HERCOR COLLEGE

Km. 1 Lawaan, Roxas City, Capiz

5800

Department: College of Education Course Code: EDUC202

Name of Instructor: Richele B. Dorado Schedule: __________
Course Descriptive Title: Building and Enhancing New Literacies Across the Curriculum Learning Module
Semester: 2nd Sem

Name of Student: ________________________________ ________ Course Code:_____________________

Name of Instructor:_______________________________________ Schedule:________________________
Course Descriptive Title: ___________________________________ Contact no.:________________________

Building and Enhancing New Literacies Across the Curriculum Learning Module

Course Description:
By the design of the course, we already imply strong connections of media to society, specifically to its power
structures – from media institutions, to big businesses, and even political blocks.

 Module Release:
 Submission of Evaluation Task: WEEK 7-8

INTRODUCTION

This week, you will study and explore financial

literacy as the ability to understand and effectively
use various financial skills, including personal
financial management, budgeting, and investing.
Developing financial literacy to improve your
personal finances involves learning and practicing a
variety of skills related to budgeting, managing and
paying off debts, and understanding credit and
investment products.

Along with these concepts, you will encounter

activities that will gauge and evaluate your learning and comprehension regarding the subject matter. Materials for your
references are also available and attached in this module. For this week, you are expected to gear yourself with the basic
understanding of the course in preparation for a larger scope of commitment to learn Building and Enhancing New
Literacies Across the Curriculum course.

OBJECTIVES

At the end of this chapter, you should be able to:

1
 1. Assess level of personal financial literacy using set of standards and questions.
2. Characterize financial literacy in the Philippines.
3. Start practical steps to develop personal financial literacy.

DISCUSSION (Chapter 4: Financial Literacy

The National Endowment for Financial Education defines financial literacy as "the ability to read, analyze, manage,
and communicate about the personal financial conditions that affect material well-being. It includes the ability to discem
financial choices, discuss money and financial issues without (or despite) discomfort, plan for the future, and respond
competently to life events that affect every day financial decisions, including events in the general economy" (Incharge
Education Foundation, 2017). To put it simply, it is the ability to use knowledge and skills to manage one's financial
resources effectively for lifetime financial security" (Mandell, 2009). Meanwhile, Hastings, et al. (2013) refers to financial
literacy as:

1. knowledge of financial products (e.g., a stock Vs. a bond, fixed vs. adjustable rate mortgage):
2. knowledge of financial concepts (e.g. inflation, compounding, diversification, credit scores);
3. having the mathematical skills or numeracy necessary for effective financial decision making; and
4. being engaged in certain activities such as financial planning.

Public and private institutions alike have recognized the need for financial literacy to be incorporated in the school
curriculum. Financial education and advocacy programs of the public and private sectors have been identified as key
areas in building an improved financial system in the Philippines (Go, 2017). Republic Act 10922. otherwise known as the
"Economic and Financial Literacy Act." mandates Deped to "ensure that economic and financial education becomes an
integral part of formal learning."

The Council for Economic Education, the leading organization in the United States that focuses on the economic and
financial education of students from Kindergarten through high school developed six standards gearing toward
deepening students' understanding of personal finance through an economic perspective. The standards and key
concepts are summarized in the table below.

Standards Key Concepts

 income earned or received by people

 different types of jobs as well as different forms of income earned or received
 benefits and costs of increasing income through the acquisition of education and
Earning income skills
 government programs that affect income
 types of income and taxes
 labor market

 scarcity, choice, and opportunity cost

 factors that influence spending choices, such as advertising, peer pressure, and
spending choices of others
 comparing the costs and benefits of spending decisions
 basics of budgeting and planning
Buying goods and  making a spending decision
services  payment methods, costs, and benefits of each
 budgeting and classification of expenses
 satisfaction, determinants of demand, costs of information search, choice of

