Educ 206- Building and Enhancing New Literacies Across the Curriculum

Name: Tarroza, Lorraine S. 2nd Semester SY 2020-2021

Program/Year/Block: BSED-Social Studies 2F Date Accomplished: May 05, 2021.

Address: J.M. Alberto, Baras, Catanduanes Contact Number: 09559076446

LM 8-Learning Reflection

Fill-in the following coins with concepts on financial literacy related to budgeting, spending,
investing and saving. Then, cite the reasons why we need to have them and also ways in applying or
practicing them.

BUDGETING SPENDING INVESTING SAVING

Why: Why: Why: Why:

How: How: How: How:

EXPLANATIONS:

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. Budgets can be made for a variety of
individual or business needs or just about anything else that makes and spends money. Budgeting, on
the other hand, is the process of creating a plan to spend money.

 Why? We need to create this spending plan and do budgeting because it allows us to
determine in advance whether we will have enough money to do the things we needs or likes to
do. Thus, budgeting us ensures to have enough money for the things needed and those
important ones and will keep one out of debt.
 How? In order to create a good budgeting we need to follow the seven steps which may help us
to attain a good budgeting. Step one, set realistic goals, this goals for the money will help make
smart spending choices upon deciding on what is important. Step 2, identify income and
expenses. Upon knowing how much is earned each month and where it all goes, start tracking
the expenses by recording every single cent. Step 3, separate needs from wants. Set clear
priorities and the decisions become easier to make by identifying wisely those that are really
needed or just wanted. Step 4, design your budget because it make us sure to avoid spending
more than what is earned. Balance budget to accommodate everything needed to be paid for.
Step 5, put your plan into action. Match spending with income time. Decide ahead of time what
will you use each payday. Non-reliance to credit for the living expenses will protect one from
debt. Step 6, plan for seasonal expenses. Set money aside to pay for unplanned expenses so
to avoid going into debt. And lastly step 7, look ahead. Having a stable budget can take a month
or two so, ask for help if things are not getting.

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 Educ 206- Building and Enhancing New Literacies Across the Curriculum

Spending - If budget goals serve as financial wish list, a spending plan is a way to make those
wishes into reality.

 Why? We need to create a spending plan in order to set and prioritize the budget goals.
 How? We need to follow a practical strategies in setting and prioritizing budget goals and
spending plan. First, start by listing your goals. Setting budget goals requires forecasting and
discussing future needs and dreams with the family. Second, divide your goals according to
how long it will take to meet each goal. Classify your budget goals into three categories: short-
term goals (less than a year), medium term goals (one to five years) and long-term goals (more
than five years). Third, estimate the cost of each goal and find out how much it costs. Fourth,
project future cost. To calculate the future cost of the goals, there is a need to determine the
rate of inflation applied to each particular goal. Fifth, calculate how much you need to set aside
each period. Upon knowing the future cost of the goals, next is to determine how much to put
aside each period to meet all the goals. Sixth, prioritize you goals because it will serves as
guide in decision-making. Lastly, create a schedule for meeting your goals. It is important to lay
down all the goals according to priority with the corresponding amount of money needed, the
time it will be needed and the installments needed to meet the goals.

Investing - Spending or setting aside money for future financial gain. For an individual, investment
might include the purchase of financial assets, such as stocks, bonds, mutual funds, or life insurance.
Investment can also include the purchase of durable goods, such as housing, car or anything you want
to purchase.
 Why? We need to do investment because through this we can saved more money than what
we expect at a time of need, considering investing our money to earn more interest than what
we savings account is paying us.
 How? In doing an investing we need to consider four aspects: “How long will you invest the
money?” (Time Horizon), “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) and last “What types of
investment interest you” (Investment Type).

Saving - Savings means "money saved," as in savings help provide a secure retirement. Savings
will also help in buying things that are needed or wanted without borrowing.
 Why? It is important to save money in order to become financially independent, to save
everything you buy, to buy a home or a car, to prepare for the future, to get out of debt, to
augment annual expenses, to settle unforeseen expenses, to respond to emergencies, to
mitigate losing your job or getting hurt and to have a good life.
 How? Set some money aside and put it into savings account on a regular basis. If you receive a
bonus from work, an income tax refund or earnings from additional or side jobs, put it to your
savings and use them as an emergency fund.

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 Educ 206- Building and Enhancing New Literacies Across the Curriculum

LM 8-LET SAMPLERS: Taking the Examination

Read and analyze each item carefully. Choose the letter of the best answer.
1. Survey reveal that some teachers face their retirement without savings at hand which usually
bring them to worse poverty scenario. What are the reasons behind this?
I. Culture of extended family dependency
II. Lack of priority on retirement preparation during earning career years
III. Strong passion and value for the teaching profession
IV. Lack of value on their career effort and remunerations
A. I and II only B. II and III only C. II and IV only D. I, II, III and IV
2. Who among the following would be mostly target victims of financial scammers?
A. The rich and powerful
B. The generous and kind
C. The passive and submissive
D. The finally illiterate
3. Which of the following strategies can teachers LEAST consider in preparing for their retirement?
A. Continuing professional development towards promotion and increment
B. Sustain expenses relatively lower than salaries
C. Avail of life and retirement insurance
D. Frequent trips with grabbed promo fares and freebies
4. According to previous researchers, teachers go into unreasonable debts and loans which
eventually lead them to payables and unnecessarily leading them to surrender their ATM cards.
Which financial factor is considered the least to affect this practice and its results?
A. Savings B. Expenses C. Compensation and fringe benefits D. Emergency
funds
5. Why are people victimized by financial scams that end up to the loss of properties, investments
and savings, and even to ruining their lives?
A. They have not learned in school how to avoid being scammed
B. They desire for easy and quick money.
C. It is already their destiny that may happen anytime as sketched in the palm of their lives.
D. It is always part of life and it is just that they are not wise enough to cope with it.

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