Let’s Play

TWO
TRUTHS
AND A LIE
TWO TRUTHS
AND A LIE!
How to Play?

The class will be group into 4 and they will

be given a bond paper and marker to write
their answer.

The teacher will share three statements

about finance—two that are true and one
that is a lie.

The group has to guess which statement is

false.
• The average American household carries over
$6,000 in credit card debt.

• It’s generally better to save for retirement in a tax-

advantaged account like a 401(k) or IRA than in a
regular savings account.

• You can borrow from your retirement account

without penalties at any time.
Answer:

• False: You can borrow from your retirement

account without penalties at any time.
• A credit score ranges from 300 to 850.

• Your credit score can impact your ability to get a

loan, the interest rate, and sometimes even your
job prospects.

• Checking your own credit score will lower it.

Answer:

• False: Checking your own credit score will lower it.

• Compound interest can help your savings grow
faster than simple interest.

• Saving early in life can result in more wealth in the

long term due to the power of compound interest.

• Interest on a mortgage is always tax-deductible.

Answer:

• False: Interest on a mortgage is always tax-

deductible.
• An emergency fund should ideally cover 3 to 6
months of living expenses.

• It’s a good idea to have an emergency fund before

paying off non-mortgage debt.

• An emergency fund should only be in the form of

cash, and investing it in stocks is not a good
option.
Answer:

• False: An emergency fund should only be in the

form of cash, and investing it in stocks is not a
good option.
• Inflation erodes the purchasing power of your
money over time.

• Historically, the stock market has outpaced

inflation over long periods.

• Inflation only affects the price of food and gas.

Answer:

• False: Inflation only affects the price of food and

gas.
 • Define financial
literacy.

Learning • Distinguish among

financial plan,
Objectives budgeting, saving,
spending and
At the end of the lesson, investing.
students should be able • Determine ways on
to: how to integrate
financial literacy in
the curriculum.
FINANCIAL
L I T E R A C Y
 F I LNI TAEN C I
R A C Y
A L
It is the ability to make
informed judgments and make
effective decisions regarding
the use and management of
money. Hence, teaching
financial literacy yields better
financial management skills.
FINANCIAL
P L A N
 FINANCIAL
P L A N
Kagan (2019) defines a financial plan as a
comprehensive statement of an individual's long-
term for security and well-being and detailed
savings and investing strategy for achieving the
objectives.
 S T E P S I N C R E AT I N G A
FINANCIAL PLAN

1 . C A L C U L A T I N G 2 . D E T E R M I N I N G 3 .
N E T W O R T H C A S H F L O W C O N S I D E R I N G
T H E
Consider (1) assets that entail one's cash, Knowing where money goes every The core of a financial plan is the
property, investments, savings, jewelry and
month. It will help to see how much P R clearly
person's I O Rdefined
I T Igoals
E Sthat
is needed every month for may include:
wealth; and (2) liabilities that include credit
necessities, and the amount for
card debt, loans and mortgage.
savings and investment. (1) Retirement strategy
(2) Comprehensive risk
(3) Long-term investment plan and
(4) Tax reduction strategy.
 S T E P S I N C R E AT I N G A
FINANCIAL PLAN

1 . C A L C U L A T I N G
N E T W O R T H

Consider (1) assets that

entail one's cash, property, 2 . D E T E R M I N I N G 3 .
investments, savings, jewelry C A S H F L O W C O N S I D E R I N G
and wealth; and (2) liabilities Knowing where money goes every
T H E
The core of a financial plan is the
that include credit card debt, month. It will help to see how much
is needed every month for
P R clearly
person's I O Rdefined
may include:
I T Igoals
E Sthat
loans and mortgage. necessities, and the amount for
savings and investment. (1) Retirement strategy
(2) Comprehensive risk
(3) Long-term investment plan and
(4) Tax reduction strategy.
 S T E P S I N C R E AT I N G A
FINANCIAL PLAN

2 .
D E T E R M I N I N G
C A S H F L O W
Knowing where money goes
1 . C A L C U L A T I N G every month. It will help to 3 .
N E T W O R T H see how much is needed C O N S I D E R I N G
Consider (1) assets that entail one's
every month for necessities, T H E
The core of a financial plan is the
cash, property, investments, savings,
jewelry and wealth; and (2) liabilities
and the amount for savings P R clearly
person's I O Rdefined
may include:
I T Igoals
E Sthat
that include credit card debt, loans and investment. (1) Retirement strategy
and mortgage.
(2) Comprehensive risk
(3) Long-term investment plan and
(4) Tax reduction strategy.
 S T E P S I N C R E AT I N G A
FINANCIAL PLAN
3 . C O N S I D E R I N G
T H E P R I O R I T I E S

