Republic of the Philippines

DEPARTMENT OF EDUCATION
Region IV-A CALABARZON
DIVISION OF BIÑAN CITY
Brgy. Sto. Domingo, City of Biñan, Laguna
Tel. No. 049-511-8620

SESSION GUIDE
Title of the Program/Project/Activity: Teacher Induction Program –Phase 1
Title of the Session: FINANCIAL LITERACY
Duration, Date and Venue: 2 hours; September 26, 2018 , Binan People’s Center Auditorium

Terminal Objective: With their clear understanding of principles of financial literacy and its importance, the participants should be able to
apply it in making personal financial development plan and be determined in achieving their financial success

Enabling Objectives:
1. Identify principles of financial literacy and its importance in improving personal practice.
2. Analyze by charting one’s own financial standing by creating a table and graph showing cash flow ( Income VS Expenditure)
3. Use the cash flow chart in charting one’s financial success.
4. Determine ways of achieving financial success.
Expected Output: My Budget and Spending Plan and My long- Term and Retirement Plan

Key Understanding/Input:

 Financial Literacy is the education and understanding of knowing how money is made, spent, and saved.
 Personal Financial Literacy refers to your efficiency in managing personal finances through making appropriate decisions in
budgeting, saving, investing, and planning
  Financial goals . It can be short term or long term and have to be SMART ( Specific, Measurable, Attainable and Realistic , and
Time-bound)
 Compounded Interest refers to an interest gaining interest.
 Achieving your financial goal is understanding one’s own financial cash flow.
 Control of your financial situation can be done through setting up a spending or a budget plan
 Choose easy ways of budgeting
 Be a wise consumer
 Focus on needs not wants
 Debts are rooted by greed, ignorance, impulsiveness and self-indulgence
 Some sources of debts are spending our tomorrow’s income today and not willing to change our lifestyle.
 Saving is the key in preparing for emergency.
 Lighten up. Have fun. But spend prudently.
 Allocate 10% of your income for yourself.
 Do not spend beyond the remainder of your income. Make investments.
 Make thy dwelling a profitable investment and insure a future income
References: TIP Module 2. pp 19-33; e-book on Making Sense of Your Money; ” ‘Till Debt Do Us Part” by Chinkee Tan;
Money Management international E-Book on Financial literacy: Your 30 Step Path to Financial Wellness);
George S. Clason, “The Richest Man in Babylon”
Session Flow:

OBJECTIVE KEY UNDERSTANDING METHODOLOGY/PROCEDURE MATERIALS TIME

ALLOTMENT
Set the tone for learning Lecture 5 min
and introduce to the -Introduction
participants the session Raise to the consciousness of the
and its objectives participants that the session is another
very important one for them to be
looking forward to

SAY: Good morning our dear new

teachers?
How’s your sleep, your breakfast? I hope
you are totally refreshed and very much
ready for some new undertakings today.

In the previous session, you were able to

evaluate your improvement in teaching
practice as a result of your assessment
for personal and professional
development
This time you are going to determine
ways of achieving your personal
financial success with the clear
understanding of principles of financial
literacy and its importance to you my
dear participants.

DO: Flash the objectives one at a time

 while reading it. You may ask them to
read with you or as a group

Say: Our enabling objectives are the

following:
1. Identify principles of financial Slide Deck 3 and 4
literacy and its importance in
improving personal practice.
2. Analyze by charting one’s own
financial standing by creating a
table and graph showing cash
flow ( Income VS Expenditure)
3. Use the cash flow chart in
charting one’s financial success
4. Determine ways of achieving
financial success

Our terminal objective is to apply

your understanding of financial literacy
and its importance in making personal
financial development plan and be
determined in achieving your financial
success

Let participants Activity 8 min

answer short self- Financial Status Q (pronounced as
“ko”)?
assessment on their
current financial Say: Before we proceed with the
situation discussion, let’s have a short self-
assessment on your current financial
situation that will help you determine
your status.
In relation to Data Privacy Act , your
answer will be used for the purpose of
discussion in this session.

