on November 23, 2021, announced @ dividend for year 2022 of %9 per share. Since 2011, the company has declared dividends many times. ata ghear faries @ Coal India Limited TRE WOR at ID V.80/) A Govenment of nis Underiating %, = 9 ERT BY A Manaraina Company Case Study Questions: QI. Find out what is a Public Séctor Unit. Ans. ae PODAR WORLD SCHOOLQ2, Research and state the various types of business undertaken by Coal India. stock market: a stock market is where people buy and sell shares. dividend: a dividend is the distribution of profits to the PIGGY BANK Shareholders. Vidya’s Millionaire Mindset : Stock Market Mutual Fund : “The stock market is a device for transferring money from ihe impatient to the patient.” -Warren Buffet aly @ hittps://www.sebi.gov.in/ @ https://www.nseindia.com/ FIN 0 - PEDIA © hittps://www.bseindia.com/ 38% ST i aciieellemcaheniiine’: 53= =) ® iq 2 fol ) Na © 4) PLEDGE THE BULL 5 g ql g 3 g g ee shite EaChoose the correct answer from the given options. The full form of SEBI is {i) Secular Exchange Board of Ireland (i) Secular Elaborate Board of India (ii) Secular Exchange Board of India (iv) Security Exchange Board of India Even if a person buys a single share of the company, s/he becomes the owner of the company. (i) whole (i) partial (ii) smart (iv) sincere The higher the profits of the company, the higher the amount of money the shareholders will eam in the form of (i) gift (i) interest (ii) voucher {iv) dividend People who invested their money in their business by purchasing shares of the company are known as of the company. (i) shareholders (i) purchasers (ii) lenders (iv) sellersfe. _ SEBIis a statutory regulatory body established on the {) 12th of April, 1993 (i) 12th of April, 1992 (ii) 12th of August, 1992 (iv) 13th of April, 1992 @2 State whether the following sentences are true or false. a. You always gain profit when you buy shares. b. All the listed companies cannot take money (capital) from the stock market. c. Even if a person buys a single share of the company, (ot) s/he becomes a full owner of the company. d. Investing in the stock market does not require the (Gai) study of companies to buy shares. e. A mutual fund is a kind of fund, where people put together their money to let the mutual fund managers invest in the stock exchange. 5-0-4, & a ye = o) @.3 Answer the following questions. a, Whatis a share? Ans. ates 56 PODAR WORLD SCHOOL,inancial Literacy & Entrepreneurshipy b. — Whatis a dividend? Ans. es ¢. Research and write the names of any two companies listed on the stock exchange. Ans. _ d. Give the names of two stock exchanges in india Ans. €. — Whatis a mutual fund?——————————————ESES_:tlrllts— SBM a = ~ @.4 Answer the following questions in brief. @. How does alisted company raise money for its business? Explain the process Ans. a b. ‘Shareholders will get dividend only when the company makes profit.” Explain. Ans. ¢. Howare mutual funds related to stock exchange? sue r L PODAR WORLD SCHOOL, 58e. What is the role of SEBI?QS Research and write about various stock exchanges in the world, Ans. ee PODAR WORLD SCHOOLancial Literacy & Entrepreneurs @Q7__ Research and write about the IRCTC shares and its = price during: ¢ 1) aaa =IRCTC BRE EAN ENA /unne PANDEMIC _ AETER PANDEMIG 20 2 eee ate wits RUE rc 61 PODAR WORLD SCHOOL.@ Virtual is the New Normal TOWARDS THE GOAL @ Meaning of Digital Payments Digital Payment Methods vv Importance and Benefits of Online Payments y Challenges of Online Payments pose What are expenses? How are the payments done? STOCK UP THE IDEAIt was 5:00 p.m. Hansel a seventh grade student had just returned home from school. As he entered the house he saw his grandfather discussing something serious with his neighbouring friend whe had tears in his eyes. After that day, his grancfather retrained to use a smartphone and preferred using a landline to make calls. He avoided using the mobile phone. Hansel found it very strange as he was aware that his grandfather enjoyed playing Candy Crush on the smartphone. One day the grandfather was late fo return from the markel. Everyone was worried back home. They tied calling him but in vain, as the grondfather had left his phone at home. When the grandfather returned, Hansel gathered all the courage and asked his grandfather the reason for avoiding the usage of his mobile phone. Grandfather first tied to avoid answering the question, but then he hesitatingly said. ‘A smartphone is nothing but a hidden robber. It robbed my friend