The core of a financial plan is

the person's clearly defined
2 . goals that may include:
1 . C A L C U L A T I N G
D E T E R M I N I N G
N E T W O R T H
C A S H F L O W (1) Retirement strategy
Consider (1) assets that entail one's (2) Comprehensive risk
Knowing where money goes every
cash, property, investments, savings, month. It will help to see how much is (3) Long-term investment plan
jewelry and wealth; and (2) liabilities
that include credit card debt, loans
needed every month for necessities, and
and the amount for savings and
and mortgage. investment. (4) Tax reduction strategy.
FINANCIAL GOAL PL ANNING

A N D S E T T I N G
 FINANCIAL GOAL PL ANNING

A N D S E T T I N G

Before investing the money, consider setting personal financial

goals. Financial goals are targets, usually driven by specific future
financial needs, such as saving for a comfortable retirement sending
children to college, or enabling a home purchase.
 FOUR KEY AREAS IN SETTING
I N V E S T M E N T G O A L S F O R
C O N S I D E R A T I O N
 A. Time horizon.
It indicates the time when the money will be
needed. To note, the longer the time horizon, the
more risky (and potentially more lucrative)
investments can be made.
 B. Risk tolerance.
Investors may let go of the possibility of a
large gain, if they knew there was also a
possibility of a large loss (they are called risk
averse) willing to take the chance of a large
loss if there were also a possibility of a large gain
(they are called risk seekers). The time horizon
can affect risk tolerance.
 C. Liquidity needs.
Liquidity refers to how quickly an investment
can be converted into cash (or the equivalent
of cash).
D. Investment goals: Growth, income and
stability.

When considering any investment, think about what

it offers in terms of three key investment goals: (1)
Growth, (also known as capital appreciation); (2)
Income, of which some investments make periodic
payments of interest and can be spent or reinvested;
and (3) Stability, or known as capital preservation
or protection of principal.
BUDGET AND
B U D G E T I N G
 BUDGET AND
B U D G E T I N G
A budget is an estimation of revenue and expenses over
specified future period of time and is usually compiled and
reevaluated on a periodic basis. Budgeting, on the other
hand, is the process of creating a plan to spend oney.
SPENDING
SPENDING
If budget goals serve as a financial wish list, a spending
plan is a way to make those wishes a reality. Turn them
into an action plan.
 P RA C T I C A L S T RAT E G I E S I N S E T T I N G
AND PRIORITIZING
UDGET GOALS AND SPENDING PLA
 1. Start by listing your goals.

Setting budget goals requires forecasting and discussing

future needs and dreams with the family.
2. Divide your goals according to how long it will
take to meet each goal.

Classify your budget goals into three categories:

• short-term goals (less than a year),

• medium-term goals (one to five years), and
• long-term goals (more than five years)
 3. Estimate the cost of each goal and
find out how much it costs.

Before assigning priority to goals, it is important to

determine the cost of each goal. The greater the cost of a
goal, the more alternative goals must be sacrificed in order
to achieve it.
 4. Project future cost.
For short-term goals, inflation is not a big factor, but for
medium and long-term goals, it is a big factor. To calculate
the future cost of the goals, there is a need to determine the
rate of inflation applied to each particular goal.
 5. Calculate how much you need to set aside
each period.

Upon knowing the future cost of the goals, next is to

determine how much to put aside each period to meet all the
goals.
 6. Prioritize your goals.
Upon listing down all the goals and the estimated amount
needed for each goal, prioritize them. This serves as guide in
decision-making.
 7. Create a schedule for meeting your goals.

It is important to lay down all the goals according to priority

with the corresponding amount of money needed, the time it
will be needed, and the installments needed to meet the
goals.
INVEST AND
I N V E S T I N G
 There are many ways you can invest your
money but consider four aspects:

How long will you How much of your

01. 03.
invest the money? investment are you willing
(Time Horizon to lose in the short-term in
order to earn more in the
long-term? (Risk Tolerance)
02. How much money do
you expect your 04. What types of
investment to earn investment interest
each year? you? (Investment
(Expectation of Type)
Return)
S AV I N G S
S AV I N G S
Savings will also help in buying things that are needed or wanted
without borrowing.

