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    Financial Literacy

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    Lester Acupido
    Financial literacy involves making informed financial judgments and decisions about managing money. It is important to start developing financial literacy at a young age. Creating a financial plan involves calculating one's net worth, determining cash flow, considering priorities like retirement and risk management, and developing long-term investment strategies. Budgeting is key and involves setting realistic goals, identifying income and expenses, separating needs from wants, and planning for seasonal costs. It is also important to save money for emergencies and future goals while avoiding common financial scams like phishing, identity theft, and fraudulent scholarships. Insurance provides protection from financial losses, and developing strategies like paying bills on time, eliminating debt, and growing one's net worth can help achieve financial stability.

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    Financial Literacy

    Uploaded by

    Lester Acupido
    102 views4 pages
    Financial literacy involves making informed financial judgments and decisions about managing money. It is important to start developing financial literacy at a young age. Creating a financial plan involves calculating one's net worth, determining cash flow, considering priorities like retirement and risk management, and developing long-term investment strategies. Budgeting is key and involves setting realistic goals, identifying income and expenses, separating needs from wants, and planning for seasonal costs. It is also important to save money for emergencies and future goals while avoiding common financial scams like phishing, identity theft, and fraudulent scholarships. Insurance provides protection from financial losses, and developing strategies like paying bills on time, eliminating debt, and growing one's net worth can help achieve financial stability.

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    Financial literacy involves making informed financial judgments and decisions about managing money. It is important to start developing financial literacy at a young age. Creating a financial plan involves calculating one's net worth, determining cash flow, considering priorities like retirement and risk management, and developing long-term investment strategies. Budgeting is key and involves setting realistic goals, identifying income and expenses, separating needs from wants, and planning for seasonal costs. It is also important to save money for emergencies and future goals while avoiding common financial scams like phishing, identity theft, and fraudulent scholarships. Insurance provides protection from financial losses, and developing strategies like paying bills on time, eliminating debt, and growing one's net worth can help achieve financial stability.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    102 views4 pages

    Financial Literacy

    Uploaded by

    Lester Acupido
    Financial literacy involves making informed financial judgments and decisions about managing money. It is important to start developing financial literacy at a young age. Creating a financial plan involves calculating one's net worth, determining cash flow, considering priorities like retirement and risk management, and developing long-term investment strategies. Budgeting is key and involves setting realistic goals, identifying income and expenses, separating needs from wants, and planning for seasonal costs. It is also important to save money for emergencies and future goals while avoiding common financial scams like phishing, identity theft, and fraudulent scholarships. Insurance provides protection from financial losses, and developing strategies like paying bills on time, eliminating debt, and growing one's net worth can help achieve financial stability.

