Marriage, Family AND Financial Management: Home of The Professionals

MARRIAGE, FAMILY
AND
FINANCIAL MANAGEMENT
HOME OF THE PROFESSIONALS

OBJECTIVE
 Cite and explain the different societal and legal
provisions upholding marriage and family
 State and discuss the obligations of espouse in
marriage and family, and the role of the family in
the society
 State and discuss the different aspect governing
financial management
 Relate the importance of sound financial
management in healthy marital affair and good
career

SCOPE
 MARRIAGE AND FAMILY

 FINANCIAL MANAGEMENT

MARRIAGE AND FAMILY
“All happy families resemble one

another, each unhappy family is
unhappy in its own way.”
Leo Tolstoy

MARRIAGE AND FAMILY
INTRODUCTION:
 Marriage is considered to be the most
important ritual in our society
 The union of two people as husband and
wife requires social approval
 Marriage ensures the continuity of our
culture through the creation of family
 It is through it that ties are created,
families and clans are united

MARRIAGE AND FAMILY
EXECUTIVE ORDER NO. 209 (FAMILY CODE
OF THE PHILIPPINES)
MARRIAGE
 Article 1, Chapter 1: Marriage is a special
contract of permanent union between a
man and a woman entered into in
accordance with law for the establishment
of conjugal and family life
 It is the foundation of the family and an
inviolable social institution.(52a)
MARRIAGE AND FAMILY
OF THE PHILIPPINES)
ASPECTS OF MARRIAGE
 It is a contract permanent in nature
 Marriage is between a man and a woman
intending to establish a family and
conjugal life
 Marriage is governed by law

MARRIAGE AND FAMILY

OF THE PHILIPPINES)
WHY INVIOLABILITY OF MARRIAGE?

 Marriage is inviolable or unbreakable
because marriage and family life have
social implications that is why it is a
special contract governed by law

MARRIAGE AND FAMILY
SECTIONS 1 AND 2 OF ARTICLE XV OF THE
PHILIPPINE CONSTITUTION
 Section 1. The State recognizes the Filipino
family as the foundation of the nation.
Accordingly, it shall strengthen its
solidarity and actively promote its total
development.
 Section 2. Marriage, as an inviolable social
institution, is the foundation of the family
and shall be protected by the State.

MARRIAGE AND FAMILY
RESPONSIBILITIES OF BOTH SPOUSES
 Art. 68. The husband and wife are obliged to live

together, observe mutual love, respect and
fidelity, and render mutual help and support.
(109a)

MARRIAGE AND FAMILY
 Art. 70. The spouses are jointly responsible for the
support of the family. The expenses for such
support and other conjugal obligations shall be
paid from the community property and, in the
absence thereof, from the income or fruits of their
separate properties. In case of insufficiency or
absence of said income or fruits, such obligations
shall be satisfied from the separate properties.
(111a)

MARRIAGE AND FAMILY

 Art. 71. The management of the household shall
be the right and the duty of both spouses. The
expenses for such management shall be paid in
accordance with the provisions of Article 70.
(115a)

MARRIAGE AND FAMILY
FAMILY
 Article 15, of the Philippine Constitution
and article 149 of the family Code of the
Philippines recognize the Filipino family as
the foundation of the nation and as a basic
social institution

MARRIAGE AND FAMILY
PHILIPPINE CONSTITUTION
 SEC. 1. Article 15. The State recognizes the
Filipino family as the foundation of the
nation. Accordingly, it shall strengthen its
solidarity and actively promote its total
development.

MARRIAGE AND FAMILY
FAMILY CODE
 Art.149. The family, being the foundation of
the nation, is a basic social institution
which public policy cherishes and
protects. Consequently, family relations
are governed by law, and no custom,
practice or agreement destructive of the
family shall be recognized or given effect.

