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SAVING AND
BUDGETING
SAVING
DEPARTMENT OF EDUCATION
Chatbox Activity
What percentage of the Filipino adult population save?
a. 33%b. 43%c. 53%d. None of the above
DEPARTMENT OF EDUCATION
Chatbox Activity
What is the main reason why you can’t save?
a. I earn just enough, and have no extra money
b. I use my money for other activitiesc. I do not have workd. None of the above
What can enable you to save?
a. Having higher pay or better job
b. Being able to cut down on expenses
c. Spending on better or cheaper deals
d. Have financial assistance from government
e. Being financially educated
Chatbox Activity
DEPARTMENT OF EDUCATION
Why do we need to save?
DEPARTMENT OF EDUCATION
Life Cycle Events
Education
Properties acquisition
Marriage
EmploymentEntrepreneurship
Growing FamilyRetirement Planning
DEPARTMENT OF EDUCATION 8
Life Cycle Events
Sickness
Accident
Death
Calamities
Epidemic
DEPARTMENT OF EDUCATION
Medical Unemployment Acts of Nature
Wellness Maintenance
Emergency Fund
DEPARTMENT OF EDUCATION
Saving Tips
Saving is life
Saving is life
Saving is life
√
DEPARTMENT OF EDUCATION
Everyone participates
I will show a picture on screen
Type on the Chatbox if it is a NEED or a WANT
Chatbox Activity
DEPARTMENT OF EDUCATION
Need or Want?
DEPARTMENT OF EDUCATION
Need or Want?
DEPARTMENT OF EDUCATION
Need or Want?
Where to save?
DEPARTMENT OF EDUCATION
Why save in banks?
Liquidity
Safety
Security
Interest
DEPARTMENT OF EDUCATION
Bank Savings Products
Basic Deposit Account
Regular Savings Account
Time Deposit Check Deposit
DEPARTMENT OF EDUCATION
Time Value of Money
Today After 1 Year
DEPARTMENT OF EDUCATION
Time Value of Money
Today After 1 Year
DEPARTMENT OF EDUCATION
Year Principal Yearly Interest* Year-end Balance
1 5,000.00 100.00 5,100.00 2 5,100.00 102.00 5,202.00 3 5,202.00 104.04 5,306.04 4 5,306.04 106.12 5,412.16 5 5,412.16 108.24 5,520.40
10 5,975.46 119.51 6,094.97
15 6,597.39 131.95 6,729.34
20 7,284.06 145.68 7,429.74
Compounding Interest
DEPARTMENT OF EDUCATION
Other saving options
Savings & Credit Cooperatives
Savings & Loans Associations
Self-Help Groups
Non-Financial Assets
DEPARTMENT OF EDUCATION
When to save?
N WStart. Motivate. Persevere.
BUDGETING
DEPARTMENT OF EDUCATION
What is a budget?
Budgeting is telling your money where to go instead of wondering where it went.Dave Ramsey
Budgeting is a process of an estimation of revenue and expenses over a specified future period of time.Investopedia
DEPARTMENT OF EDUCATION
How to budget?
DEPARTMENT OF EDUCATION
Why is there need to budget?Budgeting allows you to:
Focus on important financial goals
See “warning signs” of potential financial troubles
Prepare and mitigate them in advance.
Some Budgeting Techniques
28Budgeting challenges
Too much effort required
Lack of family support
Lack of motivation
Temptations, FOMO, YOLO
29Possible solutions to challenges
Use budgeting tools
Share your plans with family
Keep your eye on the prize
Practice discipline
DEPARTMENT OF EDUCATION
Some digital solutions
Auto Debit Arrangement
Electronic Bills Payment
Electronic Fund Transfer
DEPARTMENT OF EDUCATION
E-Payment Services
Available in participating bank and non-bank financial institutions
