TOPICS TO REVIEW spending, especially if your income is limited.
Always
FINLIT & PWM
QUIZ 1
OBSTACLES TO BUILDING WEALTH
1. LACK OF INCOME
 most common reason given for not being able to save
which is true.
 A considerable number of Filipinos are just within or below
the poverty level. Millions of families can barely provide for
their basic needs, and there is simply not enough money to
save.
 big obstacle to wealth building but use this barrier as a
challenge to find creative ways to increase your income.
2. POOR SPENDING HABITS
 Many Filipinos have inferior spending habits, wasting
their money on a lot of things that they don't really
need.
 Worse, some people continue to spend even if they have
run out of money by using their credit cards. You should
be aware that every time you use your credit card, you
are spending your own money: money that you still
haven't earned.
 Saving and building wealth is not just a question of how
much you are earning, but more importantly, it is about
how much you are keeping and growing.
 Break out of the habit of irresponsible and careless
see to it that you spend less than you earn. Be wise
about spending money!
2. LACK OF PATIENCE
 Many people have a short supply of patience when it
comes to saving
and growing money. They want to get rich as quickly as
possible; that
is why investment scams have victimized thousands. They are
easily
attracted to get-rich-quick schemes that promise unbelievably
high
profits within a short period, even if they don't work for it.
Millions are also into gambling, hoping for that one big win!
 You do not build wealth through luck; it is a slow, deliberate
process that requires regular and continuous saving and
investing for a long time. It doesn't happen in a few days,
weeks, or months; it takes years to build your wealth. But it
can be done! So be patient and be persistent in saving. The
key to building wealth is consistency and persistence. Do
not focus on how slow your money is growing. Instead, look
at how you're getting nearer to your dreams with every
penny you save.
4. PROCRASTINATION (TSAKA NA HABIT)
 Filipinos are well-known for their "mañana" or
"tsaka na" habit. It shows in a lot of things that we
do or fail to do.
 Even when it comes to saving, we procrastinate.
Many put it off for another time, another day,
week, month, year... and then another, and then
another only to find out later that they have run
out of time.
 Start saving as early as possible. Delaying will
cost you money. Remember that time is money;
do not wait for the right time to start saving,
because the right time is NOW!
5. BAHALA NA ATTITUDE
 Many Filipino people, when faced with an awkward
situation, he will courageously plunge into action
declaring, "bahala na". This is an admirable trait but an
inferior and risky attitude to use when trying to attain
financial security. It means you don't know what to do.
Whatever the reason, there's little chance that you
will achieve your goals if you will rely on "bahala na!"
 You do not get wealthy by accident. Building wealth
requires detailed planning and consistently doing
essential tasks like setting aside a certain amount of your
income for savings every month and investing it
intelligently. It's not for the lazy, who just depend on
others for their continued survival. Your financial future
is your responsibility, so do what is necessary to make
sure that it's a bright one. Hindi dapat "Bahala na"
6. LACK OF SELF-CONFIDENCE
 People prefer to stay where they are and do
their usual job even though it does not improve
their situation. You often hear people say,
"ayokong yumaman, mahirap gawin yon, di ko
kakayanin." Many people are scared even to
try.
 It is better to have tried and lost than not to
have tried at all. Do not be afraid of failure.
Failure makes you stronger and wiser and gives
you a better chance of succeeding the next time
around. Failure is part and springboard to the
ladder of success.
7. HOPELESSNESS (KAWALAN NG PAG- ASA)
 Filipinos are naturally close-knit: people in a community
share a strong bond and often share the same sentiments
and have the same attitude. Growing up in a poor
community seems to prevent most people from taking steps
to improve their financial condition. Although the dream of a
better life, they don't have the desire to go for it."Isinilang
na kaming mahirap, mamatay kaming mahirap, ito ang
gaming kapalaran" is a common expression of
hopelessness and resignation to their fate.
