"FINANCIAL

PLANNING
BEYOND
COVID-19"
Financial Management Webinar

04 DECEMBER, 2021, 12-3PM

Ms. Knesa N. Raviz

Guest Speakers:
Mr. Hermie P. Arzagon
 Financial planning is a step-by-step
approach to meet one's life goals. A
financial plan acts as a guide as you
go through life's journey. Essentially,
it helps you be in control of your
income, expenses and investments
such that you can manage your
money and achieve your goals.

THE PROGRAMME
 W a r m e st
i n c e re a n d
AS l l
l c o m e to a
W e
INT
ROD
UCT
SHO ION
WE BY
MEG R
REN
IO
 "Live within your means"

"Your parents are not your

emergency fund, your children
should not be your retirement
fund"
- Ms. Knesa N. Raviz

Ms. Knesa N. Raviz talks about Financial Freedom

FINANCIAL
FREEDOM
It is having enough savings, investments
and cash on hand to afford the lifestyle you
want for yourself and your family.

It is never having to work a regular 8am-

5pm job to earn a paycheck and provide for
yourself and your family

It means our money is working for us rather

than the other way around.
1.) IMPROVING CASH FLOW
"For every 100% of your net income, try to
spend up to 70% and keep 30% as savings"

Cash flow can be improved by either generating

additional income (inflow) or decreasing/ controlling
your expense (outflow)
Use your passion, interests and creativity to
generate extra income.
Create a budget and be mindful of your
expenses. (Kakeibo)
LIVE WITHIN YOUR MEANS!

2.) GETTING OUT OF DEBT

Get out of bad debt!

Snowball effect-start with a small snowball, as it

starts running downhill it will become bigger and
bigger.
Differentiate good debt from bad debt.
If you are not yet debt-free, focus on paying
it off first.
TRY YOUR BEST NOT TO GET INTO DEBT.
3.) SETTING UP YOUR
EMERGENCY FUND
3-6 months worth of your money expenses
should be set aside for emergencies.

Your parents are not your emergency fund.

Your children should not be your retirement fund.
Prepare for rainy days
Stop the "sandwich generation"

4.) GETTING PROTECTED

FROM LIFE'S RISK
The biggest risk we can ever face is our
untimely demise
Protect yourself and your family from life's risk like
sickness, accident and disability. You can do this by
availing insurance products.
Accident
Disabilty
Sickness
Death
5.) INVESTING FOR YOUR FUTURE
When we have properly invested our
money, it can begin to work for us.

At least 20% of your income should be saved and

invested. Only invest in things and instrument that
you understand. Remember that investments have
risks involved.
Real Estate
Bonds
Mutual Funds
Stock (Stock Market)
Know the differences between assets and liabilities.
INTRODUCTION BY
IRENE BALLENAS
 "Continue to Progress"

"When interest is high, interest

on savings is also high and this
encourages more people to save.
Demand falls and companies sell"
"When there is less money
circulating in the ecomomy, the
economy slows down."
- Mr. Hermie P Arzagon

Mr. Hermie P. Arzagon talks about Banking Operations in the

Philippines and Its Performance Amidst the Pandemic

1.) PHILIPPINE BANKING

On the 16th century banking started

in the Philippines
 Obras Pias was the first banking established on
the Philippines on the 16th centruy. Obras Pias
was a charitable foundation during the
colonization in Spanish period. The Church
directed a share of personal fortunes to its
charities such as the obras pias. Donors had
specified that the funds are to be used for
charitable, religious and educational purposes

On today, banking are ensured by the Federal

Deposit Ensurance Corporation (FDIC) making
them a safe place to deposit money. The General
Banking Law of 2000 was enacted repealing the 52
year old banking law

2.) BANK CLASSIFICATION

How are banks classified?

Thrift Banks Rural and Cooperative Banks

• Basic Loans & Deposit •Basic Rural Banking in
• Services the countryside

Commercial Banks
Universal Banks • Basic Loans & Deposit
• Commercial Bank • Foreign Currency Deposit
Services Unit (FCDU)
• Underwriting • Letters of Credit
Investment Banking • Discounting PNs
• Acquiring Marketable Bonds
and other Debt Securities
 WHY THE REDUCTION
OF NUMBER OF BANKS?

Mergers and Closure of

consolidations Mismanaged Banks

3.) BANK CAPITALIZATION

Capital Requirement, Number of
Branches and Location
4.) INTEREST RATES
IS INTEREST A FRIEND
OR A FOE?
It depends on whether you
are earning it or paying it.

HOW ARE INTEREST

RATES DETERMINED?
Market rates are generally determined by
supply and demand in the money market

WHAT ARE THE FACTORS THAT

INFLUENCE THE RISE AND FALL
OF INTEREST RATES?
Inflation Rates
Fiscal Policy Stance
Intermediation Cost
Other Factors

WHAT IS THE IMPACT OF HIGH

AND LOW INTEREST RATE?
High interest rate can slow down the economy. When interest
is high, the borrowing costs more and consumers cut back on
their spending. When interest is high, interest on savings is
also high and this encourages more people to save. Demand
falls and companies sell less. When there is less money
circulating in the economy, the economy slows down.
Recession occurs when the economy contracts for two
successive quarters.
Low interest rate can boost economy. When
interest fall, people and companies borrow more
and save less. Output and productivity increase and
boost economic growth.

IF LOW INTEREST RATES

PROVIDE SO MANY BENEFITS,
WHY ARE THEY NOT KEPT LOW
ALL THE TIME?
Having a very low interest rate for a long time can
cause inflation. Demand outstrips supply and
prices rise when there is too much liquidity.

RESERVE REQUIREMENT
Amount set aside by banks that can be lent out.
Parked at the BSP without interest.
5.)HOW DOES THE PHILIPPINE
BANKING SECTOR PERFORM
AMIDST THE PANDEMIC?
Philippine Banking System -
Deposit
Philippine Banking System -
Loans

Philippine Banking System -

Past Due
6.)PROJECTIONS OF FINANCIAL
INSTITUTIONS

GDP growth for 2022 is seen at 6%

Opportunity sectors for lending
◦ Construction
◦ Construction Supply
Hollow block supply
Sand and gravel supply
◦ Wholesale and Retail Trade
◦ Agriculture
Consumer loans particularly Auto
Loan shall grow Auto repair shops
Shops for accessories Tire supply
The banks shall continue to
strengthen its Information
Technology (IT) structure
We shall be looking at more bank
mergers and acquisitions.
Banks’ branch expansion shall
continue
Race to the unbanked and the
underserved
 For

N U T E S
5 M I

nd
a
Q & A
INTERACTIONS
WHAT DO YOU WANT
TO LEARN?
ASS
ETS
?
 S ? ? ?
E B T
D


Very Grateful

to all

CLOSING REMARKS
Awarding

Ceremony
 Class Picture

with the Sp
eakers

Documentations