FINANCIA

L
LITERAC
 LEARNING
OBJECTIVES
Assess level of
Define personal
financial financial literacy
literacy using set of
standards and
questions
 LEARNING
OBJECTIVES
Start practical
Characterize steps to
financial literacy develop
in the personal
Philippines
financial
literacy.
 Financial
Literacy
it is the ability to use
knowledge and skills
to manage one's
financial resources
effectively for lifetime
financial security
(Mandell, 2009).
 FINANCIAL
LITERACY

Knowledge Knowledge
of financial of financial
products concepts
 FINANCIAL
LITERACY
Having the
Being
mathematical
engaged in
skills or
numeracy certain
necessary for activities such
effective financial as financial
decision making planning
 Question?
Why do they need to
incorporate financial literacy in
the school curriculum?
 • income earned or
Earning received by people
Income • different types of jobs as
well as different forms of
income earned or
received
 • benefits and cost of
increasing income through
the acquisition of education
Earning and skills
Income
• government programs that
affect income

• labor market
 • scarcity, choice, and
opportunity cost

Buying • factors that influence

Goods and spending choices
Services
• Comparing the costs and
benefits of spending
decisions
 • basics of budgeting
and planning
Buying • making spending
Goods and decision
Services
• payments methods,
costs, and benefits of
each
 • Budgeting and
classification of
expenses
Buying Goods

and Services
• satisfaction,
determinants of demand,
costs of information
search, choice of product
durability
 • the role of government
Buying Goods and other institutions
and Services
in providing
information for
consumers
 • concept of saving and
interest

Saving • how people save money,

where people can save
money, and why people
save money
 • the role that financial
institutions play as
intermediaries between
savers and borrowers
Saving
• the role government
agencies play in
protecting savings
deposits
 • role of markets in
determining interest
Saving rates

• the mathematics of
saving
 • the power of compound
interest

• real versus nominal

interest rates
Saving
• present versus future
value

• financial regulators
 • the factors determining
the value of a person's
savings over time

Saving • automatic saving plans,

"rainy-day“ funds

• saving for retirement

 • concept of credit and
the cost of using credit
Using • why people use credit
Credit and the sources of
credit

• why interest rates vary

across borrowers
 • basic calculation related
to borrowing

Using • credit reports and credit

Credit scores

• behaviors that contribute

to
 • strong credit reports and
scores

Using • impact of credit reports

Credit and scores on
consumers

• consumer protection
laws.
 • concept of financial
Financial investment
Investing
• variety of possible
financial investments
 • calculate rates and
return
Financial

Investing • relevance and

calculation of real and
after-tax rates of return
 • relevance and
calculation of real and
Financial
after-tax rates of return
Investing
• how markets cause
rates of return to change
in response to variation
in risk and maturity
 • how diversification
can reduce risk
Financial

Investing
• how financial markets
react to changes in
market conditions and
information
 • concepts of financial
risk and loss
Protecting

and Insuring • Insurance

• managing risk
 • identity theft

Protecting • life insurance

and Insuring products

• how to protect oneself

against identity theft
 Question?
What do you think is the
benefits of Financial
Literacy?
 • determines one's ability to
provide basic needs attitude
toward money and investments

Benefits • enables people to understand

and apply knowledge an skills
to achieve a lifestyle that is
financially balanced,
sustainable, ethical and
responsible
 • World Bank study in 2014
estimated 20 million Filipinos
saved money but only half
Financial had bank accounts
Literacy in the
Philippines • Asian Development Bank
study in 2015 revealed that
PH does not have a national
strategy for financial
education and literacy
 • in 2016, Bangko Sentral
ng Pilipinas released the
national strategy for
Financial
financial inclusions,
Literacy in the
stating that while
Philippines
institutions strive to
broaden financial
services, financial literacy
should also complement
such initiatives.
 • As per Standard and poor's
ratings services survey last
year, only 25% of Filipinos
Financial are financially literate. this
Literacy in the means that about 75 million
Philippines 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
Financial PH population is invested
Literacy in the in it.
Philippines

• More than 80 percent of

the working middle class
have formal financial
plan.
 • Frugal • Indifference
Types on how
people view • Pleasure • Powerful
money
• Status • Self-worth
PRACTICAL STEPS YOU CAN
UNDERTAKE TO ENHANCE
YOUR FINANCIAL LITERACY
• Setting Financial Goal
• Developing a Spending
Plan
• Importance of saving
 Easy Steps
Developing a • Record
• Time and
Spending Effort
Plan • Review

• Take Action
 • Emergency
Bolster • Instability of
Importance of Social
• Retirement
Saving Security

• Future • A little Goes

Events a Long Way
 • Save before you
Two ways to spend
save
• save after you spend
wisely
 • commit to a month
In order to
stick to the • find an accountability
saving habit partner
 • find a savings role
In order to
model who
stick to the
successful with
saving habit his/her money,
through tried and
savings
 • Write your goal down
In order to and track it
stick to the
saving habit • avoid tempting
situations
Thank you
For
Listening!