 Let go of these beliefs that hold you back from achieving
financial independence. Strive to break free from your
financial difficulties. (Wag kang sumuko dahil lang sa
kahirapan, dahil hindi ito hadlang para ikaw ay
magtagumpay) As long as there are people who have
successfully rise above poverty through hard work,
discipline and persistence, there is always hope that you
can also do it. (Ika nga, habang may buhay, may pag-asa,
huwag kang susuko kaibigan.) Don't give up, just give in.
Just do it!

8. PRESSURE FROM FAMILY AND FRIENDS
 Many parents, mostly those who failed to plan for their
financial security, pressure their working children to give
them regular financial support and also demand that they
take care of the education of their siblings.
 Such demands can seriously affect your
capacity to save and often there's nothing left
for you to set aside. Helping is good, but you
must set a budget intended for helping others,
not up to the point that you borrow money just
to help.
9. LOW FINANCIAL IQ
 Many people have the capacity to save and make
wealth. However, they don't have enough knowledge
on how to do it because it was not being taught in
school in the past.
 Many educated and professionals do not know how
to manage their personal finance. In short, they are
financially illiterate. People who are lacking in financial
intelligence will not be able to apply strategies for
saving effectively or identify investment opportunities,
which can significantly boost their savings.
 Without an adequate understanding of personal
finance, you can easily fall victim to investment scams
as well as expensive and predatory loans that can
wreak havoc on your finances or wipe out your life
savings.
IMPORTANCE OF FINANCIAL LITERACY
1. SURVIVE A FINANCIAL CRISIS
 Crisis like: an accident, illness, job loss, failure of a
business or a
sudden death of the family’s bread winner. “Save for the rainy
days”, what does this exactly mean?
 Adequate savings will give a peace of mind and help you
sleep
better at night nowing that you will be able to handle a financial
emergency that comes your way.
“ Kapag may isinuksok, may madurukot”
2. IMPROVE THE LIVES AND WELL-BEING OF THE FAMILY.
 It is nearly impossible to buy anything of high alue if you do
not have any savings. While it’s true that money cannot buy
happiness, it can certainly buy things that will improve you
buy a nice decent house, a car, pay for your children’s
quality education or allow you to invest in a business. it also
allows you to treat your family to occasional simple
pleasures like vacations that are good for bonding. Many
couples quarrel ad even separate due to money problems.
With enough savings you will have one less thing to argue
about; it helps keep the relationship healthy.
3. ENJOY YOUR GOLDEN YEARs
 With great advances in medical and health care and
greater awareness about finances and healthy living, many
of us can expect to live to a ripe old age. Do not depend on
your pension and money coming from your children when
 you retire. Saving regularly while you are still working will
help you avoid being forced to continue earning for a living
after you retire. To ensure golden years will shine and let
you do things you enjoy, start saving today the funds you
will need for the future.
KEYS TO BUILDING WEALTH ACCDG TO PATIENCE
The key to building wealth is consistency and
persistence.
FINANCIALLY LITERATE-
to be financially literate is to know how to manage your
money. This means learning how to pay your bills, how to
borrow and save money responsibly, and how and why
to invest and plan for retirement.
FINANCIAL SECURITY
Financial security refers to the peace of mind you feel when
you aren't worried about your income being enough to cover
your expenses. It also means that you have enough money
saved to cover emergencies and your future financial goals.
INVESTMENT SCAMS
BAHALA NA/
FAILURE-
SAVINGS-
A healthy amount of savings is a
foundation on which you will build your
personal wealth. Without any savings it
is impossible for you to achieve financial
security.
INFERIOR
PERSONAL FINANCE
TSAKA NA /
WEALTH-
an abundance of valuable possessions or money;
the state of being rich; material prosperity; plentiful
supplies of a particular resource; affluent; prosperous.
The continuous comfortable living as a lifestyle
where there is financial freedom or financial
independence with a state of peace of mind and
conveniently retire from work.