MARRIAGE AND FAMILY
THE FILIPINO FAMILY
 Institution that truly works in the Philippine
society
 claim of having the, loyalty and allegiance
of its individual members and influence
over them

MARRIAGE AND FAMILY
WHAT IS A FILIPINO FAMILY?

 used to be nuclear when composed of
mother, father and the children;
 extended when living with grandparents
and other relatives
 described as being basically nuclear but
functionally extended

MARRIAGE AND FAMILY
TWO MAJOR ROLES OF THE FAMILY IN THE
SOCIETY
1. Primary educating community
 Learning starts at home
 It is the basic school of social living
2. Social, cultural and ideological stabilizer
 Child rearing and upbringing involves the
gradual introduction to culture and religion

INTRODUCTION
 An important principle is that it makes a
difference as to how you manage your
money
 Money management will always involve
choices

SUCCESS IN MONEY MANAGEMENT
REQUIRES COOPERATION OF THE ENTIRE
FAMILY
 Spender and the saver
 Successful money management requires
that couples work together and develop a
spending plan (sharing, saving, spending)
in support of mutually agreed goals

 Can be defined as managing the finance
(funds)
 Basically, it is related with acquisition and
utilization of the funds

BASIC FINANCIAL MANAGEMENT
 Financial management is a lifelong process
that involves:
 Setting financial goals
 Understanding your income sources
 Creating a budget to manage expenses
and minimize debt

 Financial management is a lifelong process
that involves:
 Saving and investing regularly
 Protecting your assets with insurance,
wills and powers of attorney

1. Setting financial goals
a. Short-Term Goals – 3 years or less
b. Intermediate Goals – 4 to 6 years
c. Long-Term Goals – 7 years or more

Example of Finance Goals List
FINANCIAL GOALS WORK SHEET
Short Term Goal Intermediate Long Term
Goal Goal
Goals 3 Years or Less 4-6 Years 7 Years or
More
Time P Needed Time P Needed Time P Needed
New home DP 3 yrs 125,000.00

College 5 yrs P60,000
Funds

2. Understanding Your Pay
a. Base pay/long pay and allowances makes up
the largest portion of what you earn
b. Incentive pay
c. Gross pay is the total amount of your base
pay/long pay and allowances

d. Deductions taken from wage earners’ gross
pay include:
 BIR - Withholding Tax
 PHIC – Medicare
 MDMF – Premium
 MBAI – Dues/SGTI
 RSBS Contribution

 Other deductions that you may request
such as savings or insurance payments
e. Net Worth - Use the Personal Financial
Statement to calculate your current net worth

Personal Financial Statement
Pay and Allowances Amount
Base Pay
Long Pay
Quarters Allowance
Clothing Allowance
Subsistence Allowance
Hazardous Pay
PERA
Laundry Allowance
Additional Allowance
Total Gross Pay
Personal Financial Statement
Monthly Deduction Amount
PHIC - Medicare
HDMF - Premium
BIR W/Tax
MBAI Dues/SGTI
RSBS Contribution
Total Deduction
Summary
Total Gross Pay
Less Total Deduction
Net Worth

3. Evaluate Your Income
a. Create a Spending Plan - Use the Budget Work
Sheet to record the amounts you plan to
spend for the month

Budget Worksheet
Planned
Net Worth for the month of_________
Expenditures
Food
Rent/Mortgage Payment
Property Taxes
Phone/Cell Phone
Others
Tuition
Room/Board/Travel
Books/School Supplies/Uniforms

Budget Worksheet
Planned
Expenditures
Others
Vehicle Payment
Auto Insurance
Gasoline/Parking/Tolls
Registration/License Fees
Public Transportation
Loan(s)
Clothing

Budget Worksheet
Planned
Expenditures
Dry Cleaning/Laundry
Grooming (hair care, toiletries, etc.)
Other
Vacation(s) (1/12 of total annual expense)
Hobbies (Example: recreational fees)
Cable/Satellite Television
Others
Church

Budget Worksheet
Planned
Expenditures
Charity
Savings/Investments
Emergency Fund
Net Monthly Income

Less Total Monthly Expenses
Net Cash Flow

3. Evaluate Your Income
b. Improve Your Cash Flow
 Save for purchases you cannot fit into your
budget
 Do not buy something not included in your
budget, unless you can substitute a
planned item for it.
 Wait for sales.

