Bachelor of Elementary Education
1st Semester, AY 2022-2023
Module
In
Building and Enhancing New
Literacies across Curriculum
College of Education
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Palawan State University - CCRD Narra for educational purposes only.
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Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
Module 4: FINANCIAL LITERACY
Overview
Students will be making significant financial decisions that will impact not only their
current well-being, but their future financial situation as well. “Financial Literacy for College Students” is
an interactive workshop that will improve students’ financial knowledge through class discussion on a
variety of topics, including budgeting and credit cards as well as identifying resources for additional
support and information.
Learning Outcomes
At the end of this module, you are expected to:
1. Define financial literacy;
2. Assess level of personal financial literacy using set of standards and
questions;
3. Start practical steps to develop personal financial literacy.
Let Us Explore
Let Us Explore
Discussion;
The National Endowment for Financial Education defines financial literacy as "the ability
to read, analyze, manage, and communicate about the personal financial conditions
that affect material well-being. It includes the ability to discem financial choices, discuss
money and financial issues without (or despite) discomfort, plan for the future, and
respond competently to life events that affect every day financial decisions, including
events in the general economy" (Incharge Education Foundation, 2017). To put it
simply, it is "the ability to use knowledge and skills to manage one's financial resources
effectively for lifetime financial security" (Mandell, 2009). Meanwhile, Hastings,
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Palawan State University - CCRD Narra for educational purposes only.
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Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
et al. (2013) refers to financial literacy as: 1. knowledge of financial products (e.g., a
stock vs. a bond, fixed vs. adjustable rate mortgage):
2. knowledge of financial concepts (e.g.. inflation, compounding.
diversification, credit scores);
3. having the mathematical skills or numeracy necessary for effective financial decision
making: and 4. being engaged in certain activities such as financial planning.
Public and private institutions alike have recognized the need for financial literacy to be
incorporated in the school curriculum. Financial education and advocacy programs of
the public and private sectors have been identified as key areas in building an improved
financial system in the Philippines (Go, 2017). Republic Act 10922, otherwise known as
the "Economic and Financial Literacy Act." mandates DepEd to "ensure that economic
and financial education becomes an integral part of formal learning."
The Council for Economic Education, the leading organization in the United States that
focuses on the economic and financial education of students from Kindergarten through
high school developed six standards gearing toward deepening students' understanding
of personal finance through an economic perspective. The standards and key concepts
are summarized in the table below.
Standards Key Concepts
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Palawan State University - CCRD Narra for educational purposes only.
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Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
Earning income income earned or received by
people
different types of jobs as well as
different forms of income earned or
received
benefits and costs of increasing
income through the
acquisition of education and skills
government programs that affect
income types of income taxes
labor market
Buying goods and Services scarcity, choice, and opportunity
cost
factors that influence spending
choices, such as advertising, peer
pressure, and spending choices of
others
comparing the costs and benefits of
spending decisions
basics of budgeting and planning
making a spending decision
payment methods, costs, and
benefits of each
budgeting and classification of
expenses
satisfaction, determinants of
demand, costs of information
search, choice of product durability
the role of government and other
institutions in providing information
for consumers.
Saving concept of saving and interest
how people save money, where
people can save money, and why
people save money
the role that financial institutions
play as intermediaries between
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Palawan State University - CCRD Narra for educational purposes only.
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Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
savers and borrowers
the role government agencies such as the
Federal deposit Insurance Corporation
FDIC) play protecting savings deposits
role of markets in determining
interest rates
the mathematics of saving
the power of compound interest
present versus future value
financial regulators
the factors determining the value of
a person’s savings overtime.
Automatic saving plans “rainy
days”funds.
