Welcome to CENFACS’ Online Diary!
17 August 2022
Post No. 261
The Week’s Contents
• Financial Updates – In Focus for 2022 Edition: Financial Management of Crises
• Following the Direction of Poverty Reduction this Summer via Terrestrial Ecosystem Services provided by Forests – Trending Topic in Focus from Week Beginning 015/08/2022: Cultural Services
• Happiness and Healthiness Journal – Creative Activity No. 4: Create Your Journal of Income
... And much more!
Key Messages
• Financial Updates – In Focus for 2022 Edition: Financial Management of Crises
How to financially manage crises (e.g. cost-of-living crisis) using your household financial accounts
In this year’s edition of Summer Financial Updates (SFU), we provide advice, tips and hints about the processes of planning, organising, directing and monitoring the financial activities and resources of households with a view to working with them to achieve the goal of poverty reduction.
The 2022 Edition of SFU, which is about applying the general management principles to financial resources of our users’ households in order to reduce poverty, also highlights ways of handling the cost-of-living crisis using the financial tools that are at households’ disposal.
Many of our users do not know these tools exist for them. The 2022 Edition of SFU provides us an opportunity to share with them these tools and how they can effectively and efficiently handle them in order to reduce poverty, the cost-of-living poverty.
It is important to financially better manage households, especially at this time of the cost-of-living crisis. At this challenging time, the prices of many goods (e.g. food) and services (e.g. utilities) are rising while incomes are falling because of the rise in inflation. In this kind of tough economic situation, being able to better manage the cost-of-living crisis via a skilful use of financial accounts can help to reduce the harmful impact of the crisis.
Under the Main Development section of this post, we have provided key highlights making the contents of the 2022 Edition of SFU. For those members of our community who may be interested in the 2022 Edition of SFU and who have any queries to raise, they are welcome to contact CENFACS.
• Following the Direction of Poverty Reduction this Summer via Terrestrial Ecosystem Services provided by Forests – Trending Topic in Focus from Week Beginning 015/08/2022: Cultural Services
Following the direction of poverty reduction via cultural ecosystem services provided by forests is this week’s episode of our Summer series of trending activity. In this week’s episode, let us try to understand cultural ecosystem services and briefly explain the way in which we shall follow the direction of poverty reduction with or via these services.
• • What are cultural ecosystem services?
From the literature review of cultural ecosystem services, we have retained the following two definitions which respectively come from the Food and Agriculture Organisation of the United Nations (FAO) and the Forest Research.
According to the FAO (1),
“Cultural services are non-material benefits people obtain from ecosystems. They include aesthetic inspiration, cultural identity, sense of home, and spiritual experience related to the natural environment”.
As to the definition given by Forest Research (2), it states that
“Cultural ecosystem services are identified as the benefits people gain from their interactions with different environmental spaces, such as woods or parks, and the activities, such as walking and cycling, they undertake in these spaces. Those interactions give rise to a variety of wellbeing benefits that are wide ranging and can be valued in numerous ways, via monetary, qualitative, quantitative, and mixed methods. Cultural ecosystem services and benefits can include health, learning, social connections, sensory experiences, cultural and symbolic importance and identity”.
These two definitions share in common what people gain as benefits via cultural benefits.
Besides the above stated benefits, there is also the benefit of poverty reduction via cultural ecosystem services. This is the kind of benefit we are looking at in our Summer series of trending activity.
• • Following the direction of poverty reduction via Cultural Services
One thing is to interact with the environmental space or to undertake activities (such as running or walking or even cycling in this space or park) for fun or as leisure without any poverty reduction goal or need. Another thing is to do it as a way of reducing poverty linked to poor health, the lack of social connections, deprivation in learning, the absence of contact with nature, etc.
If poor health, lack of social connections, deprivation in learning and the absence of contact with nature are the kinds of poverty people are experiencing and cultural services can succeed in reducing or ending these types of poverty; then it makes sense to follow the direction of poverty reduction via cultural ecosystem services provided by forests.