Income and Expense Summary
Monthly Income
Other income
TOTAL INCOME
Monthly Expenses
Taxes
Shelter
Mortgage/rent
Property tax
Electricity
Monthly Income
Gas
Water
Household maintenance
Insurance
Transportation
Vehicle payments
Vehicle payments
Fuel
Vehicle maintenance
Tolls
Monthly Income
Public transportation
Food
Groceries
Outside meals
Snacks
Other
Personal Health and

Grooming
Clothing

Medical and dental care
Hair care
Toiletries
Recreation
Hobbies
Vacation
Entertainment
Newspaper/magazines/books
Cable/satellite TV
Internet access

Financial
Life insurance
Health insurance
Disability insurance
Other insurance
Education/Professional
Development
Child care
Tuition
Allowances

Others
TOTAL EXPENSES
Summary
TOTAL INCOME
LESS TOTAL EXPENSES
TOTAL CASH FLOW

4. Analyze Your Resources
 look at your financial foundation
 a strong foundation begins with an emergency
fund
 savings usually ranges from 3-6 months worth
of living expenses
 The primary purpose of an emergency fund is
to carry you to cover unexpected expenses
 buy insurance for these costly emergencies

 buy insurance for these costly emergencies
a. Life Insurance
b. Disability Insurance
c. Health Insurance
d. Property Insurance

 With a will:
 You designate who receives your property
when you die.
 You can appoint a guardian for your minor
children.
 You can provide financial security for your
spouse and children.
 You can leave money to a worthy cause.

 With a Power Of Attorney
 A power of attorney allows you to give
another individual the legal authority to act
on your behalf for a designated purpose

5. Save for Your Goals
 Use the Savings Goals Work Sheet to identify
the gaps between your financial goals and
your resources
 Steps:
a. Goals
b. Target Dates
c. Amount Needed
d. Current Assets
 Use the Savings Goals Work Sheet to identify
the gaps between your financial goals and
your resources
 Steps:
e. Gap
f. Number of Years to Target Date
g. Amount to be Saved each Year

Savings Goals Worksheet
Goal P125,000
Target Date 01 Jan 2012
Current Asset P2,000
Number Of Years To Target Date 3 years
Gap P123,000
Amount To Be Saved Each Month P3,417
Amount To Be Saved Each Year P41,000

 Finding The Gaps
• Are you paying yourself first with a
disciplined savings and investment
program that puts away at least 10 percent
to 15 percent of your net income?
• Could you increase the amount you are
saving?
• Could you earn more and/or spend less?

 Finding The Gaps
• Are you spending too much on impulse
purchases and neglecting long-term
savings goals?
• Are your goals too ambitious?
• Could you change or eliminate any of your
goals?

6. Plan Ahead
a. Your Savings Plan
• Saving refers to accumulating money
safely in a bank savings account for short-
term needs
• Simple interest
• Compound interest
• Save regularly and systematically

6. Plan Ahead
a. Your Savings Plan
• Saving refers to accumulating money
safely in a bank savings account for short-
term needs
• Begin investing as soon as you have
accumulated enough money
• Increase savings contributions when
you can

6. Plan Ahead
b. Your Investment Plan
• Investing refers to buying investments
such as stocks, bonds or mutual funds that
promise higher long-term returns but can
decline in value

6. Plan Ahead
 Basic Principles of Investing
• setting goals
• developing strategies
• selecting the most appropriate
investments
• handling risks prudently and finding
professionals to help when needed
6. Plan Ahead
 Focusing Your Investment Strategy
 Invest for the long term
 Use time not timing
 Increase your knowledge
 Diversify
 Evaluate your investment plan

7. Update Your Plan
 Review your plan. Compare what you actually
spent to the amounts you planned to spend
 Re-evaluate your life-long goals and anticipate
economic factors that affect your plan

DEPT MANAGEMENT
 DEBT is a double-edged sword
 Borrowers can use debt to pay for a vehicle, home
or college education

DEPT MANAGEMENT
1. DEBT CATEGORIES
 Secured debts are those that require you to
pledge collateral to back up your promise to
pay
• Collateral is something of value, which
lenders can repossess if you fail to make
payments on their terms.
 Unsecured debts have no collateral, only the
promise you give them to repay the loan in full

DEPT MANAGEMENT
2. TYPES OF DEBT
 Mortgages - is a secured debt that facilitates
the purchase of a home
 Home Equity Loans - is the difference between
the market value of your home and the amount
of your mortgage debt
 Vehicle Loans - these loans are used to
facilitate the purchase of vehicles

DEPT MANAGEMENT
2. TYPES OF DEBT
 Signature Loans - is an unsecured debt
• the only security the lender has is the
promise of the borrower as evidenced by a
signature

