FINANCIAL

LITERACY
WHAT IS FINANCIAL
LITERACY?
LESSON PROPER:

To be financially literate is to know how to

manage your money. This means earning how to pay
your bills, how to borrow and save money responsibly,
and how and why to invest and plan for retirement.
Take the initiatives to self educate and grow your
financial knowledge by beginning with the basic of
money management and maturing into a smart
spender. Putting time into your financial development
improves saving and investing decisions.
FINANCIAL LITERACY
 is the skill to comprehend, start their own money
matters from acquiring to managing business and
investing and helping others.
 it is the ability to financially know one’s current
finances and making better literate decisions in
handling it.
 is the ability to understand and effectively use
various financial skills, including personal financial
management, budgeting, and investing.
 The term financial literacy refers to a variety of
important financial skills and concepts.

 People who are financially literate are generally

less vulnerable to financial fraud.

 A strong foundation of financial literacy can help

support various life goals, such as saving for
education or retirement, using debt responsibly,
and running a business.
 Key aspects to financial literacy include knowing
how to create a budget, plan for retirement,
manage debt, and track personal spending.

 Financial literacy can be obtained through

reading books, listening to podcasts, subscribing
to financial content, or talking to a financial
professional.
COMPONENTS
OF FINANCIAL
LITERACY
 EARN
Earning refers to the amount of
money that you could bring to
your home from a job,
investments, or businesses.
 SPEND
Spending reflects your personal
values, financial behavior, and lifestyle.
Budgeting is a useful tool that could help
you achieve your financial goals also it’s a
plan for how you want to spend your
money.
 SAVE AND INVEST
Everyone knows that saving money is
important. It’s hard to spend more money than
you could generate in your income. In saving, we
need to include emergency funds, retirement, big
purchases, personal debts. Investing is the act of
distributing resources into something to generate
income or gain profits.
 BORROWING
Borrowing refers to having debt to
other people for creating assets.
Borrowing money isn’t necessarily
bad since as long as you can maintain
a healthy credit score.
 PROTECTING
Once you have a solid investment or
budget, you need to start protecting your
money that you’ve made. Securing your
passwords and documents and buying
the best insurance may help you to
prevent scams and identity theft.
IMPORTANCE
OF FINANCIAL
LITERACY
 WHY IS IT IMPORTANT? FINANCIALLY
ILLITERATE

Financially literate
consumers not only manage A person with high
money with more confidence, level of financial literacy is
but also have a better chance able to make informed
of handling the inevitable ups
decisions using financial
and downs of their financial
lives by understanding how to information they possess.
prevent and manage issues
as they arise
 WAYS ON HOW FINANCIAL
LITERACY AFFECT YOUR LIFE
 Understand how much you earn and spend. When
building financial literacy, making a budget is one important
way to establish a true understanding of your income and
expenses.

 Repay and avoid debt. Seeking out the lowest interest rates

when comparing loan terms can save a substantial amount
over time, and so can paying off credit card balances each
month so you don't accrue interest charges.
 WAYS ON HOW FINANCIAL
LITERACY AFFECT YOUR LIFE
 Protect yourself from debt and bankruptcy. A
crucial way to prevent debt from building is to create an
emergency savings account.

 Work toward a secure retirement. Whatever your

other short-term plans, save for retirement at the
same time.
 WHAT ARE THE BENEFITS
FINANCIAL LITERACY
 It helps us understand the value of money.
 Financial literacy keeps us from being debt
slaves.
 It empowers us on how to invest and create
wealth.
 It prevents us from making poor financial
decisions.
WAYS TO IMPROVE
FINANCIAL LITERACY
What is Financial Literacy?
• The ability to understand how money
works in the world.

 Skills and knowledge

 Your tools, brain and behaviors
 Make informed and effective decisions
 Create a lifetime of financial well-being
 Manage financial resources
 Cash, investments, house, car, retirement,
insurance
Responsible Financial Behaviors Do you….

 Follow a budget to limit your spending?

 Have a credit card?
 Pay your entire credit card bill each month?
 Pay your credit card on rime?
 Build an emergency fund?
 Save and invest 5-10 percent of income?
5 PRINCIPLES OF MONEY

Earn
Save and
Invest
Protect
Spend
Borrow
 6 WAYS HOW TO IMPROVE YOUR FINANCIAL
LITERACY

1.) Learn to budget

Budgeting is one of the most important financial skills to master. A budget puts the
power in your hands and allows you to decide how to spend every money you make.

2.) Plan for emergencies

Planning for the future means expecting emergencies. This is where an emergency
fund comes in. No one wants an emergency to happen but when they do, they are costly
and stressful.
 6 WAYS HOW TO IMPROVE YOUR FINANCIAL
LITERACY

3.) Manage your debt

One key to financial literacy is learning how to manage your debt. This includes
credit cards, auto loans, mortgages, and personal loans. Every debt you owe is money
you’ve already spent from your paycheck.

4.) Start Investing

Once you have your debt under control and a plan for your emergency fund,
consider investing. Investing is a good way to grow your money and a hedge against
inflation.
 6 WAYS HOW TO IMPROVE YOUR FINANCIAL
LITERACY

5.) Save for retirement

Retirement is closer than you think. Every dollar you save today is a dollar that
helps you live better once you’re no longer able to generate income.

6.) Know the terminology

Being financially literate means knowing what different finance terms mean and
how they can affect you and your money. Spend some time to learn the basics of
personal finance, such as compound interest, APR, financial planning, the time value of
money and so on..
GROUP MEMBERS:
BELARMINO, MARILOU
DAVID, REICHELL
LAYSON, FATIMA
PEREZ, MARY GRACE
PRINCILLO, PAOLO
WALI, NORJIANAH