By following the direction of poverty reduction via cultural services, it is possible to identify cases that can be considered as compelling evidences on how terrestrial ecosystem services like the cultural ones are providing poverty reduction benefits besides other wellbeing advantages.
The above is CENFACS‘ way of following the direction of poverty reduction via cultural services provided by forests. To follow this direction with us, just contact CENFACS.
• Happiness and Healthiness Journal – Creative Activity No. 4: Create Your Journal of Income
With the lingering effects of the coronavirus and the impact of the cost-of-living crisis many people’s incomes and income-generating capacity and opportunities have been changed or simply destroyed. Despite that one can create a journal that explains their experiences, feelings and thoughts in terms of happiness and healthiness about income over this Summer 2022.
For example, one can explain how with restricted or limited income they have been able to meet Summer 2022 holiday expenses or simply do the things they wanted or planned to do with happiness and healthiness. They can as well include in their journal the effort they undertook to make extra income to meet their Summer living costs. They could finally share their story if they received or given any financial help.
They can record their thoughts, feelings, experiences and memories in relation to income and income-generating capacity or opportunities. They can share with the community their experience of happiness and healthiness with income. This can be recorded in their journal and be shared by the end of Summer 2022.
To share the contents of their happiness and healthiness journal relating to income and income-generation, to happy and healthy financial life via income, and help build a better Summer holiday experience; they can contact CENFACS.
Extra Messages
• Summer 2022 Activities, Projects and Programmes: Help and Advice are AVAILABLE!
We believe that everybody is enjoying their Summer break wherever they are and whatever they are doing, despite the lingering effects of the coronavirus, extreme temperatures and the cost-of-living crisis.
We also hope that those who are working over this Summer are getting on well with their work while finding some space to accommodate and enjoy the good weather of Summer.
We finally trust that Summer 2022 Happiness and Healthiness Projects, including other Summer activities and programmes we have offered so far, are helping the community to happily and healthily pass this Summer.
For those who need any help or advice regarding any of the aspects of the Happiness and Healthiness Projects or any other Summer activities or programmes which are on offer, they should not hesitate to contact CENFACS.
We would like to reiterate our wish to all multi-dimensional Poor Children, Young People and Families of Happy, Healthy, Vulnerability-free, Peaceful, Safe and Sustainable Summer Days.
• Summer Triple Pack is Still Running
Our Summer Triple Pack made of Track, Trip and Trending continues this week. The key message we would like to get across this Triple Pack is to try to help reduce poverty by undertaking any of these three activities: running, visiting projects and analysing trends. Let us make some reminding points about each of them.
• • COVID-19 Secure track to help reduce the cost-of-living poverty
This activity (Activity 8.1) of the pack is about COVID-19 Secure Run 2.5 miles (nearly 4 km) with people in need to create user-generated information opportunity and to learn about their problems.
For those who have completed their 2.5 miles of running with people, please do not hesitate to share with us your experience. This activity is also performed under August 2022 Knowledge Year/Project (Activity 8.1).
For those who are deprived to physically run, they can virtually run to help reduce poverty with CENFACS. Among them are people who may be experiencing handicap to do physical activity of running to help reduce poverty. One could include the following in their list:
People or parents caring for very young children, pregnant women, elderly people, disable people, those who are not physically fit or mobile to run, those who do not have opportunity to physically run, etc.
If you are organising this kind of virtual activity or event, let us know. It is also better to advise us that the people participating in the virtual run are the physically deprived ones we have listed above or they have a serious handicap prohibiting them from undertaking any physical engagement.
• • Virtual or In-person Trips to Hybrid Running Projects and Local People
As part of Knowledge Year’s/Project Activities of the month and Activity 8.2, we have suggested to Undertake Virtual or In-person Visits or Tours of 3 knowledge-based projects or activities; projects or activities based on facts, information and skills acquired through experience or education, and which support people during this time of rising costs of living.
