Republic of the Philippines

Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

LEARNING ACTIVITY SHEET IN BUSINESS FINANCE

Steps in the financial planning process
Name of Learner: ______________________________________
Grade Level: 12___________________________________
Strand/Track: ABM-ACADEMIC_______________________
Section: ______________________________________
Date: (Introduction to Development)

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(Engagement to Assimilation)

A. Background Information for Learners

This lesson will help you learn and understand the financial planning. Planning is

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important to ensure a direction for your day-to-day actions. When it comes to
personal financial goals, it can be long term or short-term plans. Paying off the
retirement plans, buying a new car, house and lot is an example of long-term plan

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wherein it never happen once a month or even a year. Meanwhile shorter plans can
happen in less than a year; examples are buying a new pair of shoes and calculator.
Creating a personal financial plan has six basic steps:
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1. Set a goals or objectives
2. Identify Resources
3. Identify goal-related task
4. Establish centers for accountability and time-line
5. Establish an evaluation for monitoring and controlling
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B. Learning Competency with code

Identify the steps in the financial planning process. (ABM_BF12-IIId-10)

C. Directions/ Instructions
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After going through with this unit, you are expected to:
1. Use the Learning Activity Sheet with care.
2. Read the instruction carefully before doing each task.
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3. Observe honesty and integrity in doing the tasks.

4. Record your points for each activity
5. Always aim to get at least 80% of the total number of given items.
6. Return this Learning Activity Sheet a day before Saturday or on the
schedule retrieval of module in your Barangay.
7. If you have any questions or concern, contact your teacher. Let us start
your business finance activity!
.
D. Exercises / Activities
DAY 1
D.1 INTRODUCTION
a. What I need to Know
After going through with this unit, you are expected to:

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

• Explain the importance of planning.

• Differentiate between strategic planning and tactical planning.
• Enumerate and apply the steps in planning.

b. What’s New?
Activity No. 1 “My Personal Plans”.
The first step for financial planning is setting goals and objectives. Study the

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personal plan board and read the direction below.

My Personal Plan Board

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Direction: Identify the picture above whether it is long term or short-term plans.
Write your answer in your answer sheet.
Long Term Plans Short Term Plans
1. _______________ 1. _______________
2. _______________ 2. _______________
3. _______________ 3. _______________
4. _______________ 4. _______________
5. _______________ 5. _______________
.
MY SCORE:

/10

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Guide Question:
1. Using the information given above what do you think is the importance of
planning?
___________________________________________________________________

2. What are your plans to achieve your wants?

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___________________________________________________________________

NOTE:
1. The activity you have done is planning which is an important aspect of the
firm’s operations because it provides road maps for guiding, coordinating,

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and controlling the firm’s actions to achieve its objectives (Gitman &
Zutter,2012
2. Management planning is about setting the goals of the organization and
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identifying ways on how to achieve them (Borja& Cayanan, 2015)
D.2 DEVELOPMENT
a. What I Know?
Activity 2: FINANCIAL PLANNING VOCABULARY
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Directions: Study and solve the crossword puzzle using the hints or clues
below. Write your answer in your answer sheet
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Across:
1. Outlines the short-
terms steps and
actions.
5. The money spent
on something.
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6. Is an idea of the
future desired

Down:
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2. States the plans

c. What’s In on how to
achieve the
vision.
3. It takes 1 year or
less
4. It takes 2 to 10
years
7. States where the
company wants to
be in future.

HINT/CLUE MY SCORE:
Long term plan Goal Strategic Financial Plan Mission
Tactical Vision Expenses Short Term Plan /10
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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Activity No. 3 “My financial situation”

The second step for financial planning is to identify resources such as financial
resources, production capacity and human resources. Read the scenario below
and complete the table that follows. Write your answer in your answer sheet
Scenario 1
Peter is a junior in high school. He works 15 hours a week at the mall, and his
net income after taxes is Php 6,000.00 a month. Use this number to start your
budget. He lives with his parents, so he doesn’t have rent, utility or food

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expenses. His older sister owns a car and lets him borrow it to drive to work for
500.00 each month; otherwise Peter takes the jeep for Php 500.00. He really
wants to buy a motorcycle, so he puts any leftover money of Php 1,000.00
toward savings. Peter also pays for his cell phone Php 750.00 and personal
expenses, such as going to the movies for Php 500.00, buying groceries for Php

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500.00 and purchasing gifts Php 250.00

Direction: Determine if your expenses are fixed or variable, and write them in
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the appropriate sections of the table below. Write your answer in your answer
sheet

Name:___PETER___________________ Income: _Php 6,000.00/month

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Amount
Fixed Expenses
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1.Savings for motorcycle Php 1,000.00

2.
3.
Variable Expense
1.Public Transportation (JEEP) Php 500.00
2.
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3.
4

MY SCORE:
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/5

Guided Question:
1. Using the formula of Total Expenses =Fixed Expenses+ Variable Expenses.
How much does Peter total spending in one month?
_____________________________________________________________
2. Using the formula Net Income/ Loss = Income – Total Expenses, does Peter
earned from his salary?
_____________________________________________________________
3. Do you think Peter Financial Plan is on track to achieve his goal?
_____________________________________________________________

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

d. What is It
Financial planning starts with long term plans which would then translate to short
term plans. Long term goals set the direction of the company. Short term goals are
the specific steps or actions that will ultimately reach the company’s long term
goals.

