Ncert Solutions Home Science Class 12 Chapter 11 Notes In PDF

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Home Science Class 12 Chapter 11 Notes In PDF, Ncert Solutions Home Science Class 12 Chapter 11 Notes In PDF, Ncert Solutions Home Science Class 12 Chapter 11 Notes


Home Science Class 12 Chapter 11 Notes


Class12th 
Chapter NameSavings and Investments
Chapter number11
Book NCERT
SubjectHome Science
Medium English
Study MaterialsImportant questions answers
Download PDFHome Science Class 12 Chapter 11 Notes PDF

Savings and Investments


In the present chapter, savings and investment have been discussed. Apart from this, necessary information is given regarding the meaning and importance of saving and means of investment. Besides, its safety and benefits while investing the savings money have also been studied. Saving is that part of the family income which, after meeting the current needs, is saved to meet future needs and is used in various production activities for the development of the country.

Home Science Class 12 Chapter 11 Notes

The purpose of saving for every family is to control expenditure for short-term situations, for future and other unexpected expenses, etc.

Factors affecting savings – Ability – family income size, cooperation, desire to save (personal nature, family affection, foresight, reputation in society, social traditions), adequate facilities for saving, information about saving mediums. Favorable environment for.

Means of savings – Bank, Post Office, Savings Bank, Life Insurance, Provident Scheme, Units National Savings, Certificates, Gifts, Coupons, Ten Year Defense Deposit Bond, Premium Perpetual Bond Basis of selection of means of investment – ​​Profit, Income tax exemption, Amount But the danger is the security of the money.

Q. 1. Why is it important to save money every month? Write four benefits of saving.

Ans. Following are the four benefits of saving-

1. To fulfill the needs of the family, like school education, higher education, marriage of children etc.

2. There is a need for money or savings for emergency situations which are anti-social and sudden.

3. Most people save for a secure future, especially for retirement from job and a comfortable life in old age.

4. To keep the standard of living high, like car, computer, air conditioner etc. These items can be purchased by continuously saving.

Q. 2. Why is it necessary for us to keep track of our expenses? 

Ans. Benefits of keeping track of expenses: At the end of the month, monthly expenses can be calculated in addition to the daily expenses incurred on various items. This can reveal what the actual expenditure is and whether it is more or less than the actual expenditure in the budget. With this knowledge, improvements can be made in the budget of the coming month.

If daily accounts are written then there is no problem of payment. If accounts are written regularly then there are no disputes in loan transactions.

Q. 3. List four types of bank accounts.

Ans. 1. Saving Account 

2. Recurring Account.

3. Fixed Deposit Account. 

4. Current Account 

Q.4. Define saving.

Ans. That part of the total income of the family which, after meeting the needs of the present, should be saved to meet the needs of tomorrow, and should be invested in productive activities for the development of the decade. , it is called saving. Saving means the part of income left after meeting the needs.

Q. 5. What do you understand by investment of savings?

Ans. That part of the income which we save every month or every year and invest in a well-organized plan from which we will get some benefit in the future is called investment.

Q. 6. Write two benefits of saving. 

Ans. There are two benefits of saving-

(a) The money saved is used to meet unexpected events. For example, in case of illness, taking long leave, due to non-payment of salary, theft or loss, and for special expenses.

(b) Meeting future expenses is possible only from the money saved, such as marriage, higher education, purchase of house or other luxury items like car etc.

Q. 7. What is meant by investment?

Ans. That part of the current income which we save every month and invest in a well-organized financial plan and as a result get some income as profit, is called investment or investment.


SHORT ANSWER TYPE QUESTIONS


Q. 1. Suggest two investment methods to your father by which he can get money after ten years. Also write three other benefits of these measures.

Ans. (i) National Saving Certificate – is an important savings scheme run by the Government of India. Any Indian can buy this certificate as per his wish. At the end of the fixed period, the buyer gets back the amount along with interest. The benefit of exemption from income tax is available on the amount (ii) Fixed Deposit Account (Fixed Deposit Account)

The deposit is made for a fixed period. This period can range from 15 days to 10 years. Its interest rate is higher than the savings account, which is calculated according to the fixed period. If needed before time, loan can also be availed on its deposits.

On depositing the money, a receipt is also given to the depositor. 

Q. 2. Tell six benefits of keeping details of household accounts. 

Ans. Advantages of Maintaining Household Record ———There are many benefits of maintaining record of household expenses. With this, family income can be utilized in a better way. Keeping such records can have the following benefits: 1. Excess expenditure can be curbed. Wastage can be reduced.