These virtual visits are not only online recreational activities. They are also a learning and development opportunity in terms of understanding the following:
√ The way in which people or communities living with the lingering effects of the coronavirus, particularly those who are undertaking coping and survival strategies, are dealing with these effects as well as poverty and vulnerability induced by the cost-of-living crisis
√ What is needed to help them overcome the problems they have
√ What lessons that can be learnt and shared from their sensory experiences and knowledge-based projects to improve future actions, planning and decision-making processes
√ The demand in terms of policy development and response to meet similar needs in the future.
Furthermore, Virtual Trip as part of our Summer Triple Pack includes field work research in Africa and anywhere else in the context of poverty relief and sustainable development projects.
For those who are having or have had these experiences and results of field work research, please do not hesitate to share them.
• • Online Trending Activity by following the direction of poverty reduction via terrestrial ecosystem services provided by forests
As part of CENFACS’ Knowledge Year and Project and Activity 8.3, we have asked to those who can to Carry out online search to find 6 Trends in poverty reduction for projects that are based on the knowledge or practical understanding of needs; projects that use knowledge-based economy to support people to navigate their way out of poverty.
The above mentioned Summer Triple Pack can be contextualised by considering the lingering effects of the coronavirus, changing climate (particularly but not exclusively extreme temperatures/weather) and the cost-of-living crisis.
• Food Security and Vulnerability Analyses of the Week:
Effects of Rising Prices of Food on Daily Intake of Calories by CENFACS Members
We are continuing to work on matters raised in the 76th Issue of FACS, which is about Food Security in Africa. As part of this continuity, we are trying to analyse the extent to which rising prices of food is affecting food consumption and the quantity of calories taken by the members of our community.
According to the National Health Service (3),
“An ideal daily intake of calories varies depending on age, metabolism and levels of physical activity, among other things. Generally, the recommended daily calorie intake is 2,000 calories a day for women and 2,500 for men”.
The findings of our analysis will help to determine whether the effects of rising prices of food are averagely or insignificantly or significantly impacting the daily intake of calories of the members of our community. In other words, it will help to find out how food insecure and vulnerable some of our members are in terms of the consumption of daily calories. The findings can also indicate how happy and healthy are our members.
To conduct and complete such analysis, it requires data. Therefore, we need data. For those of our members who would like to contribute to the analysis, they can provide us with information about their consumption of daily calories as well as their food availability, access, utilisation and stability over this period of rising prices of food.
To participate or donate data about your consumption of daily calories, please contact CENFACS.
Message in French (Message en français)
Le Triple Paquet Estival est toujours en cours d’exécution
Notre triple paquet d’été composé de Piste, Voyage et Tendances se poursuit cette semaine. Le message clé que nous aimerions faire passer à travers ce triple paquet est d’essayer d’aider à réduire la pauvreté en entreprenant l’une de ces trois activités: courir, visiter des projets et analyser les tendances. Résumons chacune de ces activités.
∝ Piste sécurisée contre le COVID-19 pour aider à réduire la pauvreté liée au coût de la vie
Cette activité (activité 8.1) du paquet consiste à courir 2,5 miles (près de 4 km) sur une Piste sécurisée contre le COVID-19 avec des personnes dans le besoin afin de créer des opportunités d’information générées par ces personnes et d’en apprendre davantage sur leurs problèmes. Cette activité est également réalisée dans le cadre de l’Année/Projet de Connaissances 2022.
∝ Voyages virtuels ou en personne vers des projets hybrides en cours d’exécution et des populations locales
Dans le cadre des activités du mois de l’Année/Projet de Connaissances et de l’Activité 8.2, nous avons suggéré d’entreprendre des visites virtuelles ou en personne de 3 projets ou activités fondés sur le savoir; des projets ou des activités basés sur des faits, des informations et des compétences acquises par l’expérience ou l’éducation, et qui soutiennent les gens pendant cette période de hausse du coût de la vie.
