Wealth Creation

OBJECTIVES

At the end of the lesson, the students are expected to:

1. define the wealth creation;
2. explain the importance of wealth creatio;
3. discuss the wealth creation plan; an
4. explain the reason of investing.
 WHAT IS WEALTH CREATION?

 What is wealth creation and how can you create a saving strategy that works? This is a
question that’s probably crossed your mind at least once. During this pandemic all
nations struggle to obtain financial stability which has tremendous impact to our
economy.
 Malindog Uy (2020) stated that the Philippines is one of the countries that is deeply
affected by the Covid-19 pandemic. Given the increasing number of Covid-19 positive
cases, the country continues to lose money and the lower percentage of gross domestic
product (GDP) is not helping. It is most likely that in the succeeding quarters, it will be
hard for the Philippine economy to bounce back
 The term wealth creation can mean a lot. To others it may
mean increasing the level of money, it can also mean getting
rich, or it can also mean investing to increase money.
 In Entrepreneurship, Wealth Creation is the combination of all
financial planning and investment advice for the betterment of
the assets owned by an individual, family, or company. It
includes planning for the future like getting married, having
children, the costs of education, tax services, estate planning,
and retirement planning.
 Yet, one must remember that in order to be successful in wealth
creation, needs, wants, and goals must be understood,
organized, and prioritized first, to be able to meet the growth
opportunities of wealth.
Importance of Wealth Creation

1 . Regular source of income. Good investments provide a source of income;

they help individuals pay bills in the future or even after retirement and
provide emergency cash or fund in times of needs or special events and
occasions.
2. Healthy Retirement. Building wealth is a requirement for a healthy and happy
retirement. The wealth creation is specifically important to those who are near in their retirement years for it can help them
enjoy life without so much
financial worries.
3. Goal-based investing. As explained above, the first step in wealth creation is
determining your goal. In this way, you know what to do, what to achieve, and
how to push yourself harder to achieve that goal. A goal-based investing help
in achieving targeted wealth. Having a goal also works well with finances, for
it helps individual to budget income and save more.
Ideal Wealth Creation Plan

Since Wealth creation is a part of a financial plan, here are some steps to
consider in planning wealth creation.
1. Create a budget
2. Invest rather than just saving.
3. Understand the impact of inflation on saving.
4. Invest in appreciating assets
5. Become Debt-free.
6. Cut on unnecessary expenses
7. Don’t mix insurance with investments
What is budget?

 Budget is defined as the estimation of income and expenses over

a period of time. It is commonly compiled and evaluated on a
periodic basis to achieve a certain amount. Creating a budget is
for everyone that wants to track their money and how they
spend it.
Creating a budget in five steps

1. Figure out your after-tax income

2. Select an appropriate plan
3. Track your progress
4. Automate your savings
 5. Revisit your budget as needed
Investment

 Investment is an asset or item gained with a goal of

appreciating and producing income. In economics, investment
is the act of acquiring assets or goods that will not be consumed
today but will be used in the future. In finance, investment is a
monetary asset purchased to provide income in the future or to
be sold at a higher price for a profit.
Categories of Investment

1. Ownership Investment
2. Lending Investment
 3. Cash Equivalents
Reason to start Investing

1. To keep money safe

2. To grow money
3. To have stable income
 4. To achieve financial goals
 Understanding the Impact of Inflation on Savings conomyy. It
can be the rise of the prices of food, clothing, transport,
housing, etc. As the price increases, people suffer their
capability to consume different goods and services decreases.
An inflation that is too high is not good for individuals and
economy. Furthermore, inflation reduces the value of money.
Therefore, the value of the money you saved today will not have
the same value in the future due to inflation.
Pre-test

 As a student, how would you create wealth?

ACTIVITY # 1
Answer the following questions in the answer sheet provided. State your point and reason in not
less than five (5) sentence.
1. What do you understand by the word investment?
2. Why would an investor be willing to take a greater risk?
3. What are your financial goals? What are your plans to meet them?
4. Is Philippines a rich country?
REFLECTION
Based on the discussion of Lesson 1 – Wealth Creations, what part did you enjoy the most?
What are your learnings? Is there anything in the lesson that you could apply or use in your
life?
 GROUP 1

Members:
1. Iliscupidez, Mark Henrick R.
2. Espiritu, Genzen R.
3. Espino, Kid Harrie C.
4. Gregorio, Jerome B.
5. Reyes, Marfil E.
6. Vicente, Justine V.