financialtreat – will explain about Wealth Management in Educational Institutions that you will get in the following article. Let’s look at this article carefully!
The term wealth management began to be use in the early 1990s and became familiar in Indonesia in 2000 when foreign banks operating in Indonesia offere wealth management services. Wealth management is a more advance model for financial planning that provides input to individuals, families, and institutions relate to asset management.
The management of wealth assets in educational institutions is neede because every institution must have wealth and wants the maintenance, care, and development of the value of its wealth to meet its needs. Thus, all types of organizations, including Islamic educational organizations or institutions require assets and wealth institutions( assets and wealth management).
Lack of Awareness
Not all educational institutions are aware of the importance of managing assets or assets of institutions. Even many institutions do not know the wealth of their institutions. As a result, the institution is not able to maximally utilize its sources of funds to finance the needs of its institutions, and is eventually dependent on funders, (parents of students, governments, and donors). While funds or finances are vital in the implementation of education and must be manage as well as possible with the principles of financial management and accounting standards.
Wealth management is the science of how to protect and maintain wealth, accumulate and develop wealth, and how pass on wealth, and deal with transition periods. This definition provides input on the importance of everyone making financial planning from the beginning to all individuals, families, and organizations.
Education management with good wealth management, which is effective, efficient, transparent, and accountable must continue to be pursue because education with management can bring the nation up from the downturn and become an investment in the future.
In Law No.20/2003 on the National Education System article 48 states that the management of education funds is base on the principles of fairness, efficiency, transparency, and public accountability. In relation to the management of all sources of educational funds, including sources of financial potential to finance the implementation of education, the role of the principal is very important because component components such as man, money, and materials will not be able to incarnate in the form of goals that will be achieved if not given by a strong school leader.
Understanding Wealth Management
From the management perspective, Wealth Management is considere very important, because an educational institution is not only viewe as an “institution”, but also must be viewe as a corporation that requires overall management, including planning, organizing, implementation, supervision, teaching, finance, wealth, human resources, strategy, marketing, development, and so on.
Wealth management is a process of developing, protecting, and managing, the wealth of a person or organization through financial products and services. This Wealth management is also define as a comprehensive approach to managing wealth productivity in which synergy is obtaine from proper planning and development.
Wealth management can be classifie as a more advance type of financial planning that provides advice to individuals and families on land planning, asset management, taxation, and portfolio management.
The development of wealth management cannot be separate from the shift of the saving culture to the investment culture. This shift occurs, among others, because of the high rate of inflation compare to the level of income from saving so people look for ways. And ways so that their wealth is not undermine.
Some equate wealth management with asset management, financial management, or investment management. Some even mention that wealth management is just a use of the term just now. And no different from the terms that have been mentione.
Apart from all that, wealth management is the progress or development of the three forms of management in a more complete, more comprehensive sense. And creates a much more intense relationship between service providers and clients.
Wealth Management in School Organizing
Wealth Management is neede by formal pathway education providers that include early childhood education, primary education, secondary education. And higher education, especially education organizers from the community due to the limite funds and resources available. To manage wealth or finances, you should be guide by the principles and rules of financial management, namely:
- Financial planning or financial budget making every year.
- The Financial policy, managing financial governance well.
- Financial record keeping, financial bookkeeping or financial in and outflow, recording
- the initial and final balances, and so on.
- Financial statements, that is, year-end financial statements.
Audit of financial statements, conducte by public accountants
The purpose of financial management is to obtain. And find opportunities for sources of funding for school activities. In order to use funds effectively and not violate the rules. And make financial statements transparent and accountable. This is where the role of a school manager or Principal is to manage finances as well as possible by empowering human resources in the school environment through financial management activities. The funding needs of school activities can be planne, pursue procurement, recorde transparently. And use to finance the implementation of school programs effectively and efficiently.
For this reason, the objectives of financial management are a) Increasing the effectiveness and efficiency of the use of school finances. B) Increasing accountability and transparency of school finances c) Minimizing misuse of school budgets. To achieve this goal, it takes the creativity of the principal in digging for sources of funds. Placing treasurers who master in bookkeeping and financial responsibility. And utilizing them correctly in accordance with applicable laws and regulations.
Furthermore, the function of financial management in education is to carry out activities so that a goal is achieve effectively and efficiently. Strictly speaking, no formula is the same and generally applies to management functions.
Principles of Wealth Management / Financial Management Education
School financial management needs to pay attention to a number of principles. Law No. 20 of 2003 article 48 states that the management of educational funds is base on the principles of fairness, efficiency, transparency, and public accountability.
In addition, the principle of effectiveness also needs to be emphasize. The following are discusse by each of these principles, namely transparency, accountability, effectiveness, and efficiency. Here is the explanation:
Transparency
Spartan means openness. Transparency in the field of management means that there is openness in managing an activity. In educational institutions, the field of transparent financial management means that there is openness in the financial management of educational institutions. It namely the openness of financial resources and their amounts, details of use. And accountability must be clear so as to make it easier for intereste parties to find out.
Financial transparency is neede in order to increase the support of parents, communities. And governments in the implementation of all educational programs in schools. In addition, transparency can create mutual trust between the government, the community, parents of students. And school residents through the provision of information and ensuring ease in obtaining accurate and adequate information.
Accountability
Accountability is a condition of a person who is judge by others because of the quality of his performance in completing tasks to achieve the goals for which he is responsible. Financial management means that the use of tuition can be accounte for in accordance with the establishe planning.
Base on the establishe planning and applicable regulations, the school spends money responsibly. Accountability can be done to parents, communities, and governments. There are three main pillars that are prerequisites for the establishment of accountability, namely:
- The transparency of school organizers by receiving input and including various components in managing the school
- The existence of performance standards in each institution that can be measure in carrying out their duties, functions, and authorities
- The participation to create a conducive atmosphere in creating community services with easy procedures, low costs, and fast service
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Effectiveness
Effectiveness is often interprete as the achievement of predetermine goals. its emphasizes more on qualitative outcomes more. Financial management is said to meet the principle of effectiveness if the activities carrie out can regulate finances to finance activities in order to achieve the goals of the institution concerned and its qualitative outcomes in accordance with the establishe plan.
Efficiency
Efficiency is the best comparison between input (input) and output (output) or between power and yield. The power in question includes energy, mind, time, and cost. The comparison can be seen from two things:
- In terms of the use of time, energy, and cost. Activities can be said to be efficient if the use of time. Effort, and cost as little as possible can achieve the set results.
- In terms of results, activities can be said to be efficient if. With the use of time, energy and certain costs provide as many results as possible both quantity and quality.
- The high level of efficiency. And effectiveness allows satisfactory service to the community by using the available resources optimally and responsibly.
Well, that was the review of wealth management in educational institutions. Good luck!