Emergency Savings Fund. Start as early, setting aside a little money

for emergency savings fund. If you receive a bonus from work, an
income tax refund or earnings from additional or side jobs, use them as
an emergency fund.
COMMON
FINANCIAL
SCAMS
TO AVOID
 A. PHISHING
Using this common tactic, scammers send an email that
appears to come from a financial institution, such a bank
and asks you to click on a link to update your account
information.
B. SOCIAL MEDIA
SCAMS
Scammers are adept at using social media to gather
information about the traveling habits of potential
victims.
 C. PHONE SCAMS
Another prevalent tactic is scamming phone calls. The
scammers pose as a government agency, such as the
Bureau of Internal Revenue or local law enforcement
agencies, and use scare tactics to acquire your
personal information and account numbers.
D. STOLEN CREDIT
CARD NUMBERS
There are numerous ways that scammers can obtain
your credit card information, including hacking,
phishing, and the use of skimming devices, such as
small card readers attached to unmanned credit card
readers (i.e. ATMs, gas pumps, and more).
E. IDENTIFY THEFT
Depending on the amount of information a Scammer
is able to obtain, identity theft may extend beyond
unauthorized charges on a debit or credit card.
 FINANCIAL
SCAMS AMONG
STUDENTS
FAKE DIPLOMA ONLINE BOOK CREDIT CARD
SCHOLARSHIP MILLS. SCAMS. SCAMS.
S.
FAKE
SCHOLARSHIP
S
While it is beneficial for students to apply for as
many scholarships, it is important to become
aware of related scams and frauds. Students
should thoroughly check scholarship sources
before applying to verify legitimacy. Never apply
for a scholarship that asks for money in return.
DIPLOMA
MILLS
There are schools that offer fake degrees and
diplomas in exchange of a fee. Check from
government education agencies the prospective
school to enroll in if it is government-recognized,
legitimate and accredited.
ONLINE BOOK
SCAMS
While students can often go for the best deals on
textbooks online, scammers can use this
opportunity to get students’ credit card
information. When buying anything online, be sure
to do it on a credible site.
CREDIT CARD
SCAMS
Oftentimes, credit card companies go to school
campuses to convince students to fill out card
applications. It is very important to visit a local
credit union or bank for credit card application.
Insurance
A N D T A X E S
Insurance
A N D T A X E S

Insurance is a contract (in the form of a policy) between

the policyholder and the insurance company, whereby the
company agrees to compensate for any financial loss from
specific insured events.
 1. Employer-Sponsored
Insurance.
THE FOLLOWING If working in a company with 50 or more full-
ARE CONCEPTS time employees, the employer is required to
RELATED TO provide employee-only insurance that meets
minimum guidelines. Examine the plan offered,
INSURANCE
AND TAXES THAT but do not pay over 9.66 percent of household

EVERY TEACHER income in premiums.

SHOULD KNOW: Marketplace Plans

Marketplace plans come in three tiers: bronze, silver
and gold. Generally, bronze plans offer the least
coverage at the lowest premiums, while gold plans
provide the most coverage at the highest price.
 Marketplace
Plans
THE FOLLOWING Marketplace plans come in three tiers: bronze,
ARE CONCEPTS silver and gold. Generally, bronze plans offer

RELATED TO the least coverage at the lowest premiums,

while gold plans provide the most coverage at
INSURANCE
AND TAXES THAT the highest price.

EVERY TEACHER
SHOULD KNOW:
 LIFE INSURANC
Life E
insurance is a type of insurance that
compensates beneficiaries upon the death of
the policyholder.
 TYPESLIFE INSURANCE
OF

1. ENDOWMENT 2. TERM
It grants a lump sum after a
It is the simplest form of life
specified amount of time or
insurance to obtain, of which
upon death. The policy owner
upon death, the beneficiaries
is required to pay the
are paid with the benefit.
premium for a predetermined
number of years or until a
specific age is reached.
 TYPESLIFE INSURANCE
OF
4. VARIABLE
3. WHOLE LIFE UNIVERSAL LIFE (VUL)
It provides coverage for the It serves as both life protection
policyholder’s entire life or and investment vehicle in one
until they reach 100 years package. A portion of the
old. It acts both as protection premium is allocated into various
investment vehicles for the
and savings mechanisms
purposes of wealth creation. The
since a portion of the
contract’s earnings are based on
premium is allocated to build
the performance of selected
up cash values.
investments.
FINANCIAL
STABILITY

Financial stability is not about being

rich but rather more of a mindset. It
is 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)
SIGNS OF
FINANCIALLY
BEING
STABLE
Rose (2019) presents
some signs of a
financially stable person:
1. You never overdraw your checking account.

2. You don’t lose sleep over finances.

3. You use credit card for convenience and rewards but never out of
necessity.
4. You don’t worry about losing your job.

5. You pay your bills ahead of time.

6. People ask your opinion about financial matters and you inspire them.

7. You’re generally happy with your financial situation.

8. You finance your cars over five years or less if you take loans at all.

9. You contribute more to your retirement.

10. You don’t feel guilty when you’re out for special occasions.
11.
. You can afford to buy the things you really want.

12. Recreational spending doesn’t appeal to you.

13. You’re a natural saver.

14. You’re generous with money when it comes to charities or helping o

15. You’re confident about your future.

16. Your net worth grows significantly from year to year.

17. You have substantial equity in your home.

18. You consistently live beneath your means.

19. You could survive for months without a paycheck.

20. You feel in control of your finances and 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. The education
system and profession should be involved in the development of the
strategy.

Financial education should ideally be a core part of the school

curriculum. It can be integrated into other subjects like mathematics,
economics, social studies, technology and home economics, values
education and others.
Tapos na lay!
AYA W L AY !