Please answer the questions that will be

flashed on the screen. Read the
instructions and be honest with your
answers my dear participants.

Do: Flash slide deck# _5___

Answer the following with all Slide deck # 5 and 6
honesty with words ALWAYS ,
SOMETIMES or NEVER

Financial Practices
1. Pay the rent/mortgage payment and
utility bills on time?
2. Save at least 10% of your net
income?
3. Keep three months net income in
reserve for emergencies?
4. Plan ahead for large expenses?
5. Set and keep financial goals?
6. Follow a budget?
7. Shop for comparison?
8. Regularly review your credit report?
9. Examine your checking account
statements often?
 10. Continue your financial education?
Afterwards explain the scoring and
flash the interpretation of the scores. (
flash it one at a time)

Scoring:
Add your points using this system
ALWAYS - 2 points
SOMETIMES – 1 point
NEVER - 0 point

Interpretation:
If your total score belongs to
0-10 points Indicates a need to take
control of your finances
11-15 points reflects a good effort to
manage your money efficiently
16-20 points demonstrates ability to
manage your finances successfully

Processing

Say: How was the result of your

activity? Raise your hands whose score
belongs to 0-10 pts? 11- 15 points ? and
16-20 points?

Do: Ask the participants of their

Slide Deck # 7
reflection on the result of their self-
assessment by asking “What realization
have you gained on your score?
 Note : You may ask at least 6 or 8
participants to give their reflection

Slide Deck # 8
Explain the terms used in Say: On the given self-assessment 5 min
the self –assessment tool material that you’ve used, what are the
and some related words in terms that need to be clarified before we
the topic. proceed to our topic for this session?
Note: You may call at least 6
participants to give their answers then
flash the slide deck
Do: Flash the Slide Deck # __9__
Financial one’s awareness and
literacy ability in managing
finances to make
responsible and
effective decision on
the flow of the
finances.
Income the amount earned
from one or many
sources
Expenses the amount spent on
anything
Debt the amount or thing
owed from an
individual or an
institution
Saving the amount set aside

