BENLAC FINANCIAL LITERATURE PROFESSIONAL

BENLAC Financial Literature

1. Financial Literacy

2. “Money is the root of all evil” - 1Timothy 6:10 2

3. 3 Objectives At the end of the lesson, the students are expected to; understand what the importance of Financial Literacy is to their lives; and equip the students on how to manage their money today properly, so for their future, they are already street smart.

4. 4 The 7 Deadly Sins

5. 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 5

6. 6 Importance of Financial Literacy

7. - It is an important tool to improve the financial capability of our youth and communities. - Students should be taught how to handle money—both at home and in school. This will help reduce the economic impact of the long-term recession that now grips many communities across the country. 7

8. Five Principles of Money Management Earn (Understand your pay and benefits) 2. Save & Invest (Set goals and start small) 3. Protect (Emergency savings and adequate insurance) 4. Spend (Shop around and compare prices/products) 5. Borrow (Build credit, but understand interest) 8

9. - - Is a conscious and deliberate way of setting aside a portion of the personal income . Savings 9

10. Equation to Budget your Money Traditional Way Salary – Expense = Savings Baon (P200) Fare (P50) Food (Lunch and Snacks) = Savings 10 Salary – Savings = Expense Baon (P200) Savings (P100) = Expense (P100) Modern Way

11. 11 The benefits of having a sound financial plan; It can help you avoid mistakes/sidetracks. Helps you make smarter decisions. Can insulate you from the turbulence in the economy. Makes money work for you. Financial Planning

12. 12 Assets and Liabilities

13. Assets 13 - an  asset  is any resource owned by the business. - Anything tangible or intangible that can be owned or controlled to produce value.

14. Liabilities 14   -an obligation to or something that you  owe  somebody else. - Liabilities are defined as a company's legal financial debts or obligations that arise during the course of business operations. -it is settled over time through the transfer of economic benefits including money, goods, or services.

15. 15 Wants Needs

16. 16 Why is it so hard to save?

17. 17 Procrastination – delaying savings or putting savings off for another time; Poor Spending Habits – includes spending on unnecessary items; impulse buying; hedonistic lifestyle; Culture Dependency – being overly dependent on others; Lack of Financial Literacy – spending liabilities or items that decrease value over time; not knowing how your money will grow or work for you.

18. What do you think is the reason why there are alot of Teacher’s who retire poor? 18