∝ Tendances en ligne permettant de suivre la direction de la réduction de la pauvreté à travers les services écosystémiques terrestres fournis par les forêts
Dans le cadre de l’Année/Projet de Connaissances et de l’activité 8.3 du CENFACS, nous avons demandé à ceux/celles qui le peuvent d’effectuer une recherche en ligne pour trouver 6 tendances en matière de réduction de la pauvreté pour les projets basés sur la connaissance ou la compréhension pratique des besoins; des projets qui utilisent l’économie du savoir pour aider les gens à sortir de la pauvreté.
Le triple paquet d’été mentionné ci-dessus peut être contextualisé en tenant compte des effets persistants du coronavirus, du changement climatique (en particulier, mais pas exclusivement, des températures / conditions météorologiques extrêmes) et de la crise du coût de la vie.
Pour ceux/celles qui ont des problèmes dans la réalisation de ces activités, ils/elles peuvent contacter le CENFACS pour qu’ensemble nous trouvons une solution à ces problèmes.
Main Development
• Financial Updates – In Focus for 2022 Edition: Financial Management of Crises
How to financially manage crises (e.g. cost-of-living crisis) using your household financial accounts
Any households, including those making the CENFACS Community, can earn income, receive transfer payments if their income is not enough to cover their expenses, hold assets, have liabilities, etc. They try to save and invest if they can. They also spend on the basic necessities of life such as accommodation, food, education, health, transport and travel, communication, etc. in order to maintain their life.
They earn and spend in normal time and in time of crisis; just as they manage their finances in normal and crisis times. However, in times of crisis they may need to use their financial accounts in a different way in order to financially manage crises. It is the use of their financial accounts in the way that respond to the challenge that crises can bring which is about in this year’s SFU and which has been highlighted below.
• • Key Highlights of this Summer Financial Updates
The following headings contain the main points highlighted in this Year’s SFU:
∝ What is crisis management?
∝ Financial management applying to household users’ financial resources
∝ How to financially manage crises using your household financial accounts
∝ Crisis management through household financial assets and liabilities
∝ Advice, tips and hints about households’ financial management
∝ Working with users/CENFACS Community via financial management tools to manage crises and achieve the goal of poverty reduction.
Let us unpack the above headings.
• • What is crisis management?
Many of our users manage crises (like the coronavirus crisis, the climate change crisis, the current cost-of-living crisis, etc.) without sometimes realising they are doing it. Perhaps, if one understands crisis management this understanding can help them in better managing future crises.
Our understanding of crisis and crisis management come from what ‘managementstudyhq.com’ (4) argues, which is the following:
“Crisis refers to an unexpected unplanned situation or rather threat that suddenly dawns upon from a business out of nowhere. It means an event that threatens the very stability of a business. The process by which such events or threats are effectively managed and dealt with is known as Crisis Management”.
“Crisis management is the process through which an organisation tackles an unfavourable event that negatively affects organisation’s its stakeholders, or the general public”.
This definition of crisis management will be used whether it is about proactive or responsive or recovery crisis management.
Although these definitions relate to a business organisation, they can however be used for other types of organisation like households. In this year’s SFU, we are referring to these two definitions in order to work with our users to help them manage crises (like economic crisis, energy crisis, food crisis, cost-of-living crisis, climate change or natural crisis, etc.).
• • Financial management applying to household users’ financial resources
It will make easy for any of our users who would like to financially manage any crises to have some basic understanding of financial management and its principles that govern the use of financial resources and assets.
• • • What is financial management?
To define financial management, let us first explain the word management.
In their Collins Dictionary of Business, Christopher Pass et al. (5) define management as
“The process of organising and directing human and physical resources within an organisation so as to meet defined objectives. The key management roles are: planning, control, coordination and motivation” (p. 350)
From this definition, one can then find out what is financial management. In the website ‘Pfh-university.com’ (6), financial management is defined as
“Strategic planning, organising, directing, and controlling of financial undertakings in an organisation or an institute. It also includes applying management principles of the financial assets of an organisation, while also playing an important part in fiscal management”.
