Learning Objectives:

At the end of the session, the participants are expected to:

1. Define financial literacy

2. Understand the financial terms
3. Value the importance of financial literacy
4. Apply the concepts in budgeting and financial
management
What is Financial Literacy?
 Financial Literacy
It is the education and understanding
of various financial areas including topics
related to managing personal finance,
money and investing.
Source: Investopedia
Financial Terms 1 B
Across
1. An organization that invests and lends money
5 2. Money owed to another person or to a company
2 T 3. Money that is taken off the price of something
4. The difference between the value of a person’s property and
2 the amount of mortgage they still have to pay
3 D T 5. An account in a bank, building society or company, that allows
a person to build up the value of money through interest
4 E Y
4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
how much money a person has
2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
5 2. Money owed to another person or to a company
2 T 3. Money that is taken off the price of something
4. The difference between the value of a person’s property and
2 the amount of mortgage they still have to pay
3 D T 5. An account in a bank, building society or company, that allows
a person to build up the value of money through interest
4 E Y
4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
how much money a person has
2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
5 2. Money owed to another person or to a company
2 T 3. Money that is taken off the price of something
4. The difference between the value of a person’s property and
2 the amount of mortgage they still have to pay
3 D T 5. An account in a bank, building society or company, that allows
a person to build up the value of money through interest
4 E Y
4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
how much money a person has
2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D T 5. An account in a bank, building society or company, that allows
a person to build up the value of money through interest
4 E Y
4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
how much money a person has
2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D T 5. An account in a bank, building society or company, that allows
a person to build up the value of money through interest
4 E Y
4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
how much money a person has
2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D T 5. An account in a bank, building society or company, that allows
a person to build up the value of money through interest
4 E Y
4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
how much money a person has
2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D T 5. An account in a bank, building society or company, that allows
a person to build up the value of money through interest
4 E Y
4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
how much money a person has
2. Money that a bank, building society or a lending company
has lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D C T 5. An account in a bank, building society or company, that allows
R a person to build up the value of money through interest
4 E Y
D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
T how much money a person has
2. Money that a bank, building society or a lending company
has lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D C T 5. An account in a bank, building society or company, that allows
R a person to build up the value of money through interest
4 E Y
D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
T how much money a person has
2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that allows
R a person to build up the value of money through interest
4 E Y
D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
T how much money a person has
2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that allows
R a person to build up the value of money through interest
4 E Y
D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
T how much money a person has
2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an
ATM card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that allows
E R a person to build up the value of money through interest
P 4 E Y
O D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
I T how much money a person has
T 2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an
ATM card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that allows
E R a person to build up the value of money through interest
P 4 E Y
O D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
I T how much money a person has
T 2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that allows
E R a person to build up the value of money through interest
P 4 E Q U I T Y
O D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
I T how much money a person has
T 2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that allows
E R a person to build up the value of money through interest
P 4 E Q U I T Y
O D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
I T how much money a person has
T 2. Money that a bank, building society or a lending company has
lent a person to buy goods or services
3. A type of savings account which pays interest without an ATM
card or a cheque book
4. Stocks, shares, debentures and so on that involve a right to
receive interest or dividends from the investment
5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that allows
E R a person to build up the value of money through interest
P 4 E Q U I T Y
O D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
I T E how much money a person has
T C 2. Money that a bank, building society or a lending company has
U lent a person to buy goods or services
R 3. A type of savings account which pays interest without an ATM
I card or a cheque book
T 4. Stocks, shares, debentures and so on that involve a right to
I receive interest or dividends from the investment
E 5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that
E R allows a person to build up the value of money through interest
P 4 E Q U I T Y
O D 4 Down
5 S I S 1. A plan of spending over a certain length of time, based on
I T E how much money a person has
T C 2. Money that a bank, building society or a lending company has
U lent a person to buy goods or services
R 3. A type of savings account which pays interest without an ATM
I card or a cheque book
T 4. Stocks, shares, debentures and so on that involve a right to
I receive interest or dividends from the investment
E 5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that
E R allows a person to build up the value of money through interest
P 4 E Q U I T Y
O D 4 Down
5 S A V I N G S 1. A plan of spending over a certain length of time, based on
I T E how much money a person has
T C 2. Money that a bank, building society or a lending company has
U lent a person to buy goods or services
R 3. A type of savings account which pays interest without an ATM
I card or a cheque book
T 4. Stocks, shares, debentures and so on that involve a right to
I receive interest or dividends from the investment
E 5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G 4. The difference between the value of a person’s property and
2 E the amount of mortgage they still have to pay
3 D I S C O U N T 5. An account in a bank, building society or company, that allows
E R a person to build up the value of money through interest
P 4 E Q U I T Y
O D 4 Down
5 S A V I N G S 1. A plan of spending over a certain length of time, based on
I T E how much money a person has
T C 2. Money that a bank, building society or a lending company has
U lent a person to buy goods or services
R 3. A type of savings account which pays interest without an ATM
I card or a cheque book
T 4. Stocks, shares, debentures and so on that involve a right to
I receive interest or dividends from the investment
E 5. Someone who buys and sells financial instruments such as
S stocks and shares.
Financial Terms 1 B A N K
Across
1. An organization that invests and lends money
U 5 2. Money owed to another person or to a company
2 D E B T 3. Money that is taken off the price of something
G R 4. The difference between the value of a person’s property and
2 E A the amount of mortgage they still have to pay
3 D I S C O U N T D 5. An account in a bank, building society or company, that allows
E R E a person to build up the value of money through interest
P 4 E Q U I T Y R
O D 4 Down
5 S A V I N G S 1. A plan of spending over a certain length of time, based on
I T E how much money a person has
T C 2. Money that a bank, building society or a lending company has
U lent a person to buy goods or services
R 3. A type of savings account which pays interest without an ATM
I card or a cheque book
T 4. Stocks, shares, debentures and so on that involve a right to
I receive interest or dividends from the investment
E 5. Someone who buys and sells financial instruments such as
S stocks and shares.
Why is Financial Literacy
Important?
Major Reasons Why Filipinos Fail to Manage Their Finances
• Many Filipinos do not allocate their money based on
priority.
• Many Filipinos have access to easy ways of borrowing
cash which results to bad debt.
• Many Filipinos do not take advantage of using good
debt to prosper in life.
• Many Filipinos have the “Come What May” mentality.
• Many Filipinos spend right after payday which leads to
Petsa de Peligro.
• Many Filipinos are victims of lifestyle inflation.
Source: Kristel Silang, Money Max
Ways to Achieve Financial Stability
Create a Budget Plan (Expenses)
What do you want vs. what do you really need? Start with your mandatory expenses
on a monthly basis. Add them up.