2
 product durability
 the role of government and other institutions in providing information for
consumers

 concept of saving and interest

 how people save money, where people can save money, and why people save
money
 the role that financial institutions play as intermediaries between savers and
borrowers
 the role govemment agencies such as the Federal Deposit Insurance Corporation
(FDIC) play in protecting savings deposits
 role of markets in determining interest rates
Saving  the mathematics of saving
 the power of compound interest
 real versus nominal interest rates IC
 present versus future value
 financial regulators
 the factors determining the value of a person's savings over time
 automatic savings plans, "rainy-day" funds
 saving for retirement

 concept of credit and the cost of using credit

 why people use credit and the sources of credit
 why interest rates vary across borrowers basic calculations related to borrowing
Using Credit (principal, interest, compound interest)
 credit reports and credit scores
 behaviors that contribute to strong credit reports and scores
 impact of credit reports and scores on consumers
 consumer protection laws

 concept of financial investment

 variety of possible financial investments
 calculate rates of return
 relevance and calculation of real and after-tax rates of return
Financial Investing  how markets cause rates of return to change in response to variation in risk and
maturity
 how diversification can reduce risk
 how financial markets react to changes in market conditions and information

 concepts of financial risk and loss

 insurance (transfer of risk through risk pooling
 managing risk
Protecting and Insuring  identity theft
 life insurance products
 how to protect oneself against identity theft

3
The Benefits of Finacial Literacy

One's level of financial literacy affects one's quality of life significantly. It determines one's ability to provide
basic needs, attitude toward money and investment, as well as one's contribution to the community. Financial literacy
enables people to understand and apply knowledge and skills to achieve a lifestyle that is financially balanced,
sustainable, ethical, and responsible.

Increased personal financial literacy affects one's financial behavior. These changes in behavior pay dividends to
society as well. People who work, spend, save, borrow, invest, and manage risk wisely are less likely to require a
government rescue. Financial literacy does not totally eliminate the need for a social safety net because even the most
prudent individual can encounter financial difficulties. But taking responsibility for one's financial life cultivates proper
decision-making skills and discipline. Most of the responsibility for managing financial matters rests with the individual.
That responsibility is easier for adults to bear when they have learned the basics of personal finance in their youth.

Finacial Literacy in the Philippines

In his article "State of Financial Education in the Philippines," Go (2017) indicated several findings of researches
with regards to the state of financial literacy in the country including the following:

 World Bank study in 2014 estimated 20 million Filipinos saved money but only half had bank accounts.
 Asian Development Bank (ADB) study in 2015 revealed that PH does not have a national strategy for financial
education and literacy.
 In 2016, Bangko Sentral ng Pilipinas (BSP) released the national strategy for financial inclusion, stating that while
institutions strive to broaden financial services, financial literacy should also complement such initiatives.
 As per Standard & Poor's (S&P) Ratings services survey last year, only 25% of Filipinos are financially literate. This
means that about 75 million Filipinos have no idea about inflation, risk diversification, insurance, compound
interest, and bank savings.
 Ten years after discovery of the stock market still less than one percent of PH population is invested in it.
 More than 80 percent of the working middle class have no formal financial plan.

Because of these findings, public and private sectors alike have recognized the need to strengthen financial
education in the country. Last November 27-28, 2018, more than 1,000 leaders, decision-makers, influencers, and
representatives from public and private institutions, civic society, and the academe gathered for the first ever Financial
Education Stakeholders Expo organized by BSP. The Expo is designed to build an organized network of players that share
the vision of a financially literate citizenry and cohesively implement a variety of initiatives to achieve this vision. This is
in line with the BSP advocacy for financial education and supports the BSP mandates of maintaining price stability,
financial stability, and efficient payments system. It is the BSP's conviction that a financially educated Filipino is an
empowered Filipino who is able to make wise financial decisions that positively impact personal financial circumstances,
and, consequently, contribute to inclusive and sustained economic development.

