THE YOUNG ACCOUNTANT: UNDERSTANDING MONEY IN YOUR DAILY LIFE WRITTEN BY Zaqwan Syahmi Daing Fadzrul Asna Ayuni Nurul Aimuni Syafwanie Muhammad Aiman
LIST OF CONTENT Introduction Understanding money exchange Budgeting basics How to attract the interest of children in accounting studies Accounting Games Conclusion Making smart spending decicions Basic of credit and debt
Accounting is the process of recording and organizing financial transactions, such as spending money, earning money, and borrowing money. It helps us understand how much money we have and where it is coming from and going to. Kids may use accounting in daily life to keep track of their allowance and accumulate funds for purchases they want to make. Accounting is used in business to monitor sales, costs, and profits. Accounting is another tool used by nonprofit organisations to manage their finances and ensure efficient resource allocation. Children can learn money management skills and how to make wise financial decisions by understanding accounting. It is a crucial ability to possess in order to succeed and maintain financial stability. Intorduction WHAT IS ACCOUNTING ?
HISTORY OF ACCOUNTING With the use of record-keeping to monitor the production and distribution of goods and services in earlier civilizations, accounting has a long history. People used clay tablets, for instance, in ancient Mesopotamia to keep track of their assets and record transactions. GAAP Accounting became more standardized and regulated in the nineteenth and twentieth centuries, with the formation of professional accounting organizations and the establishment of Generally Accepted Accounting Principles (GAAP). Accounting is now an essential part of business operations, with companies, organization's, and governments all over the world using it to track and manage their financial resources. Overall, the changing needs of society and the economy have shaped the history of accounting. Accounting is now an essential part of business operations, with companies, organisations, and governments all over the world using it to track and manage their financial resources. Accounting as we know it today evolved during the Italian Renaissance in the 14th and 15th centuries. During this period, Italian merchants and traders began to use more sophisticated methods for tracking their financial transactions, such as double-entry bookkeeping. With the advancement of technology in the twenty-first century, electronic bookkeeping and accounting software have become the norm, making it easier and more efficient to record and analyse financial transactions, as well as making it available to small businesses and individuals. ACCOUNTING HISTORICAL Luca Pacioli is known as the "Father of Accounting" because of his contributions to the development of accounting after publishing a book on the double-entry system of bookkeeping in 1494.
MALAYSIA R I N G G I T M A L A Y S I A SINGAPORE D O L L A R S I N G A P U R A THAI LAND B H A T BRUNEI D O L L A R B R U N E I MYANMAR K Y A T LAOS K I P L A O S CAMBODIA R I E L PHI L IPPINE P E S O VIETNAMESE D O N G INDONESIA R U P I A H The ASEAN countries and its money currency
BASIC Budgeting
IF YOU GOT RM10 ALLOWANCE, YOU CAN BUDGET IT TO PUT RM2 IN PIGGY BANK AS SAVINGS, RM3 FOR BUYING YOUR FAVORITE TOY, AND RM5 FOR SOME ICE CREAM WITH YOUR FRIENDS. That way, you 'll make sure you have enough money for what you need and what you want, and you won't overspend and run out of money. That's the importance of budgeting. B U D G E T I N G B A S I C S Budgeting is like making a plan for your money. It helps you make sure you have enough money for the things you need, like food and clothes, and the things you want, like toys or going to the movies. Let's say, you get an allowance every week, and you also got some birthday money. A budget can help you decide how to spend and save that money To make a budget, you first write down all the money you have, like your allowance and birthday money. Then, you write down all the things you want to buy, like a toy or some candy. Next, you compare how much money you have with how much you want to spend, and make a plan for how to use the money. You might put some money into a piggy bank for saving and set aside some for spending on things you want. It's important to keep track of your spending and compare it to your budget, to make sure you are staying on track.