My Monthly expenses are/will be:

1. Rent PHP 3,500
2. Utilities PHP 2,000
3. Food PHP 5,000
4. Transportation PHP 4,000
(include: bus pass, fuel, insurance, payment)
5. Other Bills PHP 2,500
(include: credit cards, loans, cell phone, internet, etc…)
6. Other expenses PHP 4,000
(include: eating out, clothes, movie tickets, etc…)
TOTAL EXPENSES: PHP 21,000
Create a Budget Plan (Income)
Determine your sources of income
My Monthly Income will be:
1. Wages/Salary PHP 12,000
2. Business Income PHP 10,000
3. Part-time Job PHP 7,000
4. Scholarships PHP 0
5. Government Assistance PHP 1,000
6. Others PHP 0

TOTAL MONTHLY INCOME: PHP 30,000

Create a Budget Plan:
Assess, Adjust and Make a Plan
Subtract your total monthly expenses from your total income.

Example:
Total Monthly Income PHP 30,000
Total Monthly Expenses PHP 21,000
TOTAL SAVINGS PHP 9,000

Take note:
If your expenses exceeds your income, prioritize your expenses
and look for ways to cut back on spending.

Formula: Savings = Income - Expenses

Create a Budget Plan: 50/30/20 Rule of Budgeting
Step 1: Calculate Your Income
Let say: PHP 30,000

Step 2: Limit Your “Needs” to 50% of your Income

50% of Income: PHP 15,000

Step 3: Limit Your “Wants” to 30%

30% of Income PHP 9,000

Step 4: Spend 20% on Savings

20% of Income PHP 6,000

Note: Use the Envelop System.

Formula: Expenses = Income - Savings

Budgeting:

Savings = Income – Expenses

VS
Expenses = Income – Savings
Investment for Young People
 What is Investment?
Investment is a purchased item or asset that buyer
can identify as something that would appreciate its
value in the future and can be sold at a higher price.

Source: GRIT PH
 How to Start Investing with Little Money?

1. Determine how much you can afford to

Invest.
2. Save up for your emergency fund.
3. Put your money in low initial
investment vehicles
4. Make some research.
Types of Investments
1. Bank Products
2. Bonds
3. Stocks
4. Investment Bonds
5. Business Capital
6. Retirement Fund
7. Insurance
8. Real Estate
9. Securities Futures
 Investment Minimum Capital Average Returns Risk Level

Insurance (VUL) PHP 2,000/month 7.8 - 16.6% per year Medium

P2P Lending PHP 1,000 10-15% High

Stocks PHP 5,000 10.8% per year High

Mutual Funds & UITF PHP 1,000 2-5% per year Medium

Small Business PHP 5,000 High High

New Skills Time & Effort High Low

Source: GRIT PH
How to Choose the Best Investments?

The best investment yields high returns

with minimal risk.
 How to Invest Your Money Wisely?

1. Diversify, diversify, diversify

2. Always ask google and professionals
3. No day, but today