COURSEPACK STRUCTURE

Module 5
Financial Literacy

Module Learning Outcomes

At the end of the module, the students are able to:
discuss the theoretical underpinnings of financial literacy
identify the fundamental concepts of financial literacy
evaluate financial literacy in day-to-day setting
evaluate financial literacy in 21st century education
cite the importance of financial literacy across different learning areas in 21 st
century
apply financial literacy in designing teaching and learning activities (TLAs)
across different learning areas
Module Lessons
Lesson 1: Financial planning/Goal Setting and Valuing
Lesson 2: Budgeting, spending, and investing
Lesson 3: Integration of Financial Literacy Across the Curriculum
 MODULE 5: FINANCIAL LITERACY

MODULE OVERVIEW
Welcome to Module 4! This module deals with financial literacy. As we all know,
financial literacy is one of the essential 21st century skills. Despite the fast changing times,
it is important to equip teachers and students on dealing with things and challenges on
the financial aspect. This module consists of three lessons that you can apply as you go
along in your teaching-learning journey. Good luck!

MODULE LEARNING OUTCOMES

At the end of the module, you should be able to:

✔ discuss the theoretical underpinnings of financial literacy

✔ identify the fundamental concepts of financial literacy

✔ evaluate financial literacy in day-to-day setting

✔ evaluate financial literacy in 21st century education

✔ cite the importance of financial literacy across different learning areas in 21st
century

✔ apply financial literacy in designing teaching and learning activities.

LESSONS IN THE MODULE

✔ Lesson 1: Financial planning/Goal Setting and Valuing

✔ Lesson 2: Budgeting, spending, and investing

✔ Lesson 3: Integration of Financial Literacy Across the Curriculum

 LESSON 1: FINANCIAL PLANNING/GOAL SETTING AND VALUING

INTENDED LEARNING OUTCOMES

At the end of the lesson, you should be able to:

✔ gain understanding on the different concepts in financial planning, goal setting,

and valuing that they can utilize in their daily lives;

✔ create a financial roadmap leading to financial freedom; and

✔ apply the different concepts of financial planning in their daily lives.

TIME FRAME: 1-2 hours

INTRODUCTION
Several years from now, you all desire to make your dreams come true. Achieving
your dream house, owning several properties, establishing a business, and other dreams
you want to achieve in the future are examples. These dreams you want to achieve would
be impossible without planning your finances.
Come and see the concepts in financial planning. Let’s start!

ACTIVITY
Right now, you are given the opportunity to share your financial status in the future.
What assets or financial resources do you want to have ten (10) years from now? Give
yourself a few minutes to gather your thoughts and after such, write those things on the
graphic organizer below. You can add as many bubbles as you want.
 My Financial Goal Ten (10) years from
now

ANALYSIS
Great! You are now done with the activity phase. Based on the things you wrote,
ponder on the financial resources or assets you wanted to have in the future and answer
the following questions:

1. What financial asset or resource do you want to have first? How will you work on
your first target financial resource in order to earn it?
2. What financial assets or resources do you find the most challenging to have in the
future? Why?
3. Granting that you have a stable job or a business in the future, you still cannot deny
the reality that you will have limited financial resources. With the big challenge you
currently face, how will you achieve all of your goals written on the graphic organizer?
Make your answer as practical as possible.

ABSTRACTION
Attaining the different financial goals in the future is indeed a challenging one. In
different parts of the world, most students in higher education systems are really stressed
in terms of financial aspect (Bernardo & Resurreccion, 2018). In the college-age
population, 37.58% of the people mentioned that the main reason why they do not usually
enroll themselves to college or university is because of the cost of higher education.
Moreover, the majority of the data says that having additional means of earning money
to support schooling does not stop them from attaining their dreams (Reyes et. al., 2015).

With financial literacy, schools are now motivating their students to maintain their
well-being and acquire their positive resources that will help them in dealing with their
present financial challenges. Scholarships, student assistance programs, and other
interventions done by several schools are usually conducted to encourage students in
continuing their education and achieve their dreams. Consequently, the financial
strategies that the students usually do in the present times are carried out as they go
along in their respective journeys. This can be carried through obtaining a stable job,
establishing a business, and additional means of earning money in the world of work
(Bernardo & Resurreccion, 2018).

