FINANCIAL LITERACY

Christine Joy N. Breguera BEED-

IV
 LEARNING OUTCOMES
1.Define financial literacy
2.Distinguish among financial plan, budgeting, saving,
spending, and investing
3.Prevent ways on how to avoid financial crises and scams
4.Demonstrate understanding of insurance and taxes
5.Describe a financial stable person
6.Determine ways on how to integrate financial literacy into
curriculum
7.Draw relevant lesson and significant values from personal
experiences on finacial crises and scams
8.Analyze research abstract on financial literacy and its
implications to the teaching learning process
9.Make a personal financial plan based on short term and long
 LESSON OUTLINE

• FINACIAL LITERACY • SAVINGS

• FINACIAL PLAN • INSURANCES AND TAXES
• BUDGET AND BUDGETING • FINACIAL STABILITY
• SPENDING • FINACIAL LITERACY INTO
• INVESTMENT AND THE CURRICULUM
INVESTING
Financial Literacy
Finacial literacy is a core life skill in an
increasingly complex world where people
need to take change of their own
finances, budget, financial choices,
managing risks, saving, credit and
finacial transactions.
Poor finacial literacies decisions can
have a long-lasting impact on
individuals, their families and the society
caused by lack of financial literacy.
 Financial Literacy

Finacial literacy is the ability to

make informed judgement and
make effective decisions
regarding the use and
management of money. Hence,
teaching finacial literacy yields
better finacial management skills.
 Finacial Literacy
The importance of starting finacial literacy while still young.
Finacial education is long term process and incorporating it
into the curricula from an early stage allows children to
acquire the knowledge and skills while building responsible
financial behavior throughout each stage of their education
(OECD, 2005).
Likewise, finacial literacy is the capability of a person to
handle his/her assets, especially cash more efficiently while
understanding how money works in the real world.
Finacial Plan

Finacial Plan is comprehend

statement of an individual’s long-term
objectives for security and well-being
and detailed savings and investing
strategy for achieving the objectives.
It begin with throughout evaluation of
the individual’s current financial state
and future expectations.
Financial Plan Steps:

1.Calculating net worth

2.Determining cash flow
3.Considering the
priorities
 Financial Improvement
Strategies
Finacial literacy shapes the way people view and
handle money.

1.Identify your starting point

2.Set your priorities
3.Document your spending
4.Lay down your debt
5.Secure your finacial future
 Financial Goal Planning and
Setting
Setting goals is a very important part of life,
especially in financial planning. Before investing
the money, consider setting personal financial
goals. Financial goals are targets, you will driven
by specific future finacial needs, and such as
saving for comfortable retirement, sending
children to college, or in enabling a home
purchase.
 Three key areas in setting investment goals:

A. Time Horizon
B. Risk Tolerance
C. Liquidity Needs
 Financial Goal Planning and
Setting
D. Investment goals. Growth, Income and Stability

Once determined that finacial goals and how time

horizon, risk, tolerance, and liquidity needs affect
them, it is time to think about how investments may
help achieve these goals. When considering any
investment think about what it offers in terms of
three key investment goals.
 Budget and
Budgeting
A budget is an estimation of revenue and
expenses over a specified future period of
time and is usually complied amd re
evaluated on a periodic basis. Budgeting, on
the other hand, is the process of creating a
plan to spend money . Creating this spending
plan allows one to determine in advance
whether he/she will have enough money to do
things he/she needs or like to do.
 Steps to Good Budgeting
Step 1: Set realistic goals
Step 2: Identify income and expenses
Step 3: Separate needs from wants
Step 4: Design your budget
Step 5: Put your plan into action
Step 6: Plan for seasonal expenses
Step 7: Look ahead
Spending

If budget serve as a finacial wish list,

spending plan is way to make those
wishes reality. Turn them into an
action plan. The following are
practical strategies and prioritizing
budget goals and spending plan.
 Strategies in
Spending
1.Start by listing to your goals.
2.Divide your goals according to how long it will take to
meet each goal.
3.Estimate the cost of each goal and find out how much is
costs.
4.Project future cost.
5.Calculate how much you need to set aside each period.
6.Priotize your goals.
7.Create a schedule for meeting your goals.
Investment and Investing

As teachers, when you have saved

more money that what you expect at
the time you need , consider
envesting this money to earn more
interest than what savings account is
paying you.
 Four ways investing your money:

1.How long will you invest the money? (Time Horizon)

2.How much money do you expect your investment to earn
each year? (Expectation of Return)
3.How much of your investment are you willing to lose in
the short-term in order to earn more in the long-term.
(Risk Tolerance)
4.What types of investment interest you? (Investment
Type)
 Savings
In order to get out of debt. It is important to
some money aside and put it into a savings
account on a regular basis. Savings will also
help in buying things that are needed or
wanted without borrowing.
Emergency Savings Fund. Start as early,
setting aside a little money for emergency
savings fund. If you receive bonus from work,
an income tax refund or earnings from
additional or side jobs, use them ad an
emergency fund.
 10 Reasons Why Save
1.To become financially Money
independent .
2.To save on everything you buy.
3.To buy a home or a car.
4.To prepare for the future
5.To get out if debt.
6.To augment annual expenses.
7.To settle unforseen expenses.
8.To respond to emergencies.
9.To mitigate losing your job or getting hurt.
10.To have a good life.
 Common Financial Scams to
Avoid
A.Phishing
B.Social Media Scams
C.Phone Scams
D.Stolen Credit Card Numbers
E.Identify Theft
 10 Tips to avoid Finacial
Scams
1. Never wire money to a stranger
2. Don’t give out finacial information
3. Never clinks on hyperlinks in emails
4. Use difficult password
5. Never give your social security number
6. Install Antivirus and Spyware protection
7. Don’t shop with unfamiliar online resellers
8. Don’t download software from pop-up windows
9. Make sure the website you visit are safe
10.Donate to known charities only
 Finacial Scams among
students
A.Fake scholarships
B.Diploma Mills
C.Online book scams
D.Credit card scams
Insurances and Taxes
Insurance is a contract (in the form of policy)
between the policyholder and the insurance
company, whereby the company agress to
compensate for any financial loss from
specific insured events.
There are various types of insurance to
choose from, such as life business insurance,
health insurance, motor insurance, property
insurance, business insurance, etc.
Concept in Insurance and Taxes

1.Imployer- Sponsored Insurance. If working in a

company with 50 or more full-time employees, the
employer is required employee only insurance that
meets minimum guidelines.
2.Marketplace Plans. Marketplace plans are available
based on an area of residence and income upon
meeting minimum coverage requirements.
 Life Insurance
Life insurance is a type of insurance that compensates
beneficiaries upon the death of policyholder. The
company will guarantee a payout for the beneficiary in
exchange of premiums. This compensation is called
“death benefit”
The following are common risk categories:
1.Preferred Plus
2.Preferred
3.Standard Plus
4.Standard
5.Substandard
6.Smokers
 Benefits of Life Insurance

1.It pays for medical and funeral costs.

2.For finacial support.
3.For funding various financial goal.
4.Acts as retirement secured conform.
5.It covers costs incurred form taxes and debt.
Finacial Stability

Like anyone else, teachers also aim to

become financially stable it not today,
maybe in the future. Being financially
stable means confidence with the finacial
situation, worriless paying bills because of
available funds, debt-free, money savings
for future goals and enough emergency
funds.
Strategies in Reaching Finacial Stability
1.Make savings automagical
2.Control your impulsive spending
3.Evaluate your expenses and live frugally
4.Invest in your future
5.Keep your family secure
6.Eliminate and avoid debt.
7.Use the envelope system
8.Pay bills immediately
9.Read about personal finances
10.Look to grow your net worth
 Signs of being Financially Stable
Rose (2019) presents some signs of a financially stable
person.
1.You never overdraw your checking account.
2.You don’t lose sleep over finances.
3.You use your credit card for convenience and rewards but
never out of necessity.
4.You don’t worry about losing your job.
5.You pay your bills ahead of time.
6.People ask your opinion about finacial matters and you
inspire them.
7.You generally happy with your financial situation.
8.Your finace your cars over five years or less if you take
 Signs of being Financially Stable
10. You don’t feel guilty when you’re out for special
occasions.
11. You can afford to buy the things you really want.
12. Recreational spending doesn’t appeal you.
13. You’re a natural saver.
14. You’re generous with money when it comes to
charities or helping others.
15. You’re confident about your future.
16. Your net worth grows significantly from year to year.
17. You have substantial equity in your home.
18. You consistently live beneath your means.
19. You could survive for months without paycheck.
Integrating Financial Literacy into the Curriculum

Finacial education in schools should be part of a

collaborative national strategy to ensure relevance ang
long-term sustainability. The education system should
be involved in the development of the strategy.

In support, Barry (2013) underscored the financial

literacy has a wide repercussions outside the family
circle and more precisely, the school. Hence,
administrators and professors need to develop a
curriculum that would provide students insights on
having the value of financial literacy including the effect
it can bring them.
Integrating Financial Literacy into the Curriculum

Finacial education should ideally be a core part of the

school curriculum. It can be integrated into other
subjects like mathematics, economics, social studies,
technology and home economics, values education and
others. Financial Education can give a range of real life
contacts across a range of subjects.

Teacher should be adiquately trained and resourced,

made aware of the importance of financial literacy and
relevant pedagogical methods and they should receive
continuous support to teach or integrate in their lesson.
THANK YOU!