2. By keeping records of profits, the total income and expenditure of the family can be known. 

3. How much should be spent on various items can be estimated. 

4. The habit of borrowing can be stopped. It has been seen many times that after taking a loan, there is difficulty in repaying its installment.

5. It becomes easy to maintain balance between income and expenditure. Saving for the future is also an integral part of it.

6. The details of household expenses make it easier to achieve family goals. 

Q. 3. List four factors affecting family savings.

Ans. (i) Size of the family: If there are more members in the family then the savings will be less. 

(ii) Joint family – If the structure of the family is in joint family then there will be no expenditure on saving rent, saving servants and taking care of children and the savings will be more. 

(iii) Spending habits – If there are simple habits then savings are more. 

(iv) If the number of working members is more then the savings are also more.

Q. 4. Give four investment suggestions to your sister so that she can get exemption from income tax.

Ans. There are many savings and investment schemes which have proved useful for the income tax payer. It depends on the family which method of saving and capital investment it chooses. Especially for the income tax payer, the following two methods can be adopted-

(i) Life Insurance – Life insurance is a means of savings which provides financial protection to an individual or his family. In this, a fixed amount of money is insured for a fixed period. At the end of the fixed period, the insured himself or in case of death of the insured, his appointed successor gets that fixed amount. According to the Indian Income Tax Act, the insured has the facility that if he gives a specific part of his income as life insurance premium, then he will not have to pay income tax on it.

(ii) Provident Fund Scheme – This is a mandatory scheme for working people. Under this, a certain amount from the salary every month is deposited in the provident fund. If needed, an amount equal to three months’ salary can be availed in the form of loan for various appropriate purposes like marriage, education, travelling, etc., which the employee repays in easy installments.

(iii) National Saving Certificate – This is an important savings scheme run by the Government of India. Any Indian can buy this certificate as per his wish. After completing this fixed amount and at the end of the fixed period, the buyer gets back the principal amount along with interest. One gets the benefit of exemption from income tax on the amount invested.

(4) Public Provident Fund Scheme (Public Provident Fund Seheme PPF) – This facility is provided by national banks and post offices. In this, any person can deposit money in lump sum or in small installments. Interest is received at the rate of 12% per annum. A person can withdraw some percentage of money and interest after five years. Tax exemption is given in this scheme, partial amount of loan can be given at the time of need.

Q. 4. Your father wants to invest money to avail income tax exemption. Suggest them two such schemes which provide that benefit. Also tell other advantages and disadvantages of these schemes.

Ans. There are many savings and investment schemes which prove useful for the income tax payer. Are. It depends on the family which method of saving and capital investment it chooses. Especially for the income tax payer, the following two methods can be adopted-

1. Life Insurance: Life insurance is a means of savings which provides financial protection to an individual or his family. In this, a fixed amount of money is insured for a fixed period. At the end of the fixed period, the insured himself or on the death of the insured, his appointed successor gets that fixed amount. According to the Indian Income Tax Act, the insured has the facility that if he gives a specific part of his income as life insurance premium, then he will not have to pay income tax on it.

2. Provident Fund Scheme – This is a mandatory scheme for working people. Under this, a certain amount from the salary every month is deposited in the provident fund. If necessary, an amount equal to three months’ salary can be availed in the form of loan for various appropriate purposes like marriage, education, travelling, etc., which the employee repays in easy installments.


LONG ANSWER TYPE QUESTIONS


Q. 1. Give details of the advantages and disadvantages of investing in life insurance and post office.

Ans. Life Insurance – Life insurance is a great way to make essential savings. Under this, the insured mandatorily saves some of his income and invests the money for a certain period. On completion of the term, the insured receives the deposited amount and the bonus earned on it. The main feature of this scheme is that in case of accidental death of the insured, the person nominated by the insured would get the entire amount of insurance along with the bonus. Therefore this plan takes risk, turns uncertainty into certainty.

Benefits of Life Insurance – The insured adopts life insurance because of the following benefits – 1. Family Protection The main objective of life insurance is to provide financial security to the family of the insured. Especially when the insured dies suddenly.

2. For financial help in old age (Economic Help in Old Age)—- By investing the money received from this scheme on retirement or in old age, the insured becomes financially well off by investing interest etc. 

3. For Child Education or Marriage: The money invested in this scheme is received in the form of financial assistance for the education and marriage of children when they grow up.

4. Provision of Property Tax – The money received through the insurance scheme provides relief to the insured person for paying property tax after death. 

5. Relief in Income Tax – ? – The insured gets income tax exemption on the part of his income that he gives to pay the premium of the Yoga Yojana policy. Post Office Savings Bank – The facility of bank has not reached every village in the country, but since post office facility is available in every village of every state of the country, post office savings account was started. The Government of India has encouraged the habit of saving through this. 

