Final Presentation

Financial
Literacy Training
Sergio B. Baquilod Jr.
Negosyo Center Business Counselor
Negosyo Center Maydolong
OBJECTIVES
Understand financial planning and management
Appreciate the use of budgeting in tracking expenses.
Realize how financial resources are being spent and create a
plan to fully utilize the their resources
Understand the value of savings
Learn how to stay out of financial trouble.
FINANCIAL
LITERACY
Financial Literacy
Quick Facts
• 25% of Filipino adults are financially literate

– Standard & Poor’s (S&P) Ratings Services
• 80% of working middle class Filipino see a bleak retirement and more
than half expect to be supported by their children in their old age.
• 84% of the working middle class Filipino have no formal financial plan
• 90% attempt to follow a budget, but only 33% stick to it.

Financial Literacy
 is the possession of the set of skills and knowledge that allows an

individual to make informed and effective decisions with all of their
financial resources – Wikipedia
 Having the ability to not let money – or the lack of it – get in the way
of your happiness as you work hard – Annuities.org
Financial Literacy
it is the ability to manage finance matters in an efficient manner, and

includes the knowledge of making appropriate decisions about personal
finances.
GROUP ACTIVITY
1. Per table, make a BUDGET plan of your household for the whole month.
2. Write down all the expenses and income for the whole month.
3. Assign one (1) member to present the output of the group.
10 minutes
What is Spending Plan?
 A tool used to record and track projected and actual income and
expenses over a period of time.
 Also called as budget.
Guidelines in Budgeting
Housing & Utilities
30%
Food & Household
20%
Clothing and Personal 10%
Transportation
10%
Savings & Investing
10%
Miscellaneous
Benefits of Spending Plan
A spending plan can help you:

 Put aside money for saving goals
 Prepare for regular expenses
 Prepare for unexpected expenses
 Control how you spend money
 Reduce stress and increase confidence
 Provide an excuse to calm excessive spending
Consequences of NOT using a
Spending Plan
 No idea where money has been spent
 Bad spending habits are unidentified
 Unprepared for emergencies
 Strained relationships
 Lack of savings plan
 Wasted money
 Stress
How to Make a Spending
Plan?
How to Make a Spending Plan?
1. Assess your personal financial situation (needs, values, life situation).

2. Set personal and financial goals

3. Create a budget for fixed and variable expenses based on projected

income
4. Monitor current spending patterns.

5. Compare your budget to what you actually spent.

6. Review financial progress and revise budget.

1. Assess your personal financial situation (needs, values, life
situation).
2. Set personal and financial goals.
3. Create a budget for fixed and variable expenses based on projected
income.
4. Monitor current spending (saving, investing) patterns.
5. Compare your budget to what you actually spent.
6. Review financial progress and revise budget amounts.
How to Reduce Negative Cash
Flow?
REDUCE SPENDING
INCREASE INCOME
Flow?
REDUCE SPENDING
Doing comparison shopping
Using coupons
Avoiding impulse purchases
Commute, walk or ride a bike
Eat at home
Shop at thrift stores
Use of frequent shoppers card or discount cards
Flow?
INCREASE INCOME
After school/ weekend jobs
Garage sale
Create homemade products
Provide a service
Yard work
Tools in Budgeting
Envelope System
Computer Programs
Paper Tracking
Tools in Budgeting
Envelope System
• Envelope is label for the category of spending
• A pre determined amount of money is placed in each envelope for each
category.
• Each time money is spent from an envelope, the transaction details is recorded
on the outside of the envelope.
Tools in Budgeting
Computer Program
Tools in Budgeting
Paper Tracking
• Always record transactions in a check
register or on the outside of the
envelope for each category
Three STEPS to achieving
FINANCIAL FREEDOM:
3
Invest
2
Save
1
Plan
The FIRST STEP to achieving
FINANCIAL FREEDOM:
PLAN
Steps in Financial Planning
a. Set family goals together;

b. Set a time frame for achieving family goals;
c. Discuss and determine how each member will contribute to achieving family goals;
d. Remind everyone of their commitment from time to time; and
e. Monitor whether the family is achieving its goal or not.
Setting a Time Frame for
Each Goal
Start by answering the following questions:
 Education - When will all the children/siblings finish high school or
college?
 Housing – When can you buy your own home or at least make the down
payment for a new home?
 Retirement – At what age do you plan to retire?
 Health and Protection – Do all the children have the required
vaccinations? Do all adults have family health plans?
 SAVINGS & INVESTMENT – How much & until when should you
save? Where and how much to invest?
Setting-up Family Goals
Family goals are usually centered on the