of all his retirement savings. | will never use this phone ever again. | will also suggest vou to do the same. Oh! Grandpa, | agree that cybercrimes are rising these days. However, awareness is the key to staying protected. Our teacher said that awareness and protective measures are the keys to conduct digital transactions safely. ¥. athe Jf Pooarworto scoot 83Meaning of Digital Payments Hansel hurriedly got his school book to. impart knowledge related to the digital Payment ecosystem, its fools, benefits and Processes to encourage his grandfather to use digital payments such as using €-wallets, UPI, USSD, Aadhaar-enabled payment systems and cards fearlessly. Digital payments are those payments in which the payer and the payee both use electronic modes to send and receive the money. Digital Payment Methods 1. Mobile Banking ‘Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct different types of financial transactions remotely, using a mobile device such as a mobile phone or tablet. 2. Mobile Wallet A mobile wallet is a way to cary cash in a digital format. An individual's account is required to be linked to the digital wallet to load money into it. = PODAR WORLD SCHOOLaie Saitek aes i citteahibiah en tees Most banks have their e-wallets and some private companies e.g, Paytm, Freecharge, Mobikwik, Oxigen, Airtel Money, etc. also provide this service, 3. Point of Sale A point of sale (POS) which is also known as the point of Purchase (POP) is the spot where sales transactions between seller and buyer are finalised. It can be in a Physical store, where POS terminals and systems are used fo process card payments, or a virtual sales point such as a mobile device, 4. Micro ATMs Micro ATM is a mini version of ATM. This device is used by the businesses such as shopkeepers, etc. to conduct instant transactions, It connects the banking network via GPRS to perform banking transactions. This machine contains a card swipe facility. 5. Aadhaar Enabled Payment System (AEPS) Ely | on AEPS is a bank-led model which allows online financial transactions «at POS (Point of Sale / Micro ATM) through businesses authentication, $. Unstructured Supplementary Service Data (USSD) The innovative payment service allows mobile banking transactions using the basic feature of a mobile phone. |t allows users without a smartphone or data/intemet connection to use mobile banking through the *99# code. en using the Aadhaar USSD (offline) Mobile BankingMerchant payments into one place. In this system, transactions can be done through any smart phone using VPA (Virtual Payment Address) facility 24 x 7, One needs to download UPI enabled bank app and login using the bank details. 8. BHIM Bharat interface for Money (BHIM) is an app that lets you make simple, easy and quick payment transactions. using Unified Payments Interface (UPI). You can make instant bank-to-bank payments and collect money using mobile number or Virlual Payment Address (UPI 1D). Online Payment - Importance and Benefits The major advancements in electronic payments have Created countless opportunities for businesses to grow faster. Electronic payments have constantly undergone advancements making them a seamless, fast and hassle-free way of making payments. You no longer have to go to the bank to deposit your money. Here are a few advantages of the online payment system. 1. Instant Payment Online payments are faster than traditional payment methods such as cash or cheque. There is no time or location constraint when it comes to online Payment. You can make the payment from anywhere in the world at any time. able SaeS PODAR WORLD SCHOOL2. Higher Security There are multiple measures to make online payments more secure. Customers no longer have to enter their card details every time they purchase anything. They can either save their card details or use a one-time password to complete the transaction. 3. Convenience Online payments can help businesses provide their customers with a convenient payment experience. Customers have the option to purchase goods on credit and can pay later. The businesses will not have to send constant customer reminders to get the payment. You can automatically collect the money after a certain period of time. 4, Saves Processing Costs Businesses have to pariner with a card processor to enable payment services to customers. The processor provides you with the payment gateway for processing in exchange for a high fixed cost. On the other hand, with online payment, you do not need to avail services of a processor. You just need to pay a fixed subscription to the online payment service provider. 