Strategic vs. Tactical Planning

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Strategic Planning Tactical Planning
( Long Term) ( Short term)
Persons More participation fromTop management is still
Involved top involved but there is more
management participation from lower

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level managers
(production,
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finance and plant
facilities) because
their inputs are crucial at
this stage since they are
the ones
who implement these
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plans
Time Period 2 to 10 years 1 year or less
Level of Detail Less More
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Focus Direction of the company Everyday functioning of

the company
Table 1: Comparison of Short-Term and Long-Term Planning (Gitman & Zutter,
2012)

For corporations, long term and short term objectives are usually identified. These
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can be seen in the company’s vision and mission statements. The vision statement
states where the company wants to be while the mission statement states the plans
on how to achieve the vision.
For corporations, the management must establish a mechanism which will allow
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plans to be monitored. This can be done through quantified plans such as budgets
and projected financial statements. The management will then compare the actual
results to the planned budgets and projected financial statements. Any deviations
from the budgets should be investigated. Every business establishes the
responsibility center for monitoring and controlling which are follows:
1. Budgeting Manager responsible for the allocation of the given budget to
purchase the necessary materials to make the event possible.
2. Production Manager answers when the product produced is defective.
3. Sales and marketing Manager liable when the sales figures drops.
4. Credit Manager Responsible for evaluation and approval of credit term of
customers.
5. Cost Accounting Manager solely responsible for the incurrence of certain
costs.

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

The steps in planning as follows:

A. Set goals or objectives.
B. Identify Resources.
C. Identify goal-related tasks.
D. Establish responsibility centers for accountability and timeline.
E. Establish the evaluation system for monitoring and controlling.
F. Determine contingency plans.
Characteristics of an Effective Plan

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• In planning, the goal of maximizing shareholders’ wealth must always be put in
mind.
• The following criteria may be used for effective planning:
- Specific – target a specific area for improvement.
- Measurable – quantify or at least suggest an indicator of progress.
- Assignable – specify who will do it.

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- Realistic – state what results can realistically be achieved, given available
resources.
- Time-related – specify when the result(s) can be achieved. (Doran, G. T. (1981).
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"There's a S.M.A.R.T. way to write management's goals and objectives".
Management Review (AMA FORUM) 70 (11): 35–36.)

DAY 2
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D.3 ENGAGEMENT
a. What is more?
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Activity No. 4: “My budget Buster”.

The third step for financial planning is to identify the goal related task. Below is
Peter’s estimated budget based on scenario above and what he actually spent in
one month’s time. Write your answer in your answer sheet

Net Income: Php 6,000.00 Budget Actual

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Fixed Expenses
Savings for a Car Php 1,000.00 Php 0.00
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Cell Phone Php 750.00 Php 1,000.00

Car Payment to his sister Php 500.00 Php 1,000.00
Variable Expense
Public Transportation Php 500.00 Php 600.00
Entertainment Php 500.00 Php 650.00
Personal Shopping Php 500.00 Php 1,750.00
Occasional Spending (gifts, repairs,
etc.) Php 250.00 Php 1,000.00
Total Expenses Php 4,000.00 Php 6,000.00
Net Php 2,000.00 Php 0.00

What changes can he make to get on track?

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

1. Short-range goal (within 1 month)

Strategy 1: Lessen the expenses of Cellphone from 1,000 to 750 find other
brand and cellphone feature that will match to my plan budget
Strategy 2:____________________________________________________
Strategy 3:____________________________________________________
2. Long-range goal (more than 1 year)
Strategy 1:____________________________________________________

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Strategy 2:____________________________________________________
Strategy 3:____________________________________________________

MY SCORE:

/5

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b. What I can Do?
Activity No 6 : “Find Someone who…”
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The fourth step for financial planning is to establish responsibility centers for
accountability and timeline. Look at the words below and put them in the appropriate
column. Write your answer in your answer sheet.

Production Manager Budgeting Manager Sales and marketing Manager

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Cost Accounting Manager Credit Manager Human Resource Manager
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Who is….? Team/Department

…..responsible for the allocation of the
given budget to purchase the necessary
materials to make the event possible
….answers when the product poduced is defective
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….liable when the sales figures drops.

…. Responsible for evaluation and approval of
credit term of customers
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…. solely responsible for the incurrence of certain

costs.

MY SCORE:

/5

e. What other enrichment activities can I engage in?

Activity No 7: “My Money Management Worksheet”
The fifth step for financial planning is establishing the evaluation system for
monitoring and controlling. For corporations used and compare the actual results
to the planned budgets and projected financial statements.

