Financi

al
Literac
 Ag enda
• KEY TOPICS DISCUSSED
IN THIS PRESENTATION

• What is Financial
Literacy
• Budgeting Basics
• Impact of Interest
Staying
• Savvy by Saving
Credit-Dept Issues
• Identity Theft Issues
and Safety
What is Financial Literacy?
•is the ability to use knowledge and skills to manage
financial resources effectively for a lifetime of financial
wellbeing. Or the ability to make informed judgments
and make effective decisions regarding the use and
management of money.
•it's also a core life skills in an increasingly complex
world where people need to take charge of their own
finances, budget, financial choices, managing risks,
savings, credit, and financial transactions.
Is financial literacy important to us? Or is financially
literate one of the solutions to prevent such losses while
achieving financial security and freedom?

• YES, but only if it is backed up with actions that lead to behavior changes.
• When such knowledge leads to action and changes in behavior, we can say
that financial education turns into financial literacy.
5 Financial
Improvement Strategies
1.Identify your starting
point.
2.Set your priorities.
3.Document your spending.
4.Lay down your dept.
5.Secure your financial
1.Budgeting Basics
2.Impact of Interest
3. Staying Savvy By Saving
4.Credit-Dept Issues
5.Identity Theft Issues and
Safety
1. Budg eting
Basics
What is Budgeting?
Budgeting is creating a plan to spend your money.
the fundamental step in achieving financial
literacy, and by extension, reaching financial
security and freedom.
 Step 1: Set Realistic
Goals.

Goals for your money will help you make smart spending choices.

Step 2: Identify Income and Expenses.

7 Steps to Once you have established some goals for your money, it’s time to look

Good at where it comes from and where it goes right now.

It’s easy and you might be amazed by what you find out

Budgeting Step 3: Separate N eeds from W ants.

Set clear priorities for yourself and the decisions become easier to make
by identifying wisely those that are really needed or just want.
 Step 4: D esig n your Budg et.

Make sure that you are not spending more than you make. Balance your budget to accommodate everything
you need to pay for.
7 Steps to Good

Step 5: Put your Plan into

Action.
Budgeting

Match your spending to when you receive your income. Decide ahead of time what you’ll use each
payday. Non- reliance to credit for the living expenses will protect one from dept.

Step 6: Plan your Seasonal Expenses.

Set money aside to pay for these expenses so you can afford them without going into debt.

Step 7: Look Ahead.

Having a stable budget can take a month or two. Don’t be afraid to ask for help if things aren’t falling
into place.
2. Impact of
Interest
As interest rates increase, the cost
of borrowing money becomes
more expensive.
This makes buying certain goods and
services, such as homes and cars,
more costly. This in turn causes
consumers to spend less, which
reduces the demand for goods and
services.
3. Staying Savvy by
Saving
A financially savvy person is well
versed in dealing with expenditures,
credit and other money matters.
While this term can mean many
different things to different people,
the overall idea of being savvy
financially focuses on one concept:
maintaining a healthy financial
standing through proper planning and
budgeting.
Here are just a few
ways:
• Track your spending. As any behaviorist knows, it's
important to know your habits before you can
change them. ...
• Make a budget. Based on your spending, create a
monthly budget. ...
• Think small. ..
• Think big. ..
• Borrow less and pay the interest. ...
• Invest the money you save. ...
• Save for retirement.
 4.
Why have a credit card?
Credit- Debt Issues
A credit card is a powerful financial too
l with div erse adv antages, especially for
building your credit history.
At the same time though, it should
be managed v ery carefully, becaus
e it may
c a u s e y o u t o s p e n dm o r e money than your
b u d g e t a l l o w s . T ob e c o m e financially
secure it is necessary to learn how
to manage your credi
t cards wisely.
Advantages of using Credit
Card
The use of a credit card, instead
of cash or personal funds, offers
the following advantages:
Building credit history.
A quick source of funds in an
“absolute” emergency.
No accrued interest if bill is
paid
on time and in full each month.
Zero liability as consumers is not
responsible for fraudulent charges
when reported promptly.
Consumer protection.
Disadvantages of using
Credit Card
Along with the advantages listed
above, the use of credit cards can
also have several disadvantages:
Established credit-worthiness needed
before getting a credit card.
Encouraging impulsive and
unnecessary “wanted” purchases.
High-interest rates if not paid in full by
the due date.
Annual fees for some credit cards – can
become expensive over the years.
Fee charged for late payments.
Negative effect on credit history and
credit score in case of improper usage.
 4.
What is a Dept Issue?
Credit- Debt Issues
A d e b t i s s u e r e f e r st o a f i n a n c i a l oblig
ation that allows the issuer to raise
funds by
promising to repay the lende
r a ta c e r t a i n p o i n t i n t h e f u t u r e a n
d in accordance with the terms
of the contract.
D e b t i n c r e a s e st h e c o s t o f everyday i
tems as people make ends meet by u
s i n g d e b t t o p a y m o r e f o ri t e m s t h a t w o
 5. Identity Theft
Issues and Safety
What is Identity
Theft?
Identity theft happens when som
eone uses your legal name, credit
card number, social securi
ty number, passwords o rp i n
s of your financial accounts, t
o make purchases, get cash orc
ommit f raudin your name.
How to protect my Identity from theft?

1.Secure your mailbox.

2.Buy a criss-cross shredder.
3.Use the internet safely.
4.Stay in control of your
inquiries.
5.Check your credit
report regularly.
 “Money without financial
intelligence is money soon
gone.” – Robert Kiyosaki

Thank you and God Bless!!