Discuss the key concepts  Financial Literacy is the
education and understanding
of knowing how money is
made, spent, and saved.
 Personal Financial Literacy
refers to your efficiency in
managing personal finances
through making appropriate
decisions in budgeting,
saving, investing, and
planning
 Financial goals can be short
term or long term and have
to be SMART ( Specific,
Measurable, Attainable and
Realistic , and Time-bound)
 Compounded Interest refers
to an interest gaining
interest.
 Achieving your financial
goal is understanding one’s
own financial cash flow.
 Control of your financial
situation can be done
and kept for whatever
financial goal
Budgeting the breaking down of
income into different
expenses and savings
Cash flow a list or table showing
income and
expenditures
Lecture Slide Deck#
Say : Upon defining these related terms
to our session , let’s proceed
How can you live within your income
and keep away from chronic debts?
Based on the result of your assessment
you can now reflect on your financial
situation. As a teacher, be aware that
banks and other loan institutions would
love to offer you loans. Not only that.
There will also be individuals who would
sell you products through cash or credit.
They all sound tempting. Be careful.
So, before they will get you, navigate
your ways into this lesson to learn more
about how to become financially literate. Slide Deck# 12
First stop. Let’s get to know the
principles.
Do: Show the slides
1. Financial Literacy is the
education and understanding of
 through setting up a
spending or a budget plan
 Choose easy ways of
budgeting
 Be a wise consumer
 Focus on needs not wants
 Debts are rooted by greed,
ignorance, impulsiveness
and self-indulgence
 Some sources of debts are
spending our tomorrow’s
income today and not
willing to change our
lifestyle.
 Saving is the key in
preparing for emergency.
 Lighten up. Have fun. But
spend prudently.
 Allocate 10% of your
income for yourself.
 Do not spend beyond the
remainder of your income.
Make investments.
Make thy dwelling a profitable
investment and insure a future
income
knowing how money is made,
spent, and saved, as well as the
skills and ability to use financial
resources to make decisions.
These decisions include how to
generate, invest, spend, and save
money.
2. Personal Financial Literacy refers
to your efficiency in managing
personal finances through making
appropriate decisions in
budgeting, saving, investing, and
planning
The kind of life to live depends on the
way you handle your finances A person
with financial literacy will be able to live
within his/her budget to avoid chronic
debts and other financial issues. Aside
from that, he/she can effectively handle
his/her income, expenses, and debts.
Say: According to the Institute for Slide Deck #13
Financial Literacy in its e-book on
Making Sense of Your Money, there are
things that you need to consider and do
to make sense of your financial
resources.
Do:Show slide deck# __14-16____
A. Set financial goals
  Financial goals have to be set first
to identify your financial direction. Goals
can be short-term or long-term
depending on you.
 Goals have to be SMART.
o Specific – your goals should
state clearly what will you do and how
you will do it.
Otherwise you won't be able to focus
your efforts or feel truly motivated to
achieve it.
o Measurable – these have to
be measurable for easy progress
monitoring or for taking action if you are
not on the right track.
o Attainable and realistic –
your goals must also be based on your
current financial status. Goals should
require you discipline for you to stick to
the plan.
o Time-bound – goals require
timeframe. This will set also your
direction and keep you away from
procrastination and from the pitfall of
debts. If it is
about paying off loans or anything
borrowed, especially with interest, you
must set the target before or on the due
date to avoid additional interest.
B. Be motivated by the compounded
interest.
 It refers to an interest gaining
 interest. Meaning, your earned interest
value will
increase in monthly or annual basis
depending on the institution where you
save your money.
 It is your friend if it is a saving
or investment interest, but, it is your
greatest enemy if it is a debt interest.
Note: Let the participants complete the
data on slide # _17__ ( computing the
interest)
Give them few minutes to solve . then
ask any participant to give their answer.
Then shoe slide deck # 17-28 one at a
time.
Say: See? Your money is growing?
How much more if you continually save
Allow participants to every year?
practice solving for Do: Show slide deck # ___
compound interest
 Suggested formula to ensure that
you will really be able to save
and gain compounded interest.

Income- Savings = Expenses

Slide deck #17-28
C. Track your cash flow

 This first essential step in

achieving your financial goal is
understanding one’s own
financial cash flow.
D. Develop a spending plan.
 Taking control of your financial
situation can be done through
setting up a spending or a budget
plan
Note : Ask them the present trend
in saving money in our country?
Do: Show slide of Peso Slide Deck 30-38
Challenge.
Say : Who among you were able
to take this challenge?
Some may not be able to take
this challenge due to some
reasons one of them is
overspending of your income,
 You may take note of these signs
of overspending.

 Use of savings to pay bills

 Delayed payment of bills
 Decrease of monthly savings
with the same income
 Increase of expenses with the
same income
 More monthly loan payment
against monthly income
Say: What would be the possible
solution for you to avoid this
overspending?
E. Choose easy ways of budgeting
 There are ways to make your
budgeting easier.
o Envelope system – use an
envelope in separating your budget for
different expenses
o Written record system – use the
template suggested above or a simple list
of budget for tracking down the different
expenses
o Electronic system – similar to
the written record system but can only
done using your mobile phone
application or computer.
o Three bank account system –
open three bank accounts for different
purposes.
 Normal savings account for day to
day banking transaction where you may
get your daily expenses.
 Emergency savings account for
emergency purposes which mean you
only have to withdraw when it is an
absolute necessity.
 Long term savings account for
retirement or for your children’s
education.
F. Stretch your money
 Be a wise consumer. Buying
“sale” items does not mean you are wise
but only when
you bought it because it’s necessary.
Necessary means you can’t survive
without it or you don’t have any
 alternatives available.
G. Focus on needs not want
 There is a need to differentiate
needs from wants. It is only then that you
can prioritize and decide whether you
will buy or not.
 There are suggested questions to
help you decide when to spend on
anything.
o Why should I spend on this
item?
o What difference does it make if
I have it or not?
o Is there any cheaper
alternative?
Allow the participants to
Say: This time you are going to answer
answer “The Debt Test”
The Debt Test ( excerpted from Money
Management international E-Book on
Financial literacy: Your 30 Step Path to
Financial Wellness)
You are now about to unveil your
ways of dealing with debts. The
questions are answerable by YES or NO.
Answer it honestly with either “yes” or
“no”

