What Are Record keeping Methods - Financial Literacy - أول ثانوي

3.3 What Are Record-keeping Methods? Link to digital lesson 回他 Learning Objective Once you have completed this lesson, you should be able to: ⚫ describe the advantages of electronic versus manual record-keeping methods. Key Terms Manual records Spreadsheet software Electronic records www.len.edu.sa Record-keeping Methods Keeping good records will help you prepare a better budget. You can manually keep track of what you are earning, spending, saving, and investing by using pen and paper. Or you may find using an electronic record-keeping program to be more convenient. Manual Records You can keep manual records as logs or journals on paper that list types and amounts of income, savings, and expenses. You can manually compute your variances and make notations about what to change. You will want to keep these journals over time so that you can compare them from year to year. It is important to keep these records in a safe and secure place. This will protect them from fire, liquid, and other forms of damage and even misuse by others. Minual records Information recorded in hard-copy format using pen and paper Do wu keep good records? Why? وزارة التعليم 1021-1445 95

Electrecords soft copy formats of your Financial information stored on your computer Spreadsheet software computer programs that allow you to insert numbers and formulas to compute amounts and then easily change them later as needed However, there are some disadvantages of using manual records: ⚫ They need lots of space and may be difficult to access in the future due to the accumulation of records. ⚫ It is hard to make changes neatly. ⚫ It can be difficult to locate specific items, figures, or data. • Electronic Records Many people prefer to keep electronic records on electronic devices. The advantages of using computerized systems include: • the ease by which information can be updated, stored, and retrieved the speed by which new computations and comparisons can be made privacy, as data can be stored in password-protected files. Microsoft Excel" is an example of an available software package spe- cially designed for financial planning and record-keeping. It can be used for data entry and budget analysis. Spreadsheet software allows you to manipulate data entry and will calculate the results if the required formulas are already entered. You may need to adjust amounts in a budget several times. This can become quite tedious if done by pen and paper. For example, what if your monthly expenses go up by 8%? How will the budget be affected? What if the price of a car you are saving to buy goes up by 10% during the time you are saving for it? How much money will you need for the car? Allowing you to answer "what if" questions easily is one of the strengths of a spreadsheet program. When you change a number in Excel that is part of a calculation, all other amounts affected are updated automatically. Because amounts are calculated using formulas, math errors are eliminated (assuming you initially entered the formulas correctly). Excel also allows you to set up worksheets and link them together. A sample budget created in Excel is shown in Figure 3.3.1. Like man- ual records, electronic records should be protected from unauthorized مرارة التعليم 96 Financial Literacy

Electrecords soft copy formats of your Financial information stored on your computer Spreadsheet software computer programs that allow you to insert numbers and formulas to compute amounts and then easily change them later as needed However, there are some disadvantages of using manual records: ⚫ They need lots of space and may be difficult to access in the future due to the accumulation of records. ⚫ It is hard to make changes neatly. ⚫ It can be difficult to locate specific items, figures, or data. • Electronic Records Many people prefer to keep electronic records on electronic devices. The advantages of using computerized systems include: • the ease by which information can be updated, stored, and retrieved the speed by which new computations and comparisons can be made privacy, as data can be stored in password-protected files. Microsoft Excel" is an example of an available software package spe- cially designed for financial planning and record-keeping. It can be used for data entry and budget analysis. Spreadsheet software allows you to manipulate data entry and will calculate the results if the required formulas are already entered. You may need to adjust amounts in a budget several times. This can become quite tedious if done by pen and paper. For example, what if your monthly expenses go up by 8%? How will the budget be affected? What if the price of a car you are saving to buy goes up by 10% during the time you are saving for it? How much money will you need for the car? Allowing you to answer "what if" questions easily is one of the strengths of a spreadsheet program. When you change a number in Excel that is part of a calculation, all other amounts affected are updated automatically. Because amounts are calculated using formulas, math errors are eliminated (assuming you initially entered the formulas correctly). Excel also allows you to set up worksheets and link them together. A sample budget created in Excel is shown in Figure 3.3.1. Like man- ual records, electronic records should be protected from unauthorized مرارة التعليم 96 Financial Literacy

وزارة التعليم 98 Financial Literacy Review Questions Choose the correct answer. 1. It is important to keep records safe and secure to protect them from fire. a. true b. false 2. Which of the following is NOT a disadvantage of using manual records? a. They need lots of space. b. They can be hacked. c. It is hard to make neat changes. d. It is difficult to locate specific data. 3. Which of the following is NOT a correct use of spreadsheet programs? a. data entry b. budget analysis manual writing of logs d. calculation of results 4. Passwords will help protect your information safe from fraud. a. true b. false