Financial

Literacy

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
Understanding
Concepts on
Savings

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
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 “Dili
importante pila
ang imong kita,
kundili pila
ang imong
tinigum.”
FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy
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 Concepts on Savings
“Save”– to preserve for future use;
– to treat or use carefully in order to preserve;
– to keep

Savings is not the opposite of

spending. It is simply means
keeping your money to spend it in
the future.

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

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 Invest – to put (money) into business,
real estate, stocks, bonds, etc.
for the purpose of earning
an income or profit.

Savings is not enough; you have to make

your money grow by investing it properly.
There are too many cases of people who
are good at saving but who still lose all
their savings because of bad investments.

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
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 Insure – to contract to be paid money
in case of accidents, loss of
life or property, etc.

Even if you don’t have the savings, your insurance

will give your loved ones the money they need

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

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Therefore,
Saving is not the end itself.

One must learn to SAVE and

INVEST and INSURE oneself

However, you must first learn to

save before you can invest or pay
for insurance
FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy
TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
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Nobody Some just
plans to fail to
fail plan

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
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What are the things people
need to plan for?
Children’s Education

House and Lot

Capital for Business
Sickness, Accident
and Disability
Unemployment

Retirement / Old Age

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy
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Important Concepts
in Successful Saving
 Save before you spend.

 Recognize your needs versus

your wants.

 Write your budget and life

goals and stick to your
financial plan.

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
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 Where does
your salary go?

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
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The “Money Trees”
Life
ASSETS
Health Education

Insurance Housing

SSS/Pag-ibig Retirement
Investment

Save Cash (20%)

Income Spend Clothing EXPENSES
Food Shelter
Transportation Leisure
FINANCIAL LITERACY AND ADDRESSING BARRIERS
TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy
TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
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 BUDGET
SALARY SALARY
Food SAVINGS
Housing Food
Transportation Housing
Clothing Transportation
Education Clothing
Health Education
Leisure Health
EXPENSES Leisure
= SAVINGS = EXPENSES

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
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 ACTIVITY 1:

Workshop on Budgeting
FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy
TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
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Steps to a Successful Budget

1. Assess where you are now financially

2. Determine where you want to be
financially.

3. Design a plan to reach your goal.

4. Implement the Plan
5. Monitor the Plan
FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy
TO REINTEGRATION FOR OFW’S AND THEIR FAMILIES
 More Tips from money.cnn.com
 If you’re not saving 10% of your salary, you’re
not saving enough!
 The fastest way to this minimum target is to put
your 13th month pay in a mutual fund/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 for their
family goals and insurance

FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy

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 Goals of Budget
B • Boundaries
U • Unwanted Stress and Pressures
D • Debt Free
G • Generate More and Give
E • Eradicate Impulsive Buying
T • Trust
FINANCIAL LITERACY AND ADDRESSING BARRIERS Financial Literacy
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