Saving for retirement
Using Credit concept of credit and the cost of
using credit
why people use credit and the
sources of credit
why interest rates vary across
borrowers basic calculations related
to borrowing (principal interest,
compound interest)
credit reports and credit scores
behaviors that contribute to strong
credit reports and scores impact of
credit reports and scores on
consumers
consumer protection laws
Financial Investing concept of financial investment
variety of possible financial
investments
calculate rates of return
relevance and calculation of real
and after-tax rates of return
how markets cause rates of return
to change in response to variation
in risk and maturity
how diversification can reduce risk
This material has been prepared and communicated to you by or on behalf of
Palawan State University - CCRD Narra for educational purposes only.
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Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
how financial markets react to
changes in market conditions and
information.
Protecting and Insuring concepts of financial risk and loss
insurance (transfer of risk through
risk pooling)
managing risk
identity theft
life insurance products
how to protect oneself against
identity theft.
The Benefits of Financial Literacy
One's level of financial literacy affects one's quality of life significantly. It determines
one's ability to provide basic needs, attitude toward money and investment, as well as
one's contribution to the community. Financial literacy enables people to understand
and apply knowledge and skills to achieve a ifestyle that is financially balanced.
sustainable, ethical, and responsible.
Increased personal financial literacy affects one's financial behavior. These changes in
behavior pay dividends to society as well. People who work, spend. save, borrow,
invest, and manage risk wisely are less likely to require a government rescue. Financial
literacy does not totally eliminate the need for a social safety net because even the
most prudent individual can encounter financial difficulties. But taking responsibility for
one's financial life cultivates proper decision-making skills and discipline. Most of the
responsibility for managing financial matters rests with the individual. That
responsibility is easier for adults to bear when they have learned the basics of personal
finance in their youth.
This material has been prepared and communicated to you by or on behalf of
Palawan State University - CCRD Narra for educational purposes only.
DO NOT REPRODUCE OR COMMUNICATE.
Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
Financial Literacy in the Philippines
In his article "State of Financial Education in the Philippines." Go (2017) indicated
several findings of researches with regards to the state of financial literacy in the
country including the following:
World Bank study in 2014 estimated 20 million Filipinos saved but only half had
bank accounts.
not have a national strategy for financial education and literacy.
In 2016, Bangko Sentral ng Pilipinas (BSP) released the national strategy for
financial inclusion, stating that while institutions strive to broaden financial
services, financial literacy should also complement such initiatives.
As per Standard & Poor's (S&P) Ratings services survey last year, only 25% of
Filipinos are financially literate. This means that about 75 million Filipinos have
no idea about inflation, risk diversification, insurance, compound interest, and
bank savings.
Ten years after discovery of the stock market, still less than one percent of PH
population is invested in it.
• More than 80 percent of the working middle class have no formal financial plan.
Because of these findings, public and private sectors alike have recognized the need to
strengthen financial education in the country. Last November 27-28, 2018, more than
1,000 leaders, decision-makers, influencers, and representatives from public and private
institutions, civic society, and the academe gathered for the first ever Financial
Education Stakeholders Expo organized by BSP. The Expo is designed to build an
This material has been prepared and communicated to you by or on behalf of
Palawan State University - CCRD Narra for educational purposes only.
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Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
organized network of players that share the vision of a financially literate citizenry and
cohesively implement a variety of initiatives to achieve this vision. This is in line with
the BSP advocacy for financial education and supports the BSP mandates of maintaining
price stability, financial stability, and efficient payments system. It is the BSP's
conviction that a financially educated Filipino is an empowered Filipino who is able to
make wise financial decisions that positively impact personal financial circumstances,
and, consequently contribute to inclusive and sustained economic development.
The Expo supports Republic Act No. 10922 which designates second week of November
as Economic and Financial Literacy Week. It is also aligned. with the objectives of the
Philippine National Strategy for Financial Inclusion particularly the pillar on Financial
Education and Consumer Protection.
Developing Personal Financial Literacy
One's attitude about money is heavily influenced by the parents' attitude and behavior
about money. The attitudes you formed early in life probably affect how you save,
spend, and invest today. Do you behave similarly or differently from your parents about
handling money?
There are six major characteristic types in how people view money
(Incharge. 2017).
