Financial planning and improving of its methods

In the course of the study, the essence of the relationship between organizational design and financial planning was analyzed. It has been established that, despite the variety of approaches to financial planning in practice, its functions are implemented in isolation in relation to organizational design, as a result of which the possibility of achieving an optimal financial result is reduced. It has been established that ensuring the relationship between financial planning and organizational design is possible with the introduction of an integrated approach. A number of tasks are given that should be solved at the stage of organizational and financial design in order to build an integral model of the enterprise. It is proposed to use an integral model that allows organizing management processes based on the interaction of production cycles and the organizational structure of the enterprise, which will optimize the relationship between organizational and financial planning at the enterprise. Financial planning will allow you to fully use the potential of the enterprise to achieve the desired financial results in the planning period. The presented model has a modular structure. The set of interacting modules makes it possible to take into account the peculiarities of the structural organization and production cycles of a particular enterprise. Separate structural subdivisions and stages of production cycles are represented by separate modules interacting with each other according to the selected algorithm. To build modules of structural elements and components of the production cycle, methods of mathematical and simulation modeling were used. The integral model makes it possible to study the interaction between production cycles and structural organization in two modes - multi-process and mono-process. The multi-process mode is used to study manufacturing enterprises with a large range of products. The single-process simulation mode is used to study highly specialized enterprises with one production cycle, as well as enterprises with a multi-process operation mode to determine the minimum time for each production cycle. The paper presents an algorithm for modeling the relationship between financial and organizational planning, which makes it possible to investigate the need for labor, material and financial resources of an enterprise. The model makes it possible to analyze various options for the interaction of a structural organization and production cycles, as well as to predict the optimal economic performance of an enterprise at the stage of organizational design and financial planning. It is concluded that due to the close relationship between financial and organizational planning identified with the help of an integral model, it becomes possible to predict the desired financial results using the potential capabilities of an enterprise for structural reorganization or the creation of a new organizational structure.

The development of the tourism industry in Indonesia has presented new business opportunities, including in the field of container villa rental in mountainous areas. This business promises attractive potential, but is also faced with various challenges related to proper financial planning. This research aims to analyze and understand the financial planning strategies adopted by container villa rental companies in Indonesia's mountainous regions. This research uses a qualitative approach with a case study method. The data in this study was collected through in-depth interviews with relevant parties in the container villa rental company, including financial management and other decision makers. In addition, data is also collected through document studies, namely financial reports, budgets, and company business plans. The collected data will be analyzed with a qualitative approach. The results show that financial planning for container villa rental companies in the mountains in Indonesia needs to be done systematically and structured. Financial planning in villa container rental companies in the mountains includes financial goals and objectives, financial planning elements, financial projections, investment feasibility analysis, and financial performance analysis.

The assessment of secondary school success is according to the number of students they are producing to join universities and other higher learning institutions. To increase access to all pupils from primary schools to access secondary schools, the government of Kenya upgraded previously extra county schools to national status to ensure regional distribution of schools across the nation. With the upgrade, the government was required to inject funds to enable facilities expansion. Despite the upgrade, the money allocated and disbursed to schools has always been inadequate to meet the needs of students. Therefore, this demands that school management makes plans for financial mobilisation to ensure that school operations are done without interruptions. The paper looks at the financial resource planning strategies that upgraded national schools in western Kenya have in place for the purpose of improving their performance. Data was collected from eight of the upgraded schools making up the study population where principals and teachers were the respondents. A sample of 156 respondents was selected to answer research questions through interviews and questionnaires. Analysis of data was performed using quantitative and qualitative methods. SPSS facilitated quantitative data analysis. The study found out that schools experienced financial shortfall arising from inadequate capitation grants from the government and delay in payment of schools by students. To cushion themselves, schools had made several financial plans like applying for grants for infrastructure development. Further, despite schools having large tracts of land, some school management did not put into use either through growing grass for dairy farming or planting crops for subsidising school food supplies. Computed correlation statistics showed a weak correlation that existed (r=0.191 and p=0.016) between financial planning dynamics and academic performance of upgraded national schools in the western region of Kenya. The paper concludes that financial resource planning strategies had minimal effects on the academic performance of upgraded national secondary schools in Kenya Certificate of Secondary examinations. The paper recommends that there is a need for school administration to work with stakeholders to identify profitable projects that can be implemented in their school to earn income.