5. Contact- Free Payment Contact-free payments mean quicker transactions and shorter queues at shops. In this system, the payee needs io hold his/her phone near the terminal to capture the QR code and the payment will get processed automatically. 6. Reaching World Wide Online payments have made money transactions very convenient globally. Through this mode of payment, businesses have expanded as they are able to reach customers globally. PODAR WORLD SCHOOLChallenges of Online Paymenis There are some of the challenges that you need to take into consideration while making online payments. 1. Technical problems Unforeseen technical issues can also generate several hours of downtime, which may cause some frustration among shoppers who aren't able to pay directly. These can, however, be moderated through the right communication and support. 2. Online frauds Abig disadvantage of online transactions is the merchants and customers exposure to different attacks. From ID theft, to database exploits and phishing attacks, criminals are becoming more and more versatile. The govemment has mandated a zero-charge framework for UPI transactions with effect from January 1, 2020. This means that charges in UPI are nil for users. “UPI is a digital public server that Provides immense convenience to the public and 7S GLOBAL EXCHANGE Productivity gains for the economy. There is no consideration in the government to levy any charges for UPI services. The concerns of the service Providers for cost recovery have to be met through other means," the Finance Ministry said in a tweet. akee Shen PODAR WORLD SCHOOLremote transactions: the transaction made using an internet or a device used for distance communication macro level: a level that is large in scale merchant payments: accept and process electronic Payment card transactions. PIGGY BANK unforeseen: not anticipated or predicted Meaning of Digital payments Digital Payment Methods Challenges of Online Payment Online Payment Importance and benefits © httos://www.bhimupi.org.in/ *https://www.npci.org.in/what-we-do/upi/product-overview * https://www.invoicera.com/blog/top-10-business- jew Normal Virtual is # FS oc EEA. advantages-of-accepting-payments-online/ ale oe 70 PODAR WORLD SCHOOLrd cc o io @ Qa J) — g [= lu Cs] Pa] (8) © © a ney ot = ic (3) Se PLEDGE THE BULL enema neuen: Ta: 23) tana ss: 0-m SS . oY 7p @.1__ Fillin the blank with the correct answer from the given options. ge Is a way to cany cash in a digital format. i. Internet banking ii, Mobile banking ii, Mobile wallet iv. Internet wallet be =A, is the place where payment of sales and purchase is executed. i. point of sale unified Payments Interface iii, intemet iv. bank Gi are faster than traditional payment methods such os cash or cheque. i. Online payments ii. Speed post ii, Direct paymet W. Higher Security d. ___payments mean quicker transactions and shorter queves at shops. i. Contactfree i. Cash iil, Barter iv. Offline ¥ ate * Tre 72) PODAR WORLD SCHOOLaz The full form of BHIM is Bharat Intervene for Money ji, Bright Intervene for Money iii. Bharat Interface for Money iv. Batch Interface for Money ‘State whether the following sentences are true or false. Mobile banking allows its customers to conduct financial transactions remotely using a mobile device. USSD-based mobile banking does not require mobile internet data. There is no time or location constraint for online (ces) Payment. The full form of UPI is Ulimate Payments Interface. POS is also known as the Point of Purchase (POP). -O., é My, o = 2 Answer the following questions. Write the meaning of digital payments?ic: What is Micro ATMs? Ans. d. Online payments are faster than traditional payments, Discuss. Ans. Mec z 74 PODAR WORLD SCHOOL y % .Ans. a4 Ans. Ans. What are the technical problems of online payments? Answer the following questions in brief. Explain Unified Payments Interface (UPI). What is BHIM? 35ely re GR ht eo ee atelier rc} Discuss AEPS in detail Ans. d. Online helps businesses to reach global worldwide. Discuss. Ans. e. Online fraud is one of the biggest disadvantage of online transactions. Discuss. Ans. PODAR WORLD SCHOOL zs,Q5A Ans. Qs5B Ans, Do you prefer to do online payment or offline? Why? Research and write about the pointers to be considered while making online payments. + + 0-6 PODAR WORLD SCHOOL ueNotes PODAR WORLD SCHOOL 78ve OS a ae WORLD SCHOOL