Frugal: Frugal people seek financial security by living below their means and saving
money. They rarely buy luxurious items: they save money instead. They save money
because they believe that money will offer protection from unprecedented events and
expenses.
Pleasure: Pleasure seekers use money to bring pleasure to themselves and to others.
They are more likely to spend than to save. They often live beyond their means and
spend more than they earn. If they are not careful and do not change. They may fall
into deep debt.
Status: Some people use money to express their social status. They like to purchase
and "show off" their branded items.
Indifference: Some people place very little importance on having money and would
rather grow their own food and craft their own clothes. It is as it having too much
money makes them nervous and uncomfortable.
This material has been prepared and communicated to you by or on behalf of
Palawan State University - CCRD Narra for educational purposes only.
DO NOT REPRODUCE OR COMMUNICATE.
Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
Powerful: Powerful people use money to express power or control over others.
Self-worth: People who spend money for self-worth value how much they accumulate
and tend to judge others based on the amount of money they have.
Which characteristic closely resembles your attitude about money?
Explain your answer.
Spending Patterns
Are you prudent or have you been accused of spending money lavishly? Or are you
somewhere in between? Individuals have different spending patterns. Before one can
come up with a financial improvement plan, one needs to analyze his/her spending
habits. There are two common spending patterns: habitual spending and impulsive
spending. Habitual spending occurs when one spends out of a habit, when one buys the
same item daily, weekly. or monthly. Daily items may include water, rice, and cup of
coffee. Week items may be grocery items. Monthly items are the electricity and Internet
bills. Impulsive spending occurs when one mindlessly purchases items that he or she
does not need. Many people are often enticed by monthly sales at the malls with the
attitude that they may lose the items the following day.
Fixed vs. Variable Expenses
Fixed expenses remain the same year-round. Car payment is an example. Variable
expenses occur regularly but the amount you pay varies. Electric and gas bills are
examples of these.
Which expenses are fixed and which are variable? Indicate the monthly total.
Put a check mark on the corresponding type.
Monthly total Fixed Variable
FOOD
CLOTHING
GAS
MEDICINE
INTERNET
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Palawan State University - CCRD Narra for educational purposes only.
DO NOT REPRODUCE OR COMMUNICATE.
Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
Needs vs. Wants
Financial discipline starts with an ability to recognize whether expenses are needs or
wants, and followed by ability to prioritize needs over wants. Needs are essential to our
survival. Wants are things that you would like to have but you can live without, such as
new clothes or a new cell phone model. You want them but do not necessarily need
them. Too many wants can ruin a budget.
Use the table below to list down all the expenses that belong to the needs
and those that belong to the wants.
NEEDS WANTS
Let Us Wrap Up
ENHANCE
Here are practical steps you can undertake to enhance your financial literacy.
Setting Financial Goals
Setting financial goals is the first step to managing one's financial life. Goals may be
short, medium, and long-term. Short-term goals can be measured in weeks and can
provide instant gratification and feedback. "I will ride on the LRT instead of taxi" and "I
will bring lunch every day" are examples of short-term goals. Medium-term goals should
be accomplished within one to six months. These goals provide opportunity for
reflection and feedback and require discipline and consistency. Long-term financial
goals can take years
This material has been prepared and communicated to you by or on behalf of
Palawan State University - CCRD Narra for educational purposes only.
DO NOT REPRODUCE OR COMMUNICATE.
Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
to achieve. These include saving money for a down payment on a home, o child's
college education, and retirement. They may also include paying off a car, student
loans, or credit card debt.
Developing a Spending Plan
Time and effort are necessary to build a sustainable spending plan. Three easy steps
are proposed below when developing your personal spending plan:
1. Record-Keep a record of what you spend.
2. Review-Analyze the information and decide what you do.
3. Take action-Do something about what you have written down.
Importance of Saving
Because no one can predict the future with certainty, we need to save money for
anything that might happen. Here are some reasons why saving is important:
Emergency Bolster - You should save money to avoid going to debt just to pay
emergency situations, like unexpected medical expenses and damages caused by
calamities or accidents.