IN ACCOUNTING, DEBIT AND CREDIT HAVE DEBIT AND CREDIT ARE USED TO RECORD FINANCIAL TRANSACTIONS IN A SYSTEM OF DOUBLE-ENTRY ACCOUNTING. OKAY, LET'S THINK OF DEBIT AND CREDIT AS "PLUS" AND "MINUS" WHEN YOU'RE KEEPING TRACK OF YOUR ALLOWANCE OR MONEY YOU RECEIVED FROM YOUR PARENTS FOR DOING CHORES. WHEN YOU GET ALLOWANCE OR MONEY FOR DOING CHORES, THAT'S LIKE "ADDING" OR "PUTTING IN" MONEY TO YOUR PIGGY BANK. WE CAN SAY THAT'S A "CREDIT" BECAUSE YOU NOW HAVE MORE MONEY. SO, CREDIT MEANS YOU ARE ADDING MONEY AND DEBIT MEANS YOU ARE SUBTRACTING MONEY. IT'S LIKE KEEPING TRACK OF YOUR PIGGY BANK YOU KEEP ADDING AND SUBTRACTING MONEY AS YOU SPEND OR EARN MORE. THIS WAY, WHEN YOU GROW UP AND HANDLE MORE COMPLEX FINANCIAL TRANSACTIONS, YOU'LL ALREADY HAVE A BASIC UNDERSTANDING OF HOW TO KEEP TRACK OF YOUR FINANCES USING DEBIT AND CREDIT. BASICS OF DEBIT AND CREDIT FOR CHILDREN'S UNDERSTANDING AND HOW TO USE IN DAILY LIFE DEBIT AND CREDIT
CREDIT & DEBT Basic What is debt ? Debt ? Debt can be simply understood as the amount owed by the borrower to the lender.
MAKING SMART SPENDING DECISIONS
WANTS NEEDS “BUT I WAAAANT IT!”
Think about it this way : If you don't have food, you will be very hungry and won't be able to play or go to school, so food is a need. But if you don't have the latest toy, you can still be happy and have fun, so it's a want. So, it's important to make sure you have enough money for the things you need before you buy the things you want. And you can also save money for the things you want by planning and putting aside some money for it. Making smart spending decisions means being careful about how you spend your money. A good way to save money is to compare prices. You can do this by looking at different stores or websites to see where you can get something for the cheapest price. Sometimes, stores put things on sale or offer coupons that you can use to get a discount. And these can be helpful. Also, advertising can make things look very nice, and make you want to buy them, but always remember that not everything that you see on TV or on the internet is the best deal. So, always compare prices and ask your parents or someone you trust if it's a good idea before buying something. In summary, needs are important things like food, a place to live, or clothes. Wants are things that you would like to have but you don't really need. To make smart spending decisions, it's important to compare prices, look for sales and coupons, and be careful about what you're buying. "Needs " are things that you have to have in order to survive and be healthy, like food, water, and a place to live. "Wants " are things that you would like to have, but you don 't really need, like a new toy or a bigger TV.
H O W T O A T T R A C T T H E I N T E R E S T O F C H I L D R E N I N A C C O U N T I N G S T U D I E S S AVING MONEY P IGGY BANK GIVING A L LOWANCE TO K IDS LOOK FOR GAMES AND A C T IVI T IES THA T TEA CH K IDS ABOUT MONEY AND A C COUNT ING RUN A REA L-L IFE SMA L L BUS INES S GIVING REWARDS TO K IDS
saving money in piggy bank giving allowance for kids look for games and activities G i v i n g c h i l d r e n a n a l l o w a n c e i s a n o t h e r e x a m p l e t o a tt r a c t t h e m i n a c c o u n ti n g s t u d i e s . We c a n t a l k t o t h e m a b o u t b u d g e ti n g a n d h o w t o s a v e o r s p e n d t h e m o n e y t h e y r e c e i v e . We c a n t e a c h t h e m h o w t o k e e p t r a c k o f t h e i r s p e n d i n g , b a l a n c e t h e i r c h e q u e b o o k , a n d s e t s a v i n g s o b j e c ti v e s a s t h e y g e t o l d e r . A c c o u n ti n g c a n b e e x p l a i n e d t o c h i l d r e n b y u s i n g t h e c o n c e p t o f s a v i n g m o n e y i n a p i g g y b a n k . A p i g g y b a n k i s s i m i l a r t o a " s a v i n g s a c c o u n t " f o r m o n e y Y o u c a n p u t m o n e y i n t o t h e p i g g y b a n k ( w h i c h i s e q u i v a l e n t t o m a k i n g a d e p o s it ) a n d t a k e m o n e y o u t o f t h e p i g g y b a n k ( w h i c h i s l i k e m a k i n g a w it h d r a w a l ) . Y o u c a n c o u n t t h e m o n e y i n t h e p i g g y b a n k a s w e l l ( w h i c h i s l i k e c h e c k i n g y o u r a c c o u n t b a l a n c e ) . K i d s ' g a m e s a n d a c ti v iti e s t h a t t e a c h t h e m a b o u t m o n e y a n d a c c o u n ti n g a r e a l s o a v a i l a b l e . K i d s c a n l e a r n a b o u t m o n e y a n d a c c o u n ti n g u s i n g a v a r i e t y o f o n l i n e r e s o u r c e s , i n c l u d i n g i n t e r a c ti v e g a m e s a n d p u z z l e s , w o r k s h e e t s , a n d v i d e o s . T h e s e c a n k e e p c h i l d r e n ' s i n t e r e s t w h i l e t e a c h i n g t h e m a b o u t t h e s e i d e a s i n a f u n w a y .
The "Young Accountant" ebook is designed to teach children about financial literacy in a fun and easy-tounderstand way. The ebook covers the importance of financial literacy, how to understand money exchange, budgeting basics, basic concepts of debit and credit, making smart spending decisions, and how to attract the interest of children in accounting studies. It also includes examples of budgeting in children's daily life and accounting games. The ebook explain about the ASEAN countries and it's currency and how to compare prices, look for sales and coupons and the importance of not just believing in advertising. The ebook explains the difference between needs and wants, and the importance of making sure we have enough money for our needs before buying wants. CONCLUSION
A C COUNT ING GAMES !
LAO KIP BURMESE KYAT CAMBODIAN RIEL MALAYSIAN RINGGIT PHILIPPINE PESO SINGAPORE DOLLAR INDONESIAN RUPIAH VIETNAMESE DONG M A T C H T H E C O R R E C T A N S W E R THAI BAHT BRUNEI DOLLAR LIABILITIES CUSTOMER STAKEHOLDERS CREDIT CUSTOMER INCOME ASSETS SUPPLIERS PAYABLES CREDITORS PURCHASES INVOICES NET PROFIT RECEIVABLES FIXED ASSETS SALES RECEIPTS GROSS PROFIT DEBTORS REVENUE ACCOUNTING TERMS! W O R D S E A R C H : F I L L I N T H E B L A N K EQUITY
D O W N 1. An amount owed by a business. 3. A business activity that changes assets, liabilities, or owner's equity. 4. The amount of remaining value of all liabilities subtracted from the value of all assets. 5. Planning, recording, analyzing, and interpreting financial information. 7. An amount recorded on the right side. 10. The account used to summarize the owner's equity in a business. 11. An amount recorded on the left side. 13. Financial rights to the assets of a business. 2. A financial statement that reports assets, liabilities, and owner's equity on a specific date. 6. An accounting device used to analyze transactions. 8. Assets taken out of a business for the owner's personal use. 9. Type of balance on the side of the account that is increased. 12. Anything of value that is owned. ACROSS CROSSWORD PUZZLE D T L N S E E E E E W C W S S S S T A A C O R O N N T A U T T T A A T C C C G L B B T Y Y Q
M A T C H T H E C O R R E C T A N S W E R INDONESIAN RUPIAH VIETNAMESE DONG LAO KIP BURMESE KYAT CAMBODIAN RIEL MALAYSIAN RINGGIT PHILIPPINE PESO SINGAPORE DOLLAR THAI BAHT BRUNEI DOLLAR ASSETS LIABILITIES EQUITY ACCOUNTING CROSSWORD PUZZLE ANSWER: