Finanacial Literacy

8/8/2019 Finanacial Literacy

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Financial

Literacy


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Objectives:

Identify the current financial situation and thereasons why they are at the current state;

Make family budget, set goals and financial plan

to enable them achieve their goals for migration; Understand the various savings and investment

instruments that they can avail of;

Translate their financial and family goals into

concrete savings and investment program; and Understand when to borrow and the borrowing

cost.


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Understanding Concepts on

Savings


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It is not the money

you make but it ishow much

money you save


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Concepts on Savings

Save to preserve for futureuse;

-- to treat or use carefullyin order to preserve;

-- to keep

Saving is not the opposite of

spending. It simply means keepingyour money to spend it in the

future.


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Invest to put (money) into business,real estate, stocks, bonds, etc.for the purpose of earning an

income or profit

Saving is not enough; you have to makeyour money grow by investing it

properly. There are too many cases ofpeople who are good at saving but who

still lose alltheir savings because ofbad

investments.


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Insure to contract to bepaid money in case ofaccidents, loss of life,

property, etc.

Even if you dont have the

savings, your insurance will give

your loved ones the money they

need.


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Therefore,

Saving is not an end in itself.

One must learn to Save ANDInvest AND Insure oneself.

However, you must first learn

to savebefore you can investor pay for insurance.


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Nobody

plans to

fail

Some Just

Fail to Plan


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What are the things that

people need to plan for?

House and Lot

Childrens Education

Capital for Business

Sickness, Accidentand Disability

Unemployment

Retirement / Old Age


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Important Concepts in

Successful Saving

Save Before You Spend.

Recognize your needsversus your wants.

Write your budget and

life goals and stick to your

financial plan.


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Where Does

Your Salary Go?


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The Money

Trees

INCOME

Save

SSS/Pag-ibig

Investment

HousingInsurance

Life

Spend

Food

Transportation

Clothing

Leisure

Shelter

EXPENSES

Education

Retirement

Cash (10%)

ASSETS


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BUDGE

TING


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BUDGE

TSalary

Food

Housing

Transportation

Clothing

Education

HealthLeisure

EXPENSES

SAVINGS


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More Tips- from money.cnn.com

If youre not saving 10% of your salary,youre not saving enough!

The fastest way to the minimum target is toput your 13th month pay in a mutualfund/UITF IMMEDIATELY!

Save the amount using various instruments

before spending money. It is important for members of the family in

the Philippines to contribute and save fortheir family goals and insurance


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MORE TIPS ON

BUDGETING

Tracking of expense is important that you always haveto carry a pen and paper to write all the things to buy andmark each everytime you buy it.

Comparing yourIncome

as against your

Expensewould help you identify if you haveenough money for spending.


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GOALS OFBUDGET

B- Boundaries

U- Unwanted Stress and Pressures

D- Debt Free

G- Generate More and Give

E- Eradicate Impulsive Buying

T- Trust God

Finanacial Literacy

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