With these things, it is highly possible for you to obtain your financial goals if you
start with yourself. Do take note that everything starts with discipline and motivation. That
is why an activity earlier was conducted in order for you to have a roadmap to financial
freedom. Stay tuned because as you go further in the future lessons, you will be equipped
with achieving financial stability to be able to teach your future students to be financially
literate.

Financial literacy refers to the ability to “use knowledge and skills to manage one’s
financial resources effectively for lifetime financial security” (Mandell, 2009). It is highly
composed of two elements: understanding and use. When people understand utilizing
ways to manage their own finances, such as the knowledge of financial products,
knowledge of financial concepts, possessing the mathematical skills in financial
decisions, and engaging in financial planning, they are able to apply those strategies in
managing their money (Huston, 2010, as cited in Maur, n.d.). Establishing a plan,
accumulating more wealth, having a less credit card debt, and mitigation of engaging in
high-cost borrowing methods are examples (Maur, n.d.).

Investing in financial education really creates a huge impact to the students,

especially that it teaches you to be responsible and instills the value of discipline needed
to keep track of your financial goals. This involves setting your short-term, medium-term,
and long-term goals. Short-term goals include the payment of your monthly living
expenses, basic needs, and emergency fund. Achieving goals that are attainable within
five (5) years such as buying a house or car are examples of medium term-goals. Lastly,
long-term goals are those that take longer than five years to achieve.

As Maur (n.d.) asserts that in addressing the growing demand for more
investments in the Philippines, most financial industries recommend Filipinos to save first
and then spend whatever is left after setting aside the savings.

APPLICATION
For effective application of your learning in this module, make short-term, medium-
term, and long-term financial goals. Make sure that your financial plan is SMART
(Specific, Measurable, Attainable, Results-oriented, and Time-bounded) and discipline-
oriented. Rubric for scoring is as follows

Excellent 25-20 pts.

Good 19-15 pts.
Fair 14-6 pts.
 Needs Improvement 5-1 pt.

Short-term financial goals

 Medium-term financial
goals

Long term financial goals

CLOSURE
Congratulations! I hope that you will walk your talk after accomplishing this lesson.
You can now proceed to the next lesson.
 LESSON 2: BUDGETING, SPENDING, AND INVESTING

INTENDED LEARNING OUTCOMES

At the end of the lesson, you should be able to:

✔ define budgeting spending, and investing;

✔ determine the fundamental concepts of budgeting, spending, and investing;

and

✔ apply the basic concepts by creating a budgeting and investment plan.

TIME FRAME: 2 days

INTRODUCTION
Budgeting and spending issues are commonly heard from people. Some students
say that their daily allowance is vanished by the fare. But little did their parents know, they
spent most of their daily allowance on food items sold outside the school. Some working
individuals say that their monthly salary is immediately vanished by payment due dates,
but some people fail to pay those because there is a midnight sale at the mall..
Are you ready? If not yet, give yourself a minute to breathe and get started.

ACTIVITY
 In this activity, there are no right or wrong answers. What you need to do is
interview at least five (5) people- three (3) from the working individuals, one (1) from your
classmates/friends who’s still attending school, and one (1) from yourself. While
interviewing them, be reminded of the guide questions:

1. How do you budget your monthly salary (for working individuals) or daily
allowance (from your classmate/friend, and yourself)?
2. In budgeting your money, what do you usually spend first and what do you
spend later on?
3. If given a chance to invest at least one thing (may it be a small material thing
or a big one), what would it be? Why?

ANALYSIS
I hope that you have already gathered all of the answers.

Pondering all of the ideas, kindly answer the following questions:

1. Among the five answers you have gathered, who made the best strategy in
budgeting their monthly salary/daily allowance? Why did you say so?
2. Based on the answers you have gathered, what is usually prioritized first in
spending? Do you think it was their “need” or their “want”??
3. Based on the answers you have gathered, what do they usually want to invest
first? Do you think it is a small material or a big one?

