Financial Stability

Financial Stability
• Is not about being rich but rather more of a
mindset. It is a living a life without worrying
about how to pay the next bill, and becoming
stress-free about money while focusing energy
on other parts of life(Silva, 2019)
10 Strategies in Reaching
Financial Stability
Babauta(2007)
1.Make Savings Automagical
• Saving should be made a top priority, especially as an emergency fund
and a bill payment from the amount are automatically transfer from
checking account, like an online savings account.
2.Control your impulsive Spending
• Control yourself from impulsive spending on eating out, shopping and
online purchases that may ruin your finances and budget
3. Evaluate your Expenses and Live Frugally
• Analyze how you spend your money, see what you can reduce and
determine expenses that are necessary and eliminate the
unnecessary
4. Invest in your Future
• Start preparing and investing for your future retirement while still
young in your career fiend.
5. Keep your Family Secure
• Save for an emergency fund, so that you have something to spend if
anything happens with the family emergently
6. Eliminate and Avoid Debt
• Eliminate credit cards, personal loans, or other debt form as it will not
work on you but even pull you down and make you drowned with
obligations that may even resort surrendering your properties,
jewelry and investment as payment
7. Use the Envelope System
• Set aside three amounts in your budget each payday, withdraw those
amounts and put them in three separate envelopes. In that way, you
can easily track how much remains for each of the expenses or if you
already run out of money
8. Pay Bills Immediately
• One good habit is to pay bills as soon as they come in and try not to
get your bills to be paid through automatic deduction
9. Read about Personal Finances
• The more you educate yourself, the better your finances
10. Look to Grow your Net Worth
• Do whatever you want to improve your net worth, either by reducing
your debt, increasing your savings, or increasing your income, or all of
the above.
Signs of Being Financially Stable
by: Rose(2019)
1. You Never Overdraw Your Checking Account
2. You Don’t Lose Sleep Over Finances
3. You Use Credit Cards for Convenience and Rewards – But Never Out of
Necessity
4. You Don’t Worry About Losing Your Job
5. You’re Never Late With Payments
6. You Pay Your Bills Ahead of Time
7. People Ask Your Opinion About Financial Matters and we inspire them
8. You’re Generally Happy With Your Financial Situation
9. You Have No Ugly Credit Card Balances
10. You Finance Your Cars Over Five Years or Less – If You Take Loans at All
11. You Contribute a Double-Digit Percentage of Your Pay To Retirement
12. You Don’t Feel Guilty When You’re Out For Special Occasions
13. You Can Afford to Buy the Things You Really Want
14. Recreational Spending Doesn’t Appeal to You
15. You’re a Natural Saver
16. You’re Generous With Money When it Comes to Charities or Helping Others
17. You’re Confident About Your Future
18. Your Net Worth Grows Significantly From Year to Year
19. You Have Substantial Equity in Your Home
20. You Consistently Live Beneath Your Means
21. A Large Pay Cut Wouldn’t Destroy Your Life
22. The Cost of Sending Your Kids to College Doesn’t Scare You
23. You’re Totally Unconcerned With Keeping Up With the Joneses
24. You Give 100% on the Job – Financial Concerns Don’t Distract You
25. You Pay Your Credit Cards in Full Each Month
26. You Could Survive For Months Without a Paycheck
27. You Feel In Control of Your Finances – Never Dominated by Them
Integrating Financial Literacy into the
curriculum
• Financial education in schools should be part of a collaborative national
strategy to ensure relevance and long-term sustainability
• In support, Barry (2003) underscored that financial literacy has a wide
repercussion outside the family circle and more precisely.
• Moreover, there should be a learning framework, which sets out goals,
learning outcomes, content, pedagogical approaches, resources and
evaluation plan
• Financial education should ideally be a core part of the school curriculum
• Teacher should be adequately trained and resourced, made aware of the
importance of financial literacy and relevant pedagogical methods and they
should receive continuous support to teach it or integrate in their lesson