- Covid19 pandemic made many people lose their jobs, and many have no enough savings, so that they had to reduce their living standards. This should not happen if they did financial planning. The aim of this research to look for factors affecting interest in financial planning adoption by Millennials and Z generation. Exploratory investigation is used to identify the research problem, objectives, and framework. Quantitative approach, is used to process data from 100 respondents, using SmartPLS to test the proposed hypothesis. The result shows that level of financial planning literacy and benefit expectancy, had a significant effect on the adoption of financial planning, and on the positive attitude towards financial planning. In addition, Millennials and Z have high enough expectations that financial planning will provide well-being; and there is no mediation effect of Attitude Towards Financial Planning. As a conclusion, Millennials and Generation Z have not done adequate financial planning to ensure to meet their future living needs, such as the need to marry, have children, buy a house, continue their education, and emergency funds. Financial planning literacy and the expectation of the benefits are the factors that most influence the adoption of financial planning by millennials and Generation Z.
 Keywords: Financial Planning Literacy; Financial Health Examination; UTAUT; Social Influence; Facilitating Condition

Objective –This study aims to obtain empirical evidence of the effect of economic incentives, financial technology, and financial literacy on financial planning. Methodology –The data used in this study came from a questionnaire with 113 millennial respondents who live throughout Indonesia. Questionnaires were distributed in 2020 to understand millennial financial planning and the factors influencing it during the Covid-19 pandemic. Findings – This research found that economic incentives did not affect financial planning, while financial literacy and financial planning had a positive and significant effect on financial planning. Novelty – This study is among the first to learn the effect of the Covid-19 pandemic on millennials' finance. Type of Paper: Empirical JEL Classification: D01, D14. Keywords: economic incentive, financial literacy, financial planning, financial technology, millennials Reference to this paper should be made as follows: Harjanto, K; Osesoga, M.S; Tjhoa, E. (2022). The Effect of Economic Incentives, Financial Technology, and Financial Literacy on Millennials' Financial Planning during Covid-19, J. Fin. Bank. Review, 7(2), 98 – 106. https://doi.org/10.35609/jfbr.2022.7.2(1)

An enterprise's survival and goal achievement to a greater extent depend on its management system, financial planning strategies and employees’ reactions. The management system (authoritarian or humanistic) portrays the firm as a composite entity of a goal-setting machine (top management) and a goal-achieving machine (subordinates and employees) in an organisational context. The type of management system and its associated financial planning strategy are admittedly of significant effect in the life of any firm. This is because the goal of the organisation (for the period the financial plan covers) is contained in the financial plan. Goals must not only be set but strategies must be evolved to achieve the goals contained in the financial plan. Financial plans (autocratic or participatory) express the expectations of the enterprise from its members and specifies the employees’ duties and rights (if any) for that period. Financial plan, therefore, is an important instrument for enterprise goal achievement. This paper was necessitated by the unconcerned attitude of enterprise management with current researches in financial planning theory and practice. Available Accounting, finance and Business literature support the assertion that authoritarian management systems and their associated financial planning strategy do not always work. Rather than bringing improved performance, such a system generates anxiety, mistrust, interdepartmental strifes, quarrel with finance staff, demotivation, corrupt activities, poor productivity and other dysfunctional attitudes and behaviour which are inimical to enterprise growth and survival. On the contrary, a humanistic management system relative to its financial planning strategy triggers employees’ morale, motivation and productivity. Such a system boosts corporate existence and enhances continued goal achievement. This system is believed to serve as a panacea: a cure for all the many ills associated with the authoritarian management system and its related autocratic financial planning strategy.

