Financial Management and Planning — Chapter Summary

Financial management means planning

Financial management means planning, controlling, and evaluating the use of all types of family income. Its aim is to give the family the greatest sat

Financial planning is the budget

Financial planning is the budget-making stage of financial management. A budget is a plan for future expenditure that helps balance income with needs

Money income is the purchasing power

Money income is the purchasing power in rupees and paisa that goes into the family treasury in a given period. It includes wages, salary, bonus, commi

Real income is the flow

Real income is the flow of commodities and services available for the satisfaction of human wants and needs over a given period. It has three importan

Direct income is a type

Direct income is a type of real income made up of goods and services available without the use of money, such as cooking, laundering, stitching, a kit