ff:
a. Education
b. Housing
c. Health
d. Retirement
e. Protection/preparedness
against unforeseen events
f. Savings & Investment
YOUR FINANCIAL PLAN
IMMEDIATELY 2 years 10 years 20 years
TIME LIN
Graduation Fund for Build Dream Retirement
Child 1 House E LIFE Fund
(P 50 K) (P 5 Mn.) (P 1 Mn.)
Fund G O ALS
s for
Busine
ss
Undert
aking
(
P
• Create a timeline on when you want it to happen
• Specify amount
1 needed
0
0
The SECOND STEP to achieving
FINANCIAL FREEDOM:
SAVE!!!
SAVINGS
Saving is a conscious and

deliberate way of setting aside
a portion of the personal
income.
OBSTACLES TO SAVINGS
Procrastination - delaying savings or

putting savings off for another time;
Poor Spending Habits – includes

spending on unnecessary items;
impulse buying; hedonistic
lifestyle
OBSTACLES TO SAVINGS
Culture of Dependency - Being overly

dependent on others
Lack of Financial Literacy –

Spending on liabilities or items that
decrease in value over time; not
knowing how your money will
grow or work for you
Savings Formula
Salary – Expense = Zero

(Poverty Formula) Wants:
Dress & shoes
Salon
Restaurant
P50K – P50K = 0 Travel
savings Entertainment
Savings Formula
Income – Save &/ Invest = Expense

(Prosperity Formula)
Needs:
Send money at
home
P5K – P3K = P2K
TIPID TIPS
10. Mag enjoy ng libre
9. Magba-on
8. Umiwas sa Mall (Separate your shopping day &
buying day
7. Huwag gumastos
6. Mag-invest
TIPID TIPS
5. Maging simple (minimize wants) ano yong katangap
tangap mo (back to basic) Simple life less stress
4. Magbayad sa tamang oras
3. Magtimpi /control
(travel promo, sale promo, on-line shopping)
2. Mag impok (Force Savings)
1. ?
TIPID TIPS
1. Maglista
(sa paggrocery, gastusin sa bahay, )
pangangailangan at kagustuhan (needs & wants)
The THIRD STEP to achieving
FINANCIAL FREEDOM:
INVEST
MAKE YOUR
MONEY GROW
Invest your savings in money-
making assets. MAKE YOUR MONEY
WORK FOR YOU.
SAVE TO INVEST
 KEEPING MORE
of the money you
earn
 MAKING MORE
with the money you
keep
$ M A R T M ON E Y M E CH A N I
WISE INVESTMENT
Think of an affordable project:

 Start small but think big
 Person to handle (Meron / kaya ba?)
 Viability
Eventual Reintegration:
 Preparation – Acquisition /
Enhancement of skills
 Encourage Family Members in the Philippines

to learn the same skills
Review
Financial independence – is achieved by reducing
spending, earning more, saving more, and avoiding negative
cash flow.
A spending plan is a tool to assist one in tracking and

monitoring income and expenses and avoiding negative cash
flow
THANK YOU!!!

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Financial

• 25% of Filipino adults are financially literate

• 90% attempt to follow a budget, but only 33% stick to it.

 is the possession of the set of skills and knowledge that allows an

it is the ability to manage finance matters in an efficient manner, and

A spending plan can help you:

1. Assess your personal financial situation (needs, values, life situation).

2. Set personal and financial goals

3. Create a budget for fixed and variable expenses based on projected

4. Monitor current spending patterns.

5. Compare your budget to what you actually spent.

6. Review financial progress and revise budget.

a. Set family goals together;

Family goals are usually centered on the

IMMEDIATELY 2 years 10 years 20 years

Saving is a conscious and

Procrastination - delaying savings or

Poor Spending Habits – includes

Culture of Dependency - Being overly

Lack of Financial Literacy –

Salary – Expense = Zero

Income – Save &/ Invest = Expense

Think of an affordable project:

 Person to handle (Meron / kaya ba?)

 Encourage Family Members in the Philippines

A spending plan is a tool to assist one in tracking and

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