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Module 1 Financial Planning

Financial planning involves evaluating an individual's current and future financial situation to manage cash flows, expenses, and asset values over time. It allows people to gain control over spending, feel secure by reducing risk, feel free from debt and worry, and realize their goals. The financial planning cycle involves assessing one's current financial state, determining any needed changes, setting goals and visions for the future, and taking action to achieve those goals. An example exercise encourages envisioning dreams for the next 10 years and estimating costs to motivate financial planning.

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Juan Frivaldo
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202 views12 pages

Module 1 Financial Planning

Financial planning involves evaluating an individual's current and future financial situation to manage cash flows, expenses, and asset values over time. It allows people to gain control over spending, feel secure by reducing risk, feel free from debt and worry, and realize their goals. The financial planning cycle involves assessing one's current financial state, determining any needed changes, setting goals and visions for the future, and taking action to achieve those goals. An example exercise encourages envisioning dreams for the next 10 years and estimating costs to motivate financial planning.

Uploaded by

Juan Frivaldo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FINANCIAL

PLANNING
What is financial planning?

A comprehensive evaluation of an individual’s


(or household’s) current and future financial
state to predict and manage future cash
flows, expenditures, and asset values.

DEPARTMENT OF EDUCATION
Why make a financial plan?
Control Sustainable
over spending lifestyle

Security Freedom
from risk from debt

Freedom Realizing
from worry goals

DEPARTMENT OF EDUCATION
The Financial Planning Cycle
What is my
Financial
State?

What
What do I
changes do I
want to
need to
achieve?
make?

What must I
Am I doing it? do to achieve
it?
DEPARTMENT OF EDUCATION
What do I want to
achieve?

DEPARTMENT OF EDUCATION
Visioning Exercise
Step 1
Visualize what you
want to achieve after
ten years.

Step 2
Estimate the amount
you would need to
make your dreams
come true.

Step 3
Set visual reminders
to motivate you.
DEPARTMENT OF EDUCATION
Chatbox Activity
What do you want to achieve within 10 years in your
financial life?
a. Build a nice house for me and my family
b. Buy nice cars for me and my family
c. Send all my children to good schools
d. Establish a good business or have extra sources of income
e. Travel for leisure around the country and the world
f. Others. Please specify.

DEPARTMENT OF EDUCATION
Chatbox Activity

Estimate the cost of achieving all your goals. How


much will it be?
a. Zero to 10 million pesos
b. 11 to 20 million pesos
c. 21 to 30 million pesos
d. 31 to 40 million pesos
e. 41 million pesos and above

DEPARTMENT OF EDUCATION
Chatbox Activity

What must I do to
achieve my dreams?
Type your short answer in the Chatbox.

DEPARTMENT OF EDUCATION
Exercise a
FINANCIAL PLAN
today.

DEPARTMENT OF EDUCATION
Your current financial state is the
sum total of all your past
financial choices?

DEPARTMENT OF EDUCATION
Remember…
Parents, your children are not
your RETIREMENT PLAN.

Children, your parents are not


your EMERGENCY FUND.

Do financial planning today.

DEPARTMENT OF EDUCATION

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