Retirement - You will need savings/investments to take the place of income you will
no longer receive when you retire.
Future Events - You need to save for future events like weddings. birthdays,
anniversaries, and travels so as not to sacrifice your fixed expenses.
Instability of Social Security - Pensions from social security should only serve as
supplementary and not the primary source of income after retirement.
A Little Goes a Long Way - Small consistent savings go a long way.
This material has been prepared and communicated to you by or on behalf of
Palawan State University - CCRD Narra for educational purposes only.
DO NOT REPRODUCE OR COMMUNICATE.
Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
There are two ways to save:
save before you spend; and
save after you spend wisely.
In order to stick to the savings habit, you should:
1. commit to a month;
2. find an accountability partner:
3. find a savings role model who is successful with his/her money, through tried and
true savings:
4. write your goal down and track it; and 5. avoid tempting situations (don't go to the
mall to "hang out").
REFLECT
Financial literacy is the ability to use knowledge and skills to manage one's
financial resources effectively for lifetime financial security.
Financial literacy enables people to understand and apply knowledge and skills to
achieve a lifestyle that is financially balanced, sustainable,ethical, and
responsible.
One's attitude about money is heavily influenced by the parents' attitude and
behavior about money.
Standards for developing understanding of financial literacy include earning
income, buying goods and services, saving, using credit, financial investing,
protecting, and insuring.
This material has been prepared and communicated to you by or on behalf of
Palawan State University - CCRD Narra for educational purposes only.
DO NOT REPRODUCE OR COMMUNICATE.
Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
Let Us Assess
Instructions: Read the following questions and instructions carefully. Write
your answers on the space and table provided.
1. What is Financial literacy?(10 points)
2. Interview atleast 2 friends, classmates and relatives. Explore their financial
behavior or spending and saving behavior and present data using meme.(10
points)
3. How will you handle your personal money?(10 points)
References
Council for Economic Education. (2013). National standards for financial literacy.
Retrieved from https://www.councilforeconed.org
Go. V. (2017, August 21). State of financial education in the Philippines.
Retrieved from https://www.philstar.com/the-freeman/cebu-business/
2017/08/21/1731331/state-financial-education-philippines
Hastings, J.S.. Madrian, B.C., & Skimmyhorn, W.L. (2013). Financial literacy.
financial education, and economic outcomes. Annual Review of Economics, 5, 347-373.
Incharge Education Foundation. (2017). Incharge debt solutions. Retrieved from
https://www.incharge.org
Mandell, L. (2009). The financial literacy of young American Adults: Results of
the 2008 National JumpStart Coalition Survey of High School Seniors College Students,
Washington D.C.: The JumpStart Coalition for Personal Financial Literacy.
Maur, M. (2018, December). Financial literacy for Filipinos: Understanding for
better living. Retrieved from http://caraga.neda.gov.ph/financial-literac
for-filipinos-understanding-for-better-living/
This material has been prepared and communicated to you by or on behalf of
Palawan State University - CCRD Narra for educational purposes only.
DO NOT REPRODUCE OR COMMUNICATE.
Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
Bachelor of Elementary Education
1st Semester, AY 2022-2023
Photo/Image Attributions:
https://pixabay.com/photos/silver-money-philippines-rich-money-2262689/p 47
https://pixabay.com/photos/peso-money-currency-philippines-2169915/. p 47
https://pixabay.com/photos/financial-analytics-blur-business-2860753/. p 47
https://pixabay.com/photos/calculator-budget-math-pen-913162/, p 47
https://pixabay.com/photos/calculator-calculation-insurance-385506/. p 51
https://www.publicdomainpictures.net/en/view-image. php?
image=32920&picture-peso-bills, p 51
This material has been prepared and communicated to you by or on behalf of
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Prepared by; Kimberly Joyce Ardais PSU – CCRD Narra
