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Financial
Literacy
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Objectives:
Identify the current financial situation and thereasons why they are at the current state;
Make family budget, set goals and financial plan
to enable them achieve their goals for migration; Understand the various savings and investment
instruments that they can avail of;
Translate their financial and family goals into
concrete savings and investment program; and Understand when to borrow and the borrowing
cost.
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Understanding Concepts on
Savings
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It is not the money
you make but it ishow much
money you save
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Concepts on Savings
Save to preserve for futureuse;
-- to treat or use carefullyin order to preserve;
-- to keep
Saving is not the opposite of
spending. It simply means keepingyour money to spend it in the
future.
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Invest to put (money) into business,real estate, stocks, bonds, etc.for the purpose of earning an
income or profit
Saving is not enough; you have to makeyour money grow by investing it
properly. There are too many cases ofpeople who are good at saving but who
still lose alltheir savings because ofbad
investments.
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Insure to contract to bepaid money in case ofaccidents, loss of life,
property, etc.
Even if you dont have the
savings, your insurance will give
your loved ones the money they
need.
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Therefore,
Saving is not an end in itself.
One must learn to Save ANDInvest AND Insure oneself.
However, you must first learn
to savebefore you can investor pay for insurance.
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Nobody
plans to
fail
Some Just
Fail to Plan
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What are the things that
people need to plan for?
House and Lot
Childrens Education
Capital for Business
Sickness, Accidentand Disability
Unemployment
Retirement / Old Age
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Important Concepts in
Successful Saving
Save Before You Spend.
Recognize your needsversus your wants.
Write your budget and
life goals and stick to your
financial plan.
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Where Does
Your Salary Go?
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The Money
Trees
INCOME
Save
SSS/Pag-ibig
Investment
HousingInsurance
Life
Spend
Food
Transportation
Clothing
Leisure
Shelter
EXPENSES
Education
Retirement
Cash (10%)
ASSETS
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BUDGE
TING
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BUDGE
TSalary
Food
Housing
Transportation
Clothing
Education
HealthLeisure
EXPENSES
SAVINGS
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More Tips- from money.cnn.com
If youre not saving 10% of your salary,youre not saving enough!
The fastest way to the minimum target is toput your 13th month pay in a mutualfund/UITF IMMEDIATELY!
Save the amount using various instruments
before spending money. It is important for members of the family in
the Philippines to contribute and save fortheir family goals and insurance
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MORE TIPS ON
BUDGETING
Tracking of expense is important that you always haveto carry a pen and paper to write all the things to buy andmark each everytime you buy it.
Comparing yourIncome
as against your
Expensewould help you identify if you haveenough money for spending.
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GOALS OFBUDGET
B- Boundaries
U- Unwanted Stress and Pressures
D- Debt Free
G- Generate More and Give
E- Eradicate Impulsive Buying
T- Trust God