Worksheet Ch 10: Consumer Mathematics - Financial Management

Section A • Bahagian A [12 Marks]

Question 1 [4 Marks]

Financial planning requires distinguishing between different types of income and expenses, as well as applying the SMART concept.

(a) Classify each of the following financial items as Fixed Expense, Variable Expense, Active Income, or Passive Income:
    (i) Monthly housing loan installment of RM 1,400.
    (ii) Rental received from a tenanted shophouse of RM 2,000.
    (iii) Monthly electricity and water utility bills.
[3 marks]
(b) State what the letter M and T represent in the SMART financial goal concept. [1 mark]

Question 2 [4 Marks]

Encik Farhan earns a monthly salary of RM 4,500 and receives RM 350 monthly from stock dividends. His monthly fixed expenses total RM 2,100, while his variable expenses total RM 1,850.

(a) Calculate Encik Farhan's monthly net cash flow and state whether he has a cash flow surplus or deficit. [2 marks]
(b) Calculate the minimum emergency fund that Encik Farhan should keep, based on the standard recommendation of 3 to 6 months of total monthly expenses. State the minimum amount (3 months). [2 marks]

Question 3 [4 Marks]

Hafiz wants to buy a high-performance laptop priced at RM 4,800 in 8 months' time for his graphic design studies. He currently saves RM 300 per month from his allowance and part-time job.

(a) Calculate the required monthly savings Hafiz must set aside to achieve his goal. [2 marks]
(b) Is his current savings amount sufficient? If not, calculate the additional monthly amount he must earn or cut from expenses. [2 marks]

Section B • Bahagian B [18 Marks]

Question 4 (HOTS / KBAT Financial Case Study) [10 Marks]

Puan Nora is a secondary school teacher who also operates a home-bakery business on weekends. The table below shows her estimated monthly financial budget:

Item / Perkara	Amount (RM)
Income / Pendapatan
Monthly Net Salary (Gaji Bersih)	4,200
Home Bakery Net Profit (Pendapatan Sampingan)	800
Fixed Expenses / Perbelanjaan Tetap
Housing loan installment	1,500
Car loan installment	650
Life & medical insurance premium	350
Variable Expenses / Perbelanjaan Tidak Tetap
Food and household groceries	1,100
Utility bills (electricity, water, Wi-Fi)	380
Petrol and toll fares	400
Dining out and entertainment	420

(a) Calculate Puan Nora's total monthly income, total monthly expenses, and net cash flow. State whether her cash flow is positive or negative. [3 marks]
(b) Puan Nora has RM 15,000 kept in a fixed deposit as an emergency fund. Assess whether this amount meets the recommended benchmark of 6 months of total expenses. [2 marks]
(c) Puan Nora intends to purchase a professional commercial convection oven costing RM 6,000 in 10 months to expand her bakery.
(i) Calculate the monthly savings required to purchase the oven in cash within 10 months. [2 marks]
(ii) Based on her current net cash flow, evaluate whether this goal is achievable without modifications. If not, suggest two concrete adjustments to her budget to achieve it. [3 marks]

Marking Scheme & Model Working:

(a) Income, Expenses & Cash Flow:

$$\text{Total Income} = 4200 + 800 = \text{RM } 5000$$

$$\text{Total Fixed Expenses} = 1500 + 650 + 350 = \text{RM } 2500$$

$$\text{Total Variable Expenses} = 1100 + 380 + 400 + 420 = \text{RM } 2300$$

$$\text{Total Expenses} = 2500 + 2300 = \text{RM } 4800$$

$$\text{Net Cash Flow} = 5000 - 4800 = +\text{RM } 200$$

Positive Cash Flow / Surplus (Lebihan aliran tunai positif).

K1 K1 N1

(b) 6 Months Emergency Fund Assessment:

$$\text{Recommended Emergency Fund} = 6 \times 4800 = \text{RM } 28,800$$

Current emergency fund = RM 15,000. Since $\text{RM } 15,000 < \text{RM } 28,800$, her emergency fund is not sufficient (belum mencukupi).

K1 N1

(c)(i) Monthly savings required for oven:

$$\text{Monthly Savings} = \frac{6000}{10} = \mathbf{\text{RM } 600 \text{ per month}}$$

K1 N1

(c)(ii) Evaluation & Recommended Adjustments:

Her current surplus is only RM 200/month, so she faces a monthly shortfall of $600 - 200 = \text{RM } 400$. It is not achievable under current spending.

Realistic adjustments:

Reduce dining out and entertainment expenses by RM 250 (from RM 420 to RM 170).
Trim household grocery expenses by RM 150 (from RM 1,100 to RM 950) or reduce utility bills.
Alternatively, accept 4 extra custom cake orders per month to increase side income by RM 400.

P1 K1 N1

Question 5 (SMART Analysis for Long-Term Goals) [8 Marks]

Encik Tan wishes to purchase a double-storey terrace house priced at RM 420,000 in 5 years' time. He needs to prepare a 10% cash down payment and an additional RM 12,000 for legal fees and stamp duty.

(a) Calculate the total amount of money Encik Tan must accumulate in 5 years. [2 marks]
(b) Calculate the fixed monthly savings required to meet this goal. [2 marks]
(c) Evaluate Encik Tan's financial goal according to the SMART criteria:
    • S (Specific)
    • M (Measurable)
    • A (Attainable) & R (Realistic)
    • T (Time-bound)
[4 marks]