Financial literacy is very important because it is needed for financial planning so that people can manage their finances more optimally. However, according to the FSA, Indonesia has a low level of financial literacy, so there is a need for research on differences in financial planning in Pesantren Luhur Malang which obtain financial literacy studies from Kitab Kuning and halaqah (a seminar of scientific study) with financial planning in Pesantren Al-Barakah Malang which gain financial literacy from Kitab Kuning only. This study aims to determine the effect of financial literacy on the financial planning of students of Pesantren Luhur Malang and students of Pesantren Al-Barakah Malang, as well as differences in financial literacy and financial planning between students Pesantren Luhur Malang and students of Pesantren Al-Barakah Malang. This study uses a descriptive quantitative approach, with two variables financial literacy and financial planning, using simple linear regression analysis and independent-sample t-test. Sampling using purposive sampling with a total sample of 52 students consisting of 26 students of Pesantren Luhur Malang and 26 students of Pesantren Al-Barakah Malang. Based on data analysis, are known that (1) financial literacy has an effect on financial planning in students of Pesantren Luhur Malang and students Pesantren Al-Barakah Malang (2) there is a difference between the financial literacy of students of Pesantren Luhur Malang and students of Pesantren Al-Barakah Malang. (3) there are differences in the financial planning of students Pesantren Luhur Malang and students Pesantren Al-Barakah Malang.

The major weakness of SMEs is in financial management and marketing. These problems obstruct their growth and ability to plan and innovate their business. This study examines the influence of personality, financial culture, and competence on SMEs' innovation and financial planning. The sample was determined by proportional random sampling repose industry type, and 285 complete data were analyzed. Data were collected through a structured offline questionnaire. A quantitative analysis approach was followed using a structural equation model. The results show that financial planning is an effective mediator of personality, financial culture, and competencies toward financial innovation. Personality and financial culture do not directly affect financial innovation but indirectly affect financial planning. However, competence directly affects financial innovation and indirectly passes through financial planning. This paper argues that SMEs have the potential to overcome economic crises by focusing on how they manage finance innovation and considering determining factors of financial planning and innovation. Finally, this study contributes to the literature on SME financial behavior and factors such as personality, financial culture, and competencies that leads to the recommendation of SME owners/managers to innovate in accessing finance. Keywords: competencies, financial culture, financial innovation, financial planning, personality

Tioxide: Computerization—The key to the future in financial planning

Wealth Management (MIC: 8.8 SIC: 6282 NAIC:523930)IGM Financial provides personal wealth creation and financial planning services. Co. offers financial planning, a family of mutual funds and other investment products and financial services, including registered retirement savings plans, registered retirement income funds, deferred profit sharing plans, life and disability insurance, guaranteed investment certificates and mortgages. Co. operates through three divisions: Investors Group, Mackenzie Financial, and Investment Planning Counsel. As of May 10 2004, Co. had about C$78.80 billion of mutual funds under management.

In an effort to promote greater financial inclusion, Kenya has implemented a number of financial sector changes in recent years, propelled by technological innovations like ATMs and mobile banking. This expansion is seen as key to achieving Kenya’s target growth rate of ten percent as outlined in Vision twenty thirty, by expanding access to financial solutions, encouraging investments, savings, and supporting the country’s development objectives. However, despite these advancements, access to formal financial services remains limited. This study aimed to investigate the relationship between financial literacy and financial inclusion among the youth in Nairobi City County Kenya, focusing on the roles of investment methods, debt management, financial planning, and saving behaviours. The study was grounded in theories of information asymmetry, behavioural economics, financial education, and financial growth. A causal research design was used, targeting a population of One million nine hundred ninety, three thousand three hundred and ninety youths in Nairobi City County, with a sample size of four hundred respondents. Data were collected using structured questionnaires, validated through a pilot study with forty participants. Reliability was ensured with a Cronbach's alpha score, and the data were analysed using descriptive and inferential statistics, including regression analysis. The study’s findings showed that the four factors, saving behaviours, debt management, financial planning, and investing practices accounted for ninety-two point eight of the variance in financial inclusion. Savings had a significant positive impact on financial inclusion, with youths who regularly save better able to access formal financial services. Debt management practices also positively influenced financial inclusion, albeit to a moderate degree, suggesting that improved debt management skills could reduce financial exclusion. Financial planning techniques were strongly associated with financial inclusion, indicating that youth who engage in organized financial planning are more likely to access sanctioned financial assistance and make sound financial decisions. Investment practices had a very strong positive impact on financial inclusion, emphasizing the importance of promoting investment literacy among young people. The study concluded that fostering saving habits, debt management skills, financial planning, and investment literacy is crucial to enhancing financial inclusion. It recommended that educational institutions, financial organizations, and government agencies work together to incorporate financial literacy into school curricula from an early age, to equip young people with the financial skills needed for greater financial empowerment. Keywords : Financial inclusion, financial literacy, saving behaviour, debt management, financial planning, investment, youth, Nairobi City County, Vision 2030. DOI : 10.7176/EJBM/16-10-06 Publication date : December 30th 2024

