Financial

Literacy
 What is Financial Literacy?

Is the education and understanding of

various financial areas including topics
related to managing personal finance,
money and investing
This topic focuses on the ability to manage
personal finance matters in an efficient manner
and it includes the knowledge of making
appropriate decisions about personal finance
such as investing, insurance, real state, paying for
college, budgeting, retirement and tax planning.
BRIEF
HISTORY
OF
MONEY
 9000 BC
Humans started
bartering livestock,
grain and goods they
had in surplus against
ones they lacked.
1100 BC
Bronze replicas
(pieces) were
used in China as
coins
600 BC
First official
currency minted
by King Alyattes of
Lydia (Turkey)
coastal towns in
Indian Ocean use
cowrie shells for
trading
1250 AD
Florin, a coin
minted at
Florence was
established as
the standard in
Europe
1661 AD
Paper money
was finally
accepted and
the first Bank
notes were
printed in
Swede
1816 AD
Britain
pegged its
currency to
Gold to help
govern
inflation
1860 AD
Western
Union starts
funds transfer
via telegram
1946 AD
Brooklyn
banker John
Biggins invents
the Credit
Card (he
called it
Charg-It card)
1999 AD
Banks in
Europe
began to
authorise
mobile
banking
 2007 AD
Satoshi
Nakamoto starts
working on a
cryptocurrency
called Bitcoin
2008 AD
Contactless
payment
systems are
implemented
in the UK
HISTORY OF
MONEY
IN THE
PHILIPPINES
Teston
Barter Rings
Cobs
Dos Mundos
Barilla
Piloncitos
Sulu Coin
Portrait series
Counter stamped
Isabelinas
Alfonsinos
Alfonsos
US-Phil Coinage
Culion Leper Colony
Commonwealth Coins
 Budgeting
Most fundamental and basic form of financial
literacy. It s essential and basic tool that you
cannot spend more than you have.
There are multiple responsible ways to break
down a budget, the 50-30-20 rule.
Set aside 50% of your income toward
your essential needs or the things you
can’t live without
• Rent
• Utilities
• Food
• Transportation
30% of your income should be used for
flexible spending on things you desire
• Dining
• Entertainment
• Travel
  20% of your income should go toward financial
goals
• Savings
• Investments
• Credit cards payments

Categorizing your budget between obligations,

goals and leisure is a simple way to be conscious of
where you are spending your money.
 Savings
One very essential component of proper
budgeting. Creating saving account and a
brokerage account is the quickest way to
becoming financially independent.
Saving money and accumulating
wealth at an early age will give
you the freedom to live your life
on your terms.

Your savings is the portion of your

earnings not spent on your
expenditures.
 Equities
Equity is synonymous with stock market, it is
essential to understand what a stock truly is.
 Example buying a cell phone (Apple)

Purchasing equities/stocks means that you take on

risk. To take money, you have to risk money.
Owning one stock means that you are exposed to
overarching “market risk”
 Credit
Credit cards give you the ability to
develop your credit score(if you qualify,
how much interest they will charge you)

Credit is the money that bank will allow

you to use and then pay back in the
future.
 Annuities
An annuity is a long-term investment(issued
by an insurance company) specially
designed to be used for retirement.
Annuities are created and sold by a number
of financial institutions. They are designed to
protect your money and provide you with a
secure stream of your future income.
 Bonds
Bonds are tool that companies use to fundraise money for
their business. Bonds are form of corporate debt and are
treated essentially like IOU’ (LincoInInvest).
Companies rather than getting loan from a bank, will issue
bonds to get funds from the public.
Bonds are known as “Fixed-income” securities, which means
that when you purchase a bond, you will know the schedule
and the amounts of the interest payments you will receive.
 Mutual Funds
Mutual Funds and ETFs (Exchange Traded
Funds) are the best way to diversify your
portfolio when you do not have a lot of
money.
ETFs and Mutual funds are portfolios
managed by professional investors that you
can invest in at much lower price (Investor)