The Expo supports Republic Act No. 10922 which designates second week of November as Economic and Financial
Literacy Week. It is also aligned with the objectives of the Philippine National Strategy for Financial Inclusion, particularly
the pillar on Financial Education and Consumer Protection.

4
Developing Personal Financial Literacy

One’s attitude about money is heavily influenced by the parents’ attitude and behaviour about money. The
attitudes you formed early in life probably affect how you save spend, ond invest today Do you behave differently from
your parents about handling money?
There are six major characteristic types in how people view money (In Charge, 2017).

Frugal: Frugal people seek financial security by living below their means and saving money. They rarely buy luxurious
items: they save money instead. They save money because they believe that money will offer protection from
unprecedented events and expenses.

Pleasure: Pleasure seekers use money to bring pleasure to themselves and to others. They are more likely to spend than
to save. They often live beyond their means and spend more than they earn. If they are not careful and do not change,
they may fall into deep debt.

Status: Some people use money to express their social status. They like to purchase and show off their branded items.

Indifference: Some people place very little importance on having money and would rather grow their own food and
craft their own clothes. It is as if having too much money makes them nervous and uncomfortable.

Powerful: Powerful people use money to express power or control over others.

Self-worth: People who spend money for self-worth value how much they accumulate and tend to judge others based
on the amount of money they have. Which characteristic closely resembles your attitude about money?

Which characteristic closely resembles your attitude about money?

Spending Patterns

Are you prudent or have you been accused of spending money lavishly? Or are you somewhere in between?
Individuals have different spending patterns. Before one can come up with a financial improvement plan, one needs to
analyze his/her spending habits. There are two common spending patterns: habitual spending and impulsive spending.
Habitual spending occurs when one spends out of a habit, when one buys the same item daily, weekly, or monthly. Daily
items may include water, rice, and cup of coffee. Week items may be grocery items. Monthly items are the electricity
and Internet bills. Impulsive spending occurs when one mindlessly purchases items that he or she does not need. Many
people are often enticed by monthly sales at the malls with the attitude that they may lose the items the following day.

Fixed vs. Variable Expenses

Fixed expenses remain the same year-round. Car payment is an example. Variable expenses occur regularly but
the amount you pay varies. Electric and gas bills are examples of these.

Needs vs. Wants

Financial discipline starts with an ability to recognize whether expenses are needs or wants, and followed by
ability to prioritize needs over wants. Needs are essential to our survival. Wants are things that you would like to have
but you can live without, such as new clothes or a new cell phone model. You want them but do not necessarily need
them. Too many wants can ruin a budget.

5
Here are practical steps you can undertake to enhance your financial literacy.

 Setting Financial Goals

Setting financial goals is the first step to managing one's financial life. Goals may be short, medium, and long-term.
Short-term goals can be measured in weeks and can provide instant gratification and feedback. "I will ride on the LRT
instead of taxi" and "I will bring lunch every day" are examples of short-term goals. Medium-term goals should be
accomplished within one to six months. These goals provide opportunity for reflection and feedback and require
discipline and consistency. Long-term financial goals can take years to achieve. These include saving money for a down
payment on a home, a child's college education and retirement, They may also include paying off a car, student loans, or
credit card debt.

 Developing a Spending Plan

Time and effort are necessary to build a sustainable spending plan. Three easy steps are proposed below when
developing your personal spending plan

1. Record - Keep a record of what you spend.

2. Review - Analyze the information and decide what you do.

3. Take action - Do something about what you have written down.

 Importance of Saving

Because no one can predict the future with certainty, we need to save money for anything that might happen. Here
are some reasons why saving is important:

1. Emergency Bolster - You should save money to avoid going to debt just to pay emergency situations, like
unexpected medical expenses and damages caused by calamities or accidents.

2. Retirement - You will need savings/investments to take the place of income you will no longer receive when you
retire.

3. Future Events - You need to save for future events like weddings, birthdays, anniversaries, and travels so as not
to sacrifice your fixed expenses.