So, financial managers in any of households of our users (e.g. parents or household heads) will proceed with the following:
√ Calculate the amount of capital their given household needs
√ Form the capital structure of that household
√ Invest the capital where there are opportunities to invest
√ Make decisions about savings the household needs
√ Allocate or distribute the capital to given needs/wants within the household
√ Effectively manage the money that household possesses and earns
√ and Control household’s finances.
To achieve their role as financial managers, household heads or parents (if there are children involved) need to work with or follow some basic principles.
• • • Principles that govern the use of financial resources and assets
There are many principles of financial management. To make matter easy, we are going to refer to the 10 basic principles of financial management written by Kathryn Bergeron on the ‘quicken.com’ (7) website. These principles are:
1) Organise your finances
2) Spend less than you earn
3) Put your money to work
4) Limit debt to income-producing assets
5) Continuously educate yourself
6) Understand risk
7) Diversification is not just for investments
8) Maximise your employment benefits
9) Pay attention to taxes
10) Plan for the unexpected.
From the above mentioned principles, Kathryn Bergeron’s 10th principle (i.e. Plan for the unexpected) advises anyone “to make sure unexpected financial exposure does not derail your [their] long-term goals and your [their] family’s financial security“.
Crises (like the coronavirus and the cost-of-living ones) can derail long-term goals and financial security. This is why they need to be financially managed in better and sustainable way.
Financially managing crises in a better and sustainable way imply the application of financial management principles that govern the use of financial resources and assets. In other words, the process of organising and directing resources can be applied to financial resources and to non business entities like households. It is this theory of management that we are trying to apply within this year’s SFU.
In practical terms, it means that most of our sensible users would like to organise and direct their incomes and expenses. They would like to strategically plan, control, coordinate and motivate their financial matters. In times of crises (like the coronavirus disaster and the cost-of-living crisis), they would like very much to do it. But, how can they effectively do it using their household financial accounts?
• • How to financially manage crises using your household financial accounts
Although there is not a such guideline documents to follow on aspects of the accounting treatment of household finances, household financial accounts will be regrouped under the following financial statements: household balance sheet, budget, surplus and loss account, cash flow projections, etc. The accounts making these statements can help to financially and strategically manage crises.
For example, being able to better manage your accounts linked to utilities can help to reduce the detrimental effects of rising costs of energy, water and fuel on household finances and wellbeing. This is concerned both joint and separate financial management of household finances.
It is not a surprise if Kendra Kinnison (8) argues that
“To live a happy and peaceful life with financial freedom, it’s very important to manage family finances properly”.
At this time of the cost-of-living crisis, it is even more relevant to wisely manage household finances in order to sustain and come out of this crisis bold. A better handling of household financial accounts can be a contributing factor.
• • Crisis management through household financial assets and liabilities
The wealth of households consists of many items. One line of items is household financial assets which could be saving deposits, investments in equity, shares and bonds. Besides that, it would be a major error to forget that households may also have liabilities. Therefore, in their approach to managing crises, they need to include any liabilities they may have.
Although most of users may not be having the kinds of assets described above, those who may have any little financial assets they can use them to manage crisis like the cost-of-living one or any other one. They can as well convert their physical assets, if they have any at market value, into financial ones and use the finances generated to manage the crisis. Of course, this is without ignoring any liabilities they may have.
• • Advice, tips and hints about households’ financial management
Not all user households making the CENFACS Community have the skills and capacity to financially manage crises using with confidence their financial accounts. Some of them need advice, tips and hints to plan, organise, direct and monitor their financial activities and resources.
The good news for them is that this year’s SFU provides advice, tips and hints on financial management. For example, there is a tip on how to adjust the food inflation into the food budget. For those who would like to access the advice, tips and hints on financial management of crises, they are welcome to contact CENFACS.