ABSTRACTION
Money mobilizes the world. Everyone purchases products and services that are
highly available in the market. Adults earn money by making products or performing
services. Kids receive allowances. Everything is earned and bought by money. As others
say, “you need to work hard in order to earn money for a living.”
Due to increasing demand of basic needs and status of living, many people are
tested whether to prioritize their needs or their wants. Some want to prioritize their basic
needs for daily survival, but some want to “go with the trend” by buying expensive clothes,
accessories, and other things that will satisfy their desires.

For people in the early adulthood stage- specifically for college students who are
given independence in terms of living and the opportunity to budget their own allowances,
they commonly encounter challenges especially on managing their finances.

Shahrabani (2012) asserted that the intention to budget among college students
is affected by past debt frequency; thus, calling for the improvement of financial literacy
and changing attitudes that will lead to effective financial management that can increase
intentions in terms of budgeting. In addition, changes in budgeting requires additional
knowledge about money management. Consequently, this will motivate students to avoid
and solve financial problems in the future. This will also motivate the students to create a
financial plan as they will go along on their respective milestones.
Maintaining a budget reduces feelings of anxiety and stress brought by consequences of
financial debt.

Budgeting is a process that puts you in control of your money. This shows how
much money you currently have and where will it go to meet your needs and wants. This
will also pave the way for attaining your financial plan.

Budgeting is a challenging thing in managing your finances as this is crucial in

making your financial plans within the reach. Vohwinkle (2012) cited in Gitman (2013)
emphasizes tips on budgeting:

1. Gather every receipt you have. This includes your grocery receipt, utility
bills, school contribution expenses, and other transactions you made with
receipt.
2. Record all of your sources of income/allowance. If you receive your monthly
allowance or your salary from a part-time job, list it down as a monthly
amount.
3. Create a list of usual monthly expenses. This includes grocery purchase,
school expenses, and other expenses you usually encounter. Make sure
that you include your savings in your expense allocation.
4. Make adjustments to expenses if necessary. The target in this tip is to make
your monthly allowance and monthly expenses equal. If your expenses are
greater than your monthly monetary source, adjust your expenses.
5. Review your budget monthly. It is really important to review your budget
regularly in order to make sure you know how things are going.

After allocating a saving fund every month for your monthly allowance, you can
start investing something. When we talk about investment, this emphasizes the act to
start a project. With investment, you can start a small project. This can be in a form of
selling small food items or buying a printer and then offer a service where you can print a
certain document for a reasonable price. In this way, the capital you have invested in your
small project prospers into a bigger one, and this helps you to further achieve your
financial goals.

APPLICATION
Answer the following questions:

1. Oenone is a 3rd year college student and works as a part-time tutor and freelance
content writer. The net monthly income from her first job is Php 2000. The
approximate income from her second job is 3000.
 Her planned fixed monthly expenses include:
● Php 1600 for rent
● Php 1000 for school project allowance

Her planned flexible expenses include:

● Php 1000 for food
● Php 500 for fare
● Php 500 for emergency fund
● Php 400 for personal items

How her month actually went

1. What she made:

● Oenone earned Php 2000 from her job as part-time tutor
● Oenone didn’t get her target income for freelance writing. She only got Php
1500
● Oenone got an extra profit in reselling lip tints and umbrellas endorsed by
Kristine, her close friend. She got a net income of 1000

2. What she spent on fixed, regular expenses:

● She paid Php 1600 for the rent
● Her school project allowance unexpectedly went to Php 1500 due to
numerous projects in her specialization subjects

3. What her flexible expenses actually were:

● Php 500 for food
● Php 500 for fare

4. Oenone’s unexpected expenses

● She went on a movie and food trip with her friends. She spent Php 400

a. What is the difference between Oenone’s planned expenses and her actual
expenses?
b. In what areas did she overspend?
c. In what areas did she spend less than she planned?
d. How much money did she have at the end of the month to put into savings?
e. If it were your budget, what did you change about the budget?
f. If it were your budget, how much would you save each month to put toward your
financial and personal goals?
*Adapted from https://www.practicalmoneyskills.com/assets/pdfs/lessons/lev_4/L4Activities1.pdf