High early-stage failure rates among U.S. startups pose persistent challenges for economic growth and innovation. In this study, the role of financial forecasting and scenario planning in bolstering the financial resilience and growth of startups is examined, to reduce early-stage failures. Publicly available data, including U.S. Small Business Administration (SBA) statistics and a Crunchbase-derived dataset of over 7,000 U.S. startups, are used to conduct an empirical analysis linking financial planning indicators to startup outcomes. Quantitative models are employed to forecast startup failure risk and simulate how proactive financial scenario planning might alter survival trajectories. The results indicate that startups that secure sufficient funding and plan for contingencies exhibit significantly higher survival and success rates. Key predictors of venture success are identified, including greater total funding, timely follow-on funding rounds, and robust financial buffers—all of which are shown to be enhanced through rigorous forecasting. Startups with higher financial preparedness are found to be more likely to survive early challenges and achieve growth, whereas a lack of effective financial planning is commonly observed among those that “run out of cash,” a factor contributing to 29% of failures. These findings carry important implications for entrepreneurship practice and policy: improving financial forecasting capabilities within the startup ecosystem can reduce failure rates, stimulate innovation, and enhance economic growth. Recommendations are offered for entrepreneurs, investors, and policymakers to integrate forecasting and scenario analysis into early-stage venture strategy to foster greater resilience and long-term success.

Field experiments, which are a powerful research technique, are common in some fields, but they have not been widely used in studying the effect of financial and counseling planning interventions. Financial services can benefit from the expanded use of field experiments to explore potential causal mechanisms for the effects of financial planning and counseling interventions. This article describes the value of field experiments as well as the potential problems with the approach, in this context. Researchers and practitioners in financial planning and counseling should explore opportunities to conduct field experiments, especially in situations where studies can be carefully designed and implemented in a standardized way with a sufficient number of people and where valid measures are available.

재무설계 및 상담의 서비스공정성과 서비스품질이 소비자만족에 미치는 영향 (Effects of Service Fairness and Service Quality on Consumer Satisfaction in Financial Planning and Counseling)

This scientific article is devoted to defining the essence of financial planning as a key element of enterprise management. The article examines the essence of financial planning at the enterprise. The definition of the concept of «financial planning» is analyzed and summarized. The main aspects of financial planning are defined. Financial planning provides the company with the following advantages: reducing the risk of bankruptcy, increasing financial stability, rational use of resources, increasing investment attractiveness. Financial planning is an important practice for businesses seeking to achieve sustainability and growth in an increasingly competitive environment. This involves a systematic approach to the management of the company's financial resources, guaranteeing the effective allocation of funds to achieve both short-term and long-term goals. Financial planning is an integral aspect of enterprise management, it plays a key role in achieving business goals, reducing risks and ensuring long-term success. Understanding its importance and implementing key elements such as budgeting, capital structure and cash flow management can help organizations navigate a complex business environment more effectively. As technology continues to evolve, the horizons of financial planning will expand, providing new tools and methodologies to improve the decision-making process. Therefore, it is important for enterprises that strive for sustainable development and growth to understand the essence of financial planning. Effective financial planning also contributes to the development of management information systems that provide timely data on the financial status of the enterprise. Thanks to this, management can quickly respond to changes, analyze financial indicators and properly manage the implementation of financial plans. Increasing the transparency of financial processes helps build trust between all business stakeholders, including investors, suppliers and customers