Two persons, but one of them must be an adult, can open their account jointly. Transfer of post office savings account can also be done. Income tax does not have to be paid on interest on this account. Post office rules are the same all over India. The minimum account amount is Rs 5. It can be opened with small amount.

1. By filling the form printed in the post office, any person or more than one person can open a joint account by depositing five rupees.

2. Guardian can open this account for those below 18 years of age. 

3. Check facility can also be provided in post office account. At the time of taking the check book, the depositor should have at least Rs 100 in his account and should never have less than Rs 50 in his account.

4. On opening an account, a pass book is given in which there is a complete account of the amount deposited and withdrawn. If this passbook is lost then the entire passbook can be taken by paying Rs 5.

5. Money can be deposited in the post office in the form of bank, money order, draft and cash. One feature of this account is that money can be deposited in any post office under the main post office in which the account is opened. 

If an account is opened in a sub post office, then money can be deposited in the main post office also, but money can be withdrawn only from the post office/sub post office where the account has been opened. 6. The current interest rate in post office account is 5.5%

7. While withdrawing money, a certain form is filled and given to the post office along with the passbook. The clerk pays the amount when the signature on the form matches the specimen signature. If the signature differs from the specimen signature the amount is not paid unless a person who recognizes the depositor at the post office testifies. 

8. Transfer the account to any post office after three months of opening the account. May go.

Q. 3. Discuss the advantages and disadvantages of investing money in life insurance and units.

Ans. Benefits of investing in life insurance-

(i) Provides financial security to the family of the insured after his death. 

(ii) Even if the insured has taken a loan from someone, after his death the insurance amount is given to the heir who is completely protected from the creditors. 

(iii) On the arrangement of the insured, after his death, the insurance amount is given to the heir in installments so that the entire amount is not wasted all at once.

If he gives it as premium, he will not have to pay income tax on it. The insured has the facility that if he invests a particular portion of his income in this life insurance scheme, there is no loss.

Benefits of investing in units- The units are launched by the Unit Trust of India. Any person can buy at least 100 rupees worth Rs 10 and as much as he wants. 90 percent of the annual profit is divided among the investors. There is income tax exemption on the amount invested in the unit and its dividends.

In case of poor financial condition of the unit trust, the employer may suffer loss due to non-payment of dividend. There may be a delay in getting the money even after the maturity period is completed. Reducing the repurchase price by the unit trust may also cause financial loss to the investor.

Q. 4. Write the benefits of investment.

Ans. Advantages of Investment: If the money is invested in the right plan after taking advice from an experienced investor, then it is very beneficial. Investing money in the right plan makes a person financially secure. He does not have to worry about future financial matters, so he lives happily in the present.

By continuously investing money, a person keeps getting some interest and principal amount continuously, due to which he can raise the standard of his life from time to time. If money is required for any unexpected event, it can be spent from the deposited amount.

Can avail the benefit of the money invested. Tax Saving – Accumulated by most of the schemes of investment of money.

There is no tax on the amount contributed. This amount is completely free from income tax. For example, Bank, Saving Bank of Post Office, Cash Certificates, Life Insurance, Units, Provident Fund, Jan Ordinary Provident. Public Provident Fund, National Savings Certificate etc. For those in employment, the amount received by investment is exempt from income tax.

It is suitable for everyone, both for the business class and for the common people. Thus, in this chapter we learned what saving money is?

1. What is the importance of saving money? 

2. How can money be saved?

3. What are the means of investment?

4. Are there risks, security, benefits and tax free on depositing money through investment?

Q.5. How are risk, security, profit and tax exemption available in investment? 

Ans. Risk, Security, Profit and Tax Saving in Investment (Investment-Risk] Security, Profit, Tax Saving) An intelligent investor, while investing money, selects the appropriate one from various types of investments as per his need. He invests his money in the scheme of investment in which he feels most safe. 

It is not necessary that the principal amount always remains safe in every means of investment. With investment, exceptions can also sometimes be risky. Some of the major risks are described below – Loss of Principal Many times, when banks fail or companies go bankrupt, the investor gets back only a certain percentage of the capital invested by him, which leads to loss of principal.

Loss of income – Sometimes companies get less dividend even in case of less profit. Similarly, due to reduction in the interest rate of the bank, there is loss of income.

Non-receipt of cash back on time: Due to non-receipt of the money appropriated by a person on time, many of his essential tasks are not possible. Due to this, the investor faces inconvenience and loss even after getting the investment done.

To make investment safe and to avoid financial crisis, some special things should be paid attention to which are as follows-

(1) Investing money in different schemes – The investor should invest money in different schemes so that even if there is a loss from one scheme, he can get profit from the remaining schemes at the time of his need.

(2) Regular accounting – The investor should keep accounts of all the schemes in which he invests his money, so that he can immediately come to know about the slightest manipulation in any scheme.

(3) Knowledge of increase and decrease in prices – The investor should keep getting complete information about the prices of the means of investment from time to time. 

(4) Consult experienced investors while investing money.

Investors should also be consulted, so that funds can be invested in the right scheme.

 Q. 6. Your brother wants to invest his money. Explain to them about the Public Provident Fund Scheme and also tell them its benefits. Also explain the difference between Public Provident Fund and Provident Fund.

Ans. Provident Fund Scheme: This scheme is for all categories of working employees. Every employee compulsorily allocates an amount from his salary to this scheme. There are two types of this scheme- 

1. General Provident Fund Scheme.

2. Contributory Provident Fund Scheme.

1. General Provident Fund Scheme – This scheme is only for government employees. In this, every employee deposits at least 10% of his basic salary every month. There is no maximum limit for this scheme. This amount is deducted from the employee’s salary. On retirement or death of the employee, this amount along with interest is given to the person nominated by the employee. Income tax exemption is also available on this amount. 

2. Contributor Provident Fund Scheme – This scheme is applicable to employees of non-government, semi-government organizations. In this scheme, every employee deposits at least 8% of his basic salary and the management of the organization also deposits an equal amount in the employee’s account. On retirement or death of the employee, this amount is given along with interest to the employee or the person nominated by the employee. Income tax is not payable on the amount deposited by the employee in this scheme also.

Rebate is available in 15-year Public Provident Fund. Any person can deposit Rs 100 per year in State Bank of India. to Rs 20,000. people by depositing till

Can open provident fund account. The depositor has to deposit this amount for 15 years. At the end of the period, the depositor gets the deposited amount back along with interest. Income tax exemption is available on the amount deposited in this scheme and there is no income tax on the interest.

Q.7. Discuss the advantages and disadvantages of investing money in Public Provident Fund. 

Ans. Public Provident Fund Account – This long-term scheme of the National Savings Organization was started by the Government of India in 1968 and today it is at the top among its counterpart schemes. 

In this, not only huge exemption is available on taxes but also there is an attractive and useful scheme for all groups (salaried people, businessmen, retired people etc.). The account can be opened in main post offices or selected branches of State Bank of India and its branches and some other nationalized banks. 

The minimum amount in a financial year is Rs 100/- and the maximum is Rs 60,000/-. This amount can be deposited in one go or in maximum 12 installments (in a year). This is Rs 5. Should be in multiples of . Withdrawal facility is available once every year from the seventh financial year from the date of account opening.

Loan facility: First loan up to 25% of the balance amount at the end of the financial year can be availed before the third financial year from the end of the financial year of account opening but this facility can be availed before the expiry of 5 years from the end of the year of account opening. can only be obtained. The loan can be repaid in convenient lump sum installments not exceeding 36. If the loan can be repaid in 36 months then interest will be charged at the rate of 1%. The full interest must be paid in monthly installments not exceeding two.

If the loan amount is not repaid within 36 months, interest at the rate of 6% will be charged on the remaining amount.

Tax Benefits – Deposits are eligible for income tax exemption along with other approved securities as per Section 88 of Income Tax.

If due to any reason the amount is not deposited in the Public Provident Account in any year, the account can be reopened by paying a default fee of Rs 10 for each year of default along with an amount of Rs 100 for each year of default. Enrollment

Facility – The depositor can nominate more persons to receive the amount deposited in his account in the event of his death, but no nomination can be made in the account opened on behalf of a minor.

Q.8. Your sister wants to invest capital and you suggested her to do it in Dakar. This is the right suggestion. Present your arguments to support this.

Ans. Post Office Savings Bank is a good suggestion for capital investment. The goal of capital investment is to grow your wealth safely. The following arguments are presented in favor of capital investment in the post office. 

(a) The rules of the post office are the same all over India and there are post office branches in every village.

(b) An account can be opened in the post office with a minimum amount of Rs 5/-.

(c) The savings money remains completely safe in the post office. (d) Income tax exemption is available on money deposited in the post office.

(e) Post Office provides many such schemes which provide good interest and dividends. Lotteries are also held on which many prizes are announced. Thus, it is best to deposit savings money in the post office. 

(f) N.S.C. By investing money in National Savings Certificate and keeping it in the bank, one can also get loan.

(g) Post offices are nearby, it is very easy to reach them.


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