2. Each month, Honey and Josh have hour-long discussions about their household
spending. They do not understand why they are continually short of money even
though they both have good salaries. What actions might be taken to avoid personal
and financial difficulties?
CLOSURE
Thank you for exerting your efforts in further establishing your discipline in terms
of budgeting and spending. We hope that you learn so many things in this lesson. You
can now proceed to the next lesson.
 LESSON 3: INTEGRATION OF FINANCIAL LITERACY
ACROSS THE CURRICULUM

INTENDED LEARNING OUTCOMES

After the lesson, you should be able to:
✔ understand different concepts on the importance of integrating financial
literacy across the curriculum
✔ identify several teaching strategies and technological tools that will enhance
the financial literacy of students
✔ make a series of activities on integrating financial literacy in day-to-day
classroom activities
✔ apply your daily financial activities on building financial literacy across the
curriculum
TIME FRAME: 2 days
INTRODUCTION
Integrating financial literacy for students is an imperative. As an agent of
socialization, schools are one of the instruments in enhancing the financial literacy of the
students. As Havighurst (cited in Corpuz et. al., 2018) emphasizes, students who belong
in the middle childhood until the early adulthood stage face a huge responsibility in
managing their finances; thus, calling for several schools to integrate financial literacy in
their respective curricula.
ACTIVITY
 Imagine yourself in the stages when you were still a kid, a high school student, and
your current age. Write in column 2 what things you would prioritize if you are given Php
5000. You can make several details as possible
Column 1 Column 2

Childhood
(Elementary)

Adolescent
(High School)

Early Adult
(College)

ANALYSIS
With the information gathered in the activity earlier:

1. What would be the best age for you to have an idea in handling your money
properly? Why do you say so?
2. How will you incorporate those experiences in educating your students to be
wise in terms of their finances?

ABSTRACTION
Prior financial experience enhances teachers to incorporate financial discipline to
their students. As Kaiser & Menkhoff (2017) emphasizes, integrating financing in
education creates a huge impact in financial behavior of students and will develop their
financial literacy. Up to this time, financial literacy is called to be one of the imperatives in
the teaching-learning process, as this is highly crucial in the daily living of the students as
they go ahead in their respective milestones in life. As financial literacy becomes a basic
life skill, Meszaris and Suiter (2017) calls for parents and teachers to establish a strong
home/school relations to their students in order to enhance the financial literacy of their
children.
 For elementary education, it is indeed a challenging thing especially when financial
literacy is integrated into the curriculum. Henning & Lucey (2017) suggests that faculty
collaboration in integrating financial literacy in learning simulates students in the real-
world. Encouraging students to drop a single coin in a day or in a week will entice students
to save. In establishing closer relations with their parents, this will foster a great
collaboration as it helps students to utilize financial strategies in saving and use financial
decisions on how they are going to spend their savings. Motivating parents to enroll their
children into a bank savings account is a plus point.

Most students in secondary education are considering financial choices in their

daily lives. Enhancing their personal independence, especially on making financial
decisions, high school students are trained with basic financial skills such as
mathematical and numeracy skills in budgeting, and financial literacy where the students
are trained with critical thinking skills, especially on considering financial decisions and
prioritizing their needs and wants (Erner et.al., 2016).

For incorporating financial literacy to young adults with special needs, Henning &
Johnston-Rodriquez (2018) recommends to facilitate materials that are culturally-
responsive, accurate, and relevant. Individualized approaches must be facilitated and
make sure that the materials meet the needs of the students considering their current
economic and sociocultural factors.

With the technological advent, there are many technological tools that are available
and accessible for students and teachers in facilitating financial literacy. Several
examples are given below:

1. iAllowance- this application helps parents to give frequent reminders to their kids
in getting their chores done before giving their allowance.
2. Bankaroo- this mobile app motivates students ages 5-14 years old in setting their
financial goals, saving money, using basic accounting skills, and ways of budgeting their
money.
3. PiggyBot- kids ages 6-8 years old can learn goal setting, saving, and virtual
banking. This mobile app lets children upload photos and review transaction records

Moreover, Page (2014) indicates four lesson principles in preparing lessons that
enhances the financial literacy of the students:

1. Relevance. Making sure that the students see the financial world through the
lesson you made is vital in the crucial development of students in their daily survival.
Saving strategies, goal-setting activities, comparison-shopping techniques, concepts in
compound interest, and behavioral finance strategies are opportunities you can offer to
the students. In this way, students are given the skill in making better financial decisions
and managing their own money.
2. Integration. Introducing financial concepts that the students can actually use
throughout their lives are useful. Giving them numerous opportunities in saving money,
doing saving challenges, encouraging students to use expenses and budget tracker
mobile applications, and other ways can enhance the financial literacy of the students.
3. Critical Thinking Skills. Giving students the opportunity to use their critical thinking
skills in making financial decisions, such as prioritizing their needs and wants will help
them utilize empowered financial strategies that they can carry throughout their lives.
4. Improvements of Knowledge, Behavior, and Attitudes. As a teacher, always
motivate your students to put their learning into action. Encourage your students to use
financial tools that they can access. Encouraging students to use spreadsheets, financial
ledgers, and other technological tools that will let them keep a track on their expenses will
improve their lives in terms of financial literacy.

With the enormous opportunities in encouraging your students to build their

financial literacy, it is important to entice your students in applying basic financial concepts
that are highly applicable in their daily lives. With different simulations and activities that
will enhance their financial literacy, this will incorporate discipline and motivation in letting
the students achieve their financial goals. As an essential 21st century skill, this will
prepare students to attain their financial goals in a short-term, medium-term, and long-
term basis.

APPLICATION
In the situations provided below, create a list or series of proposal activities that
you will conduct for the students. Make sure that every proposed activity or situation is
SMART.

1. Define and give examples of objects that satisfy people’s wants and services.

Objectives List of Activities (with time Assessment Tool

frame)

2. Diagram the relationship among a final good or service, the way it’s produced,
and who consumes and produces it.

Objectives List of Activities (with Assessment Tool

time frame)
 3. Explain scarcity and how not all wants for goods and services can be satisfied.

Objectives List of Activities (with Assessment Tool

time frame)

*Adapted from (https://www.edutopia.org/practice/piggy-bank-friday-life-skills-through-

financial-literacy)

CLOSURE
I highly congratulate you for the enormous efforts you have exerted throughout the
module. Equipped with financial literacy, it is assured that you can integrate and build this
in your teaching-learning journey.

MODULE ASSESSMENT
1. Which of the following refers to the ability to use knowledge and skills to make
informed money management decisions?
A. Financial knowledge
B. Financial literacy
C. Financial plan
D. Financial aspect

2. Which of the following is NOT an indicator that a person is financially-literate?

 A. Anna makes sure that she has less credit card debt
B. Shannon invests in stocks
C. Raul makes sure that his house loan is fully paid
D. Thayer is living and spending above his means

3. Which of the following is made up of financial literacy?

I. Use of finances
II. Understanding the use of finances
III. None of these

A. I only
B. II only
C. I and II
D. I, II, and III

4. What type of goal is usually achieved within a year?

A. Short-term goal
B. Medium-term goal
C. Long-term goal
D. None of these

5. A spending plan is another name for a budget.

A. True
B. False

MODULE SUMMARY
● Financial literacy refers to the ability to use knowledge and skills in managing one’s
financial resources
● Knowledge of financial products, financial concepts, numeracy and mathematical
skills, and engaging in financial planning activities refer to financial literacy
● Financial education is one of the best tools in attaining better financial outcomes
● Developing financial education in the Philippines is an imperative. Enticing people
to save and invest enhances their financial decisions on spending and utilizing
financial decisions.
REFERENCES
Bernardo, A. B., & Resurreccion, K. F. (2018). Financial stress and well-being of Filipino
students: The moderating role of external locus-of-hope. Philippine Journal of
Psychology, 51(1), 33-61
.
Mandell, Lewis. The Financial Literacy of Young American Adults. Results of the 2008
National Jumpstart Coalition Survey of High School Seniors and College Students.
Jumpstart Coalition; Washington D.C.: 2009.
Maur, M. A. (n.d.). Financial literacy for Filipinos: Understanding for better living: National
Economic and Development Authority-Caraga. Retrieved July 17, 2020, from
http://nro13.neda.gov.ph/financial-literacy-for-filipinos-understanding-for-better-living/

Reyes, C., Tabuga, A., Asis, R., & Mondez, M. B. (2014). Child poverty in the Philippines.
Philippine Institute for Development Studies Discussion Paper Series, (2014-33).