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    Financial Literacy

    FINANCIAL LITERACY
    -It is a core skill in which people need take charge of their own finances, budget, financial choices,
    managing risks, saving credit and financial transactions.
    -The ability to make informed judgments and make effective decisions regarding the use and
    management of money.
    WHAT IS THE IMPORTANCE OF STARTING FINANCIAL LITERACY WHILE STILL YOUNG?
    -Financial literacy is the capability of the person to handle his/ her assets especially cash more efficiently
    while understanding how money works in the real world?
    FINANCIAL PLAN
    - Teachers need to have a deeper understanding and capacity to formulate their own financial plan. It is
    wise to consider starting to plan the moment they hand in their first salary, including the incentives,
    bonuses and extra remunerations that they receive.
    -Kagan( 2019) defines Financial Plan as a comprehensive statement of an individual’s long term
    objectives for security and well-being and detailed savings and investing strategy for achieving the
    objectives. It begins with thorough evaluation of the individual’s current financial state and future
    expectations.
    STEPS IN CREATING FINANCIAL PLAN:
    1. Calculating net worth- the amount by which assets exceed liabilities.
    a. Assets-cash, property, investments, savings, jewelry and wealth
    b. Liabilities- credit card, debt, loans, and mortgage.
    c. Total assets- total liabilities = current net worth
    STEPS IN CREATING FINANCIAL PLAN:
    2. Determining Cash flow= knowing where money goes every month.
    3. Considering the priorities
    a. Retirement strategy
    b. Comprehensive risk management plan
    c. Long term investment plan d. Tax reduction strategy
    FIVE FINANCIAL IMPROVEMENT STRATEGIES
    1. Identify your starting point
    2. Set your priorities
    3. Document your spending
    4. Lay down your debt
    5. Secure your financial future
    FINANCIAL GOAL AND PLANNING AND SETTING
    -Financial goals- targets, usually driven by specific future financial needs such as saving a comfortable
    retirement, sending children to college or enabling a home purchase.
    FINANCIAL GOAL PLANNING
    1. Time horizon
    2. Risk tolerance
    3. Liquidity needs 4. Investment goals: growth, income and stability
    BUDGET AND BUDGETING
    -A budget is an estimation of revenue and expenses over a specified future period of time and is usually
    compiled and re-evaluated on a periodic basis.
    BUDGET AND BUDGETING
    7 steps to good budgeting
    1. Set realistic goals
    2. Identify income and expenses
    3. Separate needs from wants
    4. Design your budget
    5. Put your plan into action
    6. Plan for seasonal expenses
    7. Look ahead
    SPENDING
    PRACTICAL STRATEGIES
    1. Start by listing 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 it costs.
    4. Project future cost
    5. Calculate how much you need to set aside each period.
    6. Prioritize your goals.
    7. Create a schedule for meeting your goals.
    INVESTMENT AND INVESTING
    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)
    3. What types of investment interest you? ( Investment type)
    SAVINGS
    - Setting aside a little money for emergency savings fund.
    REASONS WHY SAVE MONEY
    1. To become financially independent.
    2. To save everything you buy.
    3. To prepare for the future
    4. To go out of debt.
    5. To augment annual expenses.
    6. To settle unforeseen expenses.
    7. To respond to emergencies
    8. To mitigate losing your job or getting hurt
    9. To have a good life.
    COMMON FINANCIAL SCAMS TO AVOID
    1. Phishing
    2. Social media scams
    3. Phone scams
    4. Stole credit card numbers
    5. Identity theft
    TIPS TO AVOID COMMON FINANCIAL SCAMS
    1. Never wire money to a stranger.
    2. Don’t give out financial information
    3. Never click on hyperlinks in emails
    4. Use difficult passwords.
    5. Never give your social security number.
    6. Install antivirus and spyware protection.
    7. Don’t shop with unfamiliar online retailers.
    8. Don’t download software from pop-up windows.
    9. Make sure the websites you visit are safe.
    10. Donate to known charities only.
    FINANCIAL SCAMS AMONG STUDENTS
    1.Fake scholarships
    2.Diploma mills
    3.Online book scams
    4.Credit card scams
    INSURANCE AND TAXES
    -Insurance is a contract ( in the form of a policy) between the policy holder and the insurance company,
    whereby the company agrees to compensate for any financial loss from specific insured events. In
    exchange for the financial protection offered, policyholder agreed to pay a certain sum of money, known
    as premiums to the insurance company.
    LIFE INSURANCE
    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 financial support
    3. For funding various financial goals
    4. Acts as retirement secured conform
    5. It covers costs incurred from taxes and debt.
    TYPES OF LIFE INSURANCE
    1.Endowment
    2.Term
    3.Whole life
    4.Variable universal life
    FINANCIAL STABILITY
    10 strategies in reaching financial stability
    1. Making savings automagical
    2. Control your impulsive spending
    3. Evaluate your expenses and live frugally.
    4. Invest in your future
    5. Keep 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
    1. You never overdraw your checking account.
    2. You don’t sleep over finances
    3. You use credit cards 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 opinion about financial matters and you inspire them.
    7. You’re generally happy with your financial situation.
    8. You contribute more to your retirement
    9. You can afford to buy the things you really want.
    10.You’re generous with money when it comes to charities or helping others.

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