• • Working with users via financial management tools to manage crises and achieve the goal of poverty reduction
The all purpose of SFU is not to provide theories or descriptions. Instead, SFU as a resource is designed to capacitate the CENFACS Community to address challenging issues they face. In this case the challenging issue is about how to financially manage crises (like the current cost-of-living crisis) via a good handling of financial accounts making any of our members’ household.
In this exercise of addressing challenges, our members are not let alone. CENFACS can work with them. CENFACS can work with them to accomplish the following tasks:
√ To develop a realistic crisis financial management plan or strategy
√ To improve their skills (financial literacy and numeracy skills) and techniques to financially manage crises like the cost-of-living crisis
√ To preserve their financial credibility and credit scores during crisis period and after crisis
√ To make financial management easier for them in time of crisis
√ To optimize their financial health using technology available on the market
√ To calculate their net worth even during the crisis time
Etc.
CENFACS can work with users via financial management tools to manage crises and help them achieve the goal of poverty reduction, particularly the reduction of the cost-of-living poverty during this Summer 2022.
In this respect, SFU provides some financial management tools to share, such as web-based financial services software for those who able to use them, shared spreadsheets, web apps, in brief the appropriate tools for managing household finances, etc.
Many of these financial management tools for household can be found online. To help find them easily, SFU lists a number of websites and addresses that could be relevant to our users’ needs and that contain the following tools: household budget calculator and spreadsheets, budget worksheet printable, household budget planner, etc.
In brief, they include calculators, trackers, indicators, dashboards, estimators and planners to help households to financially manage their resources in normal and crisis times.
However, because crises can be of different types and various nature; therefore responses or ways of managing them could be distinct. As a result, the pitch would be to customise financial management tools in order to meet the features of crisis and the need of users.
CENFACS can work with them to choose or select the appropriate financial management tools to manage crises they want to tackle. This model of working together will help them not only to manage crises, but also to build a success story of crisis management and of poverty reduction.
The above highlights are just a selection of some of matters raised in this year’s SFU. For those who would like to dive deep into how to financially manage crises using their household financial accounts, they are welcome to contact CENFACS. Likewise, those who want to read this year’s resource of SFU beyond the aforementioned highlights, they can as well contact CENFACS.
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• References
(1) https://www.fao.org/ecosystem-services-biodiversity/background/cultural-services/en (accessed in August 2022)
(2) https://www.forestresearch.gov.uk/research/cultural-ecosystem-services-values-and-benefits/ (accessed in August 2022)
(3) https://www.nhs.uk/common-health-questions/food-and-diet/what-should-my-daily-intake-of-caloriess-be/ (accessed in August 2022)
(4) https://www.managementstudyhq.com/what-is-crisis-and-different-types-of-crisis.html (accessed in August 2022)
(5) Pass, C., Lowes, B., Pendleton, A. & Chadwick, L., (1991), Collins Dictionary of Business, HarperCollins Manufacturing, Glasgow
(6) https://www.pfh-university.com/blog/financial-management-what-is-it-and-what-is-it-important.html (accessed in August in 2022)
(7) https://www.quicken.com/10-basic-principles-financial-management#(accessed in August 2022)
(8) Kinnison, K., How to Manage Family Finances at https://wikihow.com/Manage-Family-Finances (accessed in August 2022)
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• Help CENFACS keep the Poverty Relief work going this year
We do our work on a very small budget and on a voluntary basis. Making a donation will show us you value our work and support CENFACS’ work, which is currently offered as a free service.
One could also consider a recurring donation to CENFACS in the future.
Additionally, we would like to inform you that planned gifting is always an option for giving at CENFACS.
Donate to support CENFACS!
FOR ONLY £1, YOU CAN SUPPORT CENFACS AND CENFACS’ NOBLE CAUSES OF POVERTY REDUCTION.
JUST GO TO :Support Causes – (cenfacs.org.uk)
Thank you for visiting CENFACS website and reading this post.
Thank you as well to those who made or make comments about our weekly posts.
We look forward to receiving your regular visits and continuing support throughout 2022 and beyond.
With many thanks.