The Impact of Financial Education. (2016, April 26). Retrieved July 17, 2020, from
https://www.stlouisfed.org/on-the-economy/2015/march/the-impact-of-financial-
education
MODULE ASSESSMENT (After the students have read and studied all the lessons in the
module, it is at the institutional level to decide whether to administer assessment in any
forms. This part allows flexibility within the institution.)
1. Which of the following refers to the process of creating a plan in allocating funds
on where to spend your money?
A. Spending
B. Budgeting
C. Financing
D. Projecting

2. What financial term refers to the one that is owned?

A. Asset
B. Equity
C. Liability
D. Savings

3. What financial term refers to the one that is owed?

A. Asset
B. Equity
C. Liability
D. Savings

4. What refers to the action of putting money into something for profit or material
result?
A. Spending
B. Collaborating
C. Budgeting
D. Investment

5. What refers to the action of purchasing products or services?

A. Spending
B. Collaborating
C. Budgeting
D. Investment

MODULE SUMMARY
● Budgeting refers to the process that puts you in control of your money
● It is indeed an imperative to keep track of your monthly financial records every
time you spend.
● At the end of the month, make sure to compare your planned and actual
expenses
● Allocate an emergency fund every month to give way for expenses that are
beyond our control
REFERENCES
Shahrabani, S. (2012). The effect of financial literacy and emotions on intent to control
personal budget: A study among Israeli college students. International Journal of
Economics and Finance, 4(9), 156-163.

Vohwinkle, J. (2020, May 25). Your 6-Step Guide to Making a Personal Budget.
Retrieved July 17, 2020, from https://www.thebalance.com/how-to-make-a-budget-
1289587
MODULE ASSESSMENT
The application phase already serves as the assessment. Rubric for scoring are as
follows
Excellent 25-20 pts.
Good 19-15 pts.
Fair 14-6 pts.
Needs Improvement 5-1 pt.

MODULE SUMMARY
● Incorporating financial literacy in the curriculum is an imperative as this is essential
in 21st century learning.
● There are many teaching strategies of integrating financial literacy in the teaching-
learning process.
● Technological tools in enhancing the financial literacy of students can be
introduced for them to exercise further accountability and responsibility in
managing their own finances
 ● Relevance, integration, critical thinking skills, and improvements of knowledge,
behavior, and attitudes must be considered in introducing lessons that will enhance
the financial literacy of students.
● In enhancing the financial literacy of students, encourage them to establish their
own short-term, medium-term, and long-term financial goals.

REFERENCES
Erner, C., Goedde-Menke, M., & Oberste, M. (2016). Financial literacy of high school
students: Evidence from Germany. The Journal of Economic Education, 47(2), 95–105.
doi:10.1080/00220485.2016.1146102

Henning, M. B., & Johnston-Rodriguez, S. (2018). Evaluating financial literacy

curriculum for young adults with special needs: A review of content, universal design for
learning, and culturally responsive curriculum principles. Citizenship, Social and
Economics Education, 17(2), 118–135. doi:10.1177/2047173418789593

Henning, M. B., & Lucey, T. A. (2017). Elementary Preservice Teachers’ and Teacher
Educators’ Perceptions of Financial Literacy Education. The Social Studies, 108(4),
163–173. doi:10.1080/00377996.2017.1343792

Kaiser, T., & Menkhoff, L. (2017). Does financial education impact financial literacy and
financial behavior, and if so, when?. The World Bank.

Lynch, M. (2018, June 28). Apps and Tools to Teach Students Financial Literacy.
Retrieved July 18, 2020, from https://www.thetechedvocate.org/apps-and-tools-to-
teach-students-financial-literacy/

Page, B. (2014, March 31). Financial Literacy in High School: Necessary and Relevant.
Retrieved July 18, 2020, from https://www.edutopia.org/blog/high-school-financial-
literacy-resources-brian-page

Person. (2016, February 16). Financial Literacy From Age 5 On. Retrieved July 20,
2020, from https://www.edutopia.org/practice/piggy-bank-friday-life-skills-through-
financial-literacy