4. Instability of Social Security - Pensions from social security should only serve as supplementary and not the
primary source of income after retirement.

5. A Little Goes a Long Way - Small consistent savings go a long way.

There are two ways to save:

a. save before you spend: and

b. save after you spend wisely.

In order to stick to the savings habit, you should

1. commit to a month:
2. find an accountability partner:
3. find a savings role model who is successful with his/her money, through tried and true savings:

6
 4. write your goal down and track it, and
5. avoid tempting situations (don't go to the mall to "hang out").

Wrap Up

 Financial literacy is the ability to use knowledge and skills to manage one's financial resources effectively for
lifetime financial security.

 Financial literacy enables people to understand and apply knowledge and skills to achieve a lifestyle that is
financially balanced, sustainable, ethical, and responsible.

 One's attitude about money is heavily influenced by the parents' attitude and behavior about money.

 Standards for developing understanding of financial literacy include earning income, buying goods and
services, saving, using credit, financial investing, protecting, and insuring.

EVALUATION

Use the table below to list down your expenses that belong to the needs and those that belong to the wants.

Needs Wants

How does your current budget pie chart look like? Using the
following categories, map your ideal budget plan using a pie
chart. You may use more categories as needed.

a. Housing
b. Electric bills
c. Internet

7
 d. Food
e. Debt
f. Education
g. Tranportation
h. Shopping
i. Travels

Create a personal “meme” about your financial behaviour or spending and saving behaviour.

RUBRICS/PERFORMANCE INDICATORS
CRITERIA EXEMPLARY ACCEPTABLE DEVELOPING BEGINNING
10 8 6 4

Focus and Details There is one clear, There is one clear, There is one topic. The topic and main
well-focused topic. well-focused topic. Main ideas are ideas are not clear.
Main ideas are clear Main ideas are clear somewhat clear.
and are well but are not well
supported by detailed supported by detailed
and accurate information.
information.

Organization The introduction is The introduction The introduction There is no clear

inviting, states the states the main topic states the main topic. introduction,
main topic, and and provides an A conclusion is structure, or
provides an overview overview of the included. conclusion.
of the paper. paper. A conclusion is
Information is included.
relevant and
presented in a logical
order. The conclusion
is strong.

Sentence Stucture, All sentences are well Most sentences are Most sentences are Sentences sound
Grammar, constructed and have well-constructed and well constructed, but awkward, are
varied structure and have varied structure they have a similar distractingly

8
Mechanics, & length. The author and length. The structure and/or repetitive, or are
Spelling makes no errors in author makes a few length. The author difficult to
grammar, mechanics, errors in grammar, makes several errors understand. The
and/or spelling. mechanics, and/or in grammar, author makes
spelling, but they do mechanics, and/or numerous errors in
not interfere with spelling that interfere grammar, mechanics,
understanding. with understanding. and/or spelling that
interfered with
understanding.

DIRECTIONS TO SUBMIT (IF SUBMISSION IS THROUGH ONLINE )

Submit your work either Online thru this email/Google Class or personally at the scheduled date below in Microsoft Word 97-
2003, .docx or other word processing file. (Google Docs, Open Office are also acceptable.

Google Account: [email protected]

Google Classroom: Educ 202 – Bulding and Enhancing New Literacies Across the Curriculum (class code: 6p4vklj)

DIRECTIONS TO SUBMIT (IF SUBMISSION IS THROUGH FACE -TO-FACE )

1. Bring your completed assignment in school (Riverside Campus).
2. Drop your completed assignment at the box (Educ 202 – Bulding and Enhancing New Literacies Across the Curriculum)
placed in front of COE Faculty Room.
3. Make sure to label your completed assignment with your name, course, year and section.

REFERENCES
Building and Enhancing New Literacies Across the Curriculum, First Edition 2019 | Alata, Elen Joy P. et al.