DEPT MANAGEMENT
3. GETTING OUT OF DEBT
 Step 1: Involves writing down all outstanding
loans
 Step 2: Concentrate completely paying off the
balances
 Step 3: Once the first loan is completely paid
off, concentrate on the next debt

DEPT MANAGEMENT
3. GETTING OUT OF DEBT
• Example: if the minimum payment on the
first position was P150; the extra amount
you’ve been paying is P50, and the
payment for the second debt is P150, then
your monthly payment to the second debt
would be 350 (150 + 50 + 150 = P350)
 Step 4: Continue using this strategy until all
loans are completely paid off

DEPT MANAGEMENT
4. WHAT SHOULD I DO WHEN I CAN’T PAY A BILL?
a. Begin by contacting your creditors. Don’t wait
for them to contact you. Visit creditors in
person if you can.
b. Be prepared to explain:
 Why you fell behind in payments
 Current income
 Other obligations
 Plans to bring this debt up-to-date
DEPT MANAGEMENT
c. Work with your creditor to agree on a payment
you can both live with
• Your choices might be:
• Reducing the monthly payment
• Refinancing the loan
• Reducing or dropping late charges or
interest rates

DEPT MANAGEMENT
c. Work with your creditor to agree on a payment
you can both live with
• Paying interest only, until you can resume
making monthly payments
• Voluntarily giving back an item you
purchased on credit
• Selling the item and using the cash to
satisfy, or partly satisfy, the debt

RETIREMENT PLANNING
 The best time to begin planning for retirement is
now. Why start so young?
• The earlier you begin, the more you can save
• Beginning early gives investments more time
to grow
• You cannot foresee how long you will be able
to work
• You do not know how long retirement will be

RETIREMENT PLANNING
 Tips and information to help you:
• Develop good financial habits
• Set retirement goals
• Understand and make the most of retirement
income sources
• Protect your financial future with insurance,
wills and powers of attorny

RETIREMENT PLANNING
 Tips and information to help you:
• Once you understand retirement planning
basics, the best way to achieve your
retirement dreams is to begin planning and
saving now

RETIREMENT PLANNING
1. Get Off To A Good Start
• Monitor expenses, and spend within a monthly
budget
• Avoid unnecessary loans.
• Keep 3 to 6 months of basic living expenses in
a short-term savings account
• Contribute the maximum allowable amount to
any retirement plan

RETIREMENT PLANNING
1. Get Off To A Good Start
• Save beyond employer - or government-
sponsored plans by contributing to an IRA or
other personal retirement account.
2. Develop Good Financial Habit
• Think of saving as a bill you have to pay
• Pay yourself first
• Saving, the longer the better

RETIREMENT PLANNING
3. Set Goals
• What do you want to do in retirement?
• When do you want to retire? Optional or
compulsory?

RETIREMENT PLANNING
3. Set Goals
• What Do You Want To Do?
 Do you expect to work during retirement? If
you work, will it be part-time, or will you
begin a new, full-time career?
 Will you own your home or still have
mortgage payments?
 Will you pursue hobbies? Are they costly?

RETIREMENT PLANNING
3. Set Goals
• When Will You Retire?
 Optional or compulsory retirement?
• How Much Will You Need?
 you will need from 70% to 90% of your
current income

RETIREMENT PLANNING
3. Set Goals
• Safeguard Your Financial Future
 Property Insurance
 Health Insurance
 Life Insurance
 Disability Insurance
 Wills
 Powers Of Attorney

ANY QUESTION?

SUMMARY
 MARRIAGE AND FAMILY
 FINANCIAL MANAGEMENT

Marriage, Family AND Financial Management: Home of The Professionals

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MARRIAGE, FAMILY

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

 MARRIAGE AND FAMILY

HOME OF THE PROFESSIONALS

“All happy families resemble one

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

EXECUTIVE ORDER NO. 209 (FAMILY CODE

WHY INVIOLABILITY OF MARRIAGE?

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

 Art. 68. The husband and wife are obliged to live

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

RESPONSIBILITIES OF BOTH SPOUSES

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

WHAT IS A FILIPINO FAMILY?

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

New home DP 3 yrs 125,000.00

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

Net Monthly Income

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HOME OF THE PROFESSIONALS

Personal Health and

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HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

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HOME OF THE PROFESSIONALS

HOME OF THE PROFESSIONALS

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