Do: Flash the slide deck # __39-40_

Say: “YES” to any of these questions is

a sign that you may need to make debt
payoff a priority.
Why do a person get into a debts?
(Solicit answer to at least 5 participants)

In the book of Chinkee Tan ” ‘Till Debt

Do Us Part” , he identified four roots of
debts.
a. Greed – the desire to have
everything you want whatever it takes.
b. Ignorance – practices on
spending your finances and on getting
credit from an institution without
checking on its terms and conditions.
c. Impulsiveness – buying things
even if you don’t actually need them.
You tend to be lured by the “sales” on
department stores thinking that you
saved but
you actually didn’t because it’s not a
necessity. Your money, then, was put to
waste. This also speaks about being
impatient on getting something. For
example, you like to have a new
cellphone, but instead of saving for 6
months to buy a new one, you borrow Slide Deck 41-44
money from someone or from the bank
just to have it right there and then.
d. Self-indulgence – living on
the idea of gratifying yourself without
thinking that what you did put out money
on unnecessary expenses. It is good to
gratify
 yourself but you need to look at your
budget if it would still allow.

Aside from these roots of debt,

Mr. Tan also introduced the two sources
of debts.

a. We spend our tomorrow’s income

today. For this reason, we tend to rely on
credit to pay for our current bills.
b. We are not willing to change
our lifestyle. This means that our lifestyle
may not fit to our income anymore. If we
don’t change, again, we succumb to debt
to pay for the lifestyle that we enjoyed
living.

Say: So we need to know if it is really on

our habit in spending money?

What are the bad money habits that you

need to avoid or broke?
( Please refer to TIP module 2 pp 25-26)

Do: Please refer to pages 27-29

Say: Now that you know how to avoid

spending so much money this may help
you to achieve your financial success by
considering the seven cures for a lean
purse of George S. Clason, author of the
book “The Richest Man in Babylon”
 Slide Deck 45-49
Do: Please refer to pages 29 of TIP
Analyze a case studies on Module 2
problems on budgeting. Say : Let us try to apply your learning
on financial literacy on this case study.
(Please refer to pages 27-31)
The case study that you are about to read
is adopted from Next Gen Personal
Finance (NGPF) …

Note: Let participants read the Case

Study then let them answer the given
questions on each study case.
Ask some participants to show the
case study #1 through Role Playing.
Lead the participants to Slide deck 46-50
apply the principles of Say: Let’s have another case study
financial literacy in “Sangla ng ATM”
making personal financial
development plan Note : Let them read the Case Study #2
“Sangla ng ATM” and answer the guided
questions under it. Allow 5 minutes to
read.

Process their outputs

Slide Deck 51-53
 Say: To wrap it up, we may say that
Financial Literacy is the education
and understanding of knowing how
money is made, spent, and saved.
Your financial goal should be
SM,ART and to achieve yo should
 have proper understanding of your
financial cash flow and be wise on
spending and budgeting by having
your personal financial development
plan

Say: After some discussions and

clarifications on financial literacy , each
participant should make a budgeting and
spending plan using template # 5 My
Budget and Spending Plan and template
# 6 My long- Term and Retirement Plan

Thank you very much .

Note to the Facilitator: Follow strictly the notes given in the session guide
Prepared:

VIOLETA M. UMEL
Education Program Supervisor Math

Validated:

NAME OF CHAIRMAN
Position
Date