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

Direction: Use the worksheet below compare the budget to actual and fill out
the difference on the table below based on Peter Financial Plan. Write your
answer in your answer sheet

Monthly Cash Budget Budget Actual Difference

Wages Php 6,000.00 Php 6,000.00 (1)_____
Fixed Expenses

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Savings for a Car Php 1,000.00 Php 0.00 (2.)______
Cell Phone Php 750.00 Php 1,000.00 (3.)______
Car Payment to his Brother Php 500.00 Php 1,000.00 (4,)______
Variable Expense

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Public Transportation Php 500.00 Php 600.00 (5.)______
Entertainment Php 500.00 Php 650.00 (6.)______
Personal Shopping Php 500.00 Php 1,750.00 (7.)______
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Occasional Spending (gifts,
repairs, etc.) Php 250.00 Php 1,000.00 (8.)_____

BUDGET SUMMARY Budget Actual Difference

Total Income Php 6,000.00 Php 6,000.00 (9.)______
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Total Expenses Php 4,000.00 Php 6,000.00
NET Php 2,000.00 Php 0.00 (10)______
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MY SCORE:

/10
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D.4 ASSIMILATION
a. What I have Learned?
Activity 8: “I found out”
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Direction: Enumeration. Give what is asked in the items below. Write your answer
in your answer sheet
Items Answer
1.
2.
1. Give the (5) steps in financial 3.
planning
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5.

MY SCORE:

/5

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

b. Assessment
Direction: The ABM Grade 12 learners will conduct a simulation event with a Title
“Cut the Greed, Not the Green, a benefit concert to save endangered forests,
featuring a performance from the XX group of dancers). Arrange the correct order
of steps in financial planning process by ranking it 1-5. Write your answer in your
answer sheet.
____________1. The learners must have ready for contingencies plan to

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considered if something went wrong. Budgets and projected financial statements
are anchored on assumptions. If these assumptions do not become realities,
management must have alternative plans to minimize the adverse effects on the
company (Borja & Cayanan, 2015).
____________2. The identified resources for this activity are the Php 300.00 and

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manpower.
____________3. The objective was to increase awareness of saving the
endangered forest.
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____________4. Establish of different responsibilities centers formed such as
Event Chairperson, Budgeting Team, Production Team, Marketing Team,
Creative Team, and Administrative Team and must have a timeline for the event.
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____________5. For the evaluation system, monitoring and controlling the
teacher will grade them based on a predetermined criterion. Other evaluation for
awareness events may be number of attendees, feedback, etc. For the
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corporations, this can be done through quantified plans such as budgets and
projected financial statements. The management will then compare the actual
results to the planned budgets and projected financial statements.
____________6. The goal-related task is to prepare an event to increase
awareness of saving endangered forest.
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E. Guide Questions
Write your answer in your answer sheet
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1. Why Financial Planning important to the success of an organization?

_______________________________________________________________

F. Rubrics

Category Points
The student did not follow directions. (minus 2)
The worksheet was completed as instructed. (plus 8)
The worksheet was partially completed. (plus 4)
The activity was not completed. (no points)

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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

G. Reflection
Learners will write on their answer sheets their insights about the lesson.
I understand that_____________________.
I realized that _______________________

H. References

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Books
Arthur S. Cayanan, ,.et.al. Business Finance . Rex Book Store. pp. 52-53
Department of Education. Teaching Guide in Senior High School Published by the
Commission on Higher Education, 2016. pp. 119-128
Eugene F Brigham and oel F. Houston, Fundamental of Financial Management. 15th

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edition, 2018 pp 1-20

Electronic Sources
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https://www.practicalmoneyskills.com/assets/pdfs/lessons/lev9-12/SA_Lesson9.pdf
.Retrieved August 16, 2020
https://www.incharge.org/wp-content/uploads/2015/07/Student-Guide-Lesson-
Twelve.pdf Retrieved August 16,2020
https://quizizz.com/admin/quiz/5c8127c3a23f96001b29f696/chapter-2-planning
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https://www.vertex42.com/Files/download2/themed.php?file=monthly-household-
budget.xlsx Retrieved August 16,2020
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 Republic of the Philippines
Department of Education
REGION IV-A CALABARZON
SCHOOLS DIVISION OF BATANGAS

I. Answer Key
What I NEW What I know: CROSS WORD What I can Do: Activity No. 6 Assessment

Long term plans Across 1. Budgeting 1. 6

1. College Manager 2. 2
Graduation 2. GOAL 2. Production 3. 1
2. Buy Car 3. SHORT TERM Manager 4. 4
3. Vacation trip or PLAN

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3. Sales and 5. 5
Travel 4. FINANCIAL PLAN marketing 6. 3
4. House and lot Manager
8. SMART
4. Credit Manager
Short Term Plans
DOWN 5. Cost Accouting
5. Buy Shoes Manager
6. Loptop 1. LONG TERM PLAN

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7. Cellphones 5. MISSION
8. Bicycle 6. VISION
9. Cake 7. EXPENSES
10. Savings Php 5,000 9 .TACTICAL
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10. STRATEGIC
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