PUBLIC

Financial
Wellness

Presented by:
Employee Banking

11/04/2024
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Target Audience – is this for me?

• Anyone who doesn’t feel like their personal finances are in

a rock-solid position

• Anyone who doesn’t feel like they are in control of their

future financial status

• Anyone who wants to be in charge of

their financial destiny…

…in other words…

YOU!

“The team responsible for the content of these presentations confirm that the views expressed reflect their personal opinion(s) about the
subject matter as appropriate.
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Me & My Money
1. What kind of a relationship do you have with
money?
a) Happy and Healthy
b) Complicated
c) Bad

2. If money was an actual person living in your

home, how would money describe you?

3. Myths about money?

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subject matter as appropriate.
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Do you know
how much you
are worth?

4 “The team responsible for the content of these presentations confirm that the views expressed reflect their personal opinion(s) about the
subject matter as appropriate.
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Personal Finance
The process of planning Income generation
and managing personal
financial activities by Spending
gaining an understanding of
your financial situation in Saving
order to make the most of
your assets in day-to-day life
and in planning for your Investing
future.
Also Includes Tax Planning and
Preparing for Retirement
Protection
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subject matter as appropriate.
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Potential Pitfalls in Personal Finance

Spending more than you earn

Living beyond your means

Solution:

1 •
•
Budgeting and allocation
Avoiding peer pressure

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subject matter as appropriate.
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Lack of
financial planning and knowledge

Solution:

2 •
•
•
Set Financial & Life Goals
Seek Financial knowledge
Online and Offline
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subject matter as appropriate.
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Uncontrolled debt
Inappropriate debt

Solution:

3 •
•
Borrow to Invest, not to Consume
Pay off debt sooner

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subject matter as appropriate.
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Lack of
an investment strategy

Solution:

4 •
•
•
Set your Financial Goals
Assess your Risk Appetite
Invest with clear objectives
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subject matter as appropriate.
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Depending
on single income

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Solution:
• Have multiple streams of Income
• Upskill yourself – learn something new

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subject matter as appropriate.
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Being
Under-insured

Solution:

6 •
•
•
Embrace Life Insurance (& Gen)
Evaluate your insurance needs
Sign-up Appropriately
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subject matter as appropriate.
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Crucial components in Financial Planning

Prudent
Day to Day Debt Management
Where does my money come from &
where does it go? • Good Debt vs Bad Debt
• Interest vs Return
• Budgeting • Restructure
• Expenditure
• Live within your
means

Smart
Investments Protection
• Savings – pay yourself first • Life
• Risk vs Return • Property
• Inflation • Investments

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subject matter as appropriate.
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Budgeting: Guiding principles for a spending plan

Don’t Spend more than this of your net income on…

Housing Transport
<35% <15%
25%

Consumer
65% Others
Debt
10% <25%
<15%

Savings &
Put away at least 10% or More of your Investments
Earnings throughout your working life
≥10%
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subject matter as appropriate.
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Prudent Debt Management

The best time to manage debt is before you incur it. Seek to understand the differences below…

GOOD DEBT BAD DEBT

Money borrowed to pursue options that: Money borrowed to purchase things or do activities that:

֍ Generate Revenue ֍ Quickly Lose Their Value

֍ Grow in Value ֍ Don’t Generate Long Term Income
֍ Generate Long Term Income ֍ Leave you at worse off position
֍ Build Wealth financially
֍ Leave you at better position
financially Also, debt that attracts
very high interest rates

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subject matter as appropriate.
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Prudent Debt Management

Important Aspects Regarding Debt/Credit

֍ Its it necessary or can I do without it?

֍ Do it for the right reason – borrow to invest NOT to
consume. Use the concept of leverage
֍ Weigh your options with different sources of borrowing eg
Banks, Sacco, Shylock, Friends, Mobile Lenders
֍ Understand the terms of borrowing: Tenor, Interest rate,
Insurance, Penalties involved etc - Avoid unrealistic (high)
interests rates
֍ Pay off debt as soon as you can
֍ Consider Debt Consolidation if you are choking from several
debts

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subject matter as appropriate.
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Once ‘in control’….. then what?

What vision do you have for yourself?

What picture do you have of yourself 1, 2, 10 ….years

from now? 5

This will be what drives and guides your financial

decisions

How do you then navigate the ridge?

Document Title 16
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“Compound Interest is the 8th wonder

of the world. He who understands it,
earns it, he who doesn’t….…pays it”

Quote from Albert Einstein

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Smart Investments
Start with saving – PAY YOURSELF FIRST

Saving is an important habit: saving for short- and

long-term goals; and saving for just in case!
How?
• Start Small
• Make Savings Automatic
• Squeeze more out of your budget
• Save the windfalls- Bonus, Gifts, Tax relief
• Save for the long run- retirement!
• Prepare for financial emergencies

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subject matter as appropriate.
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Understanding Your Investment Journey
At Standard Chartered we use a ‘Today, tomorrow Forever’ framework to clearly define your investment
goals that help anchor your investment decisions.

0 – 5 years Time to retirement Legacy for others

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Understanding Your Investment Journey

Applying the framework
Case scenario 1: Just landed my first job

Who am I? TODAY allocation? - (0-5 years)

I have just got my first solid job and 10-20% into creating emergency funds and life & medical protection cover
I am new to investing. INVESTMENT VEHICLES / PROTECTION
Cash equivalents, Fixed Income instruments, High dividend yielding equities,
Life and medical insurance

What do I want? TOMORROW allocation? - (5-30 years)

I want to be able to take care of my expenses and start saving for my future. 80% of savings into long term
INVESTMENT VEHICLES / PROTECTION
Multi asset growth portfolios; Growth stocks, Life insurance cover

My financial needs FOREVER allocation? - (30 years & beyond)

Resources to create an Emergency No
Fund covering my risk to income INVESTMENT VEHICLES / PROTECTION
Nil
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When to Start Investing

Shares/Stocks
• As soon as you have Listed in the Nairobi Securities Exchange

access to money
Traded through Brokers and Banks

• Throughout your Government Bonds and Treasury Bills

lifetime Government Debt securities
Traded through CBK, NSE, Banks and Brokers
One may need a CDS Account

Money Market Funds (Mutual Funds)

Pooled investments managed by professional Fund
Manager.

Real Estate
All activities involving land use: capital gains, Rental
Property (residential, commercial, industrial, raw land,
and special use).

Cash Options
All deposit related options more often issued by banks.

Business Enterprises
Any project or venture undertaken for gain including
farming
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matter as appropriate.
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Investment Options
Consider your options and appetite for RISK

❖ Grow your money

Property
❖ Make sure you are beating Cash and Real
inflation Estate

❖ Boost your earning capacity –

more streams of income Bonds
► Get at least 6 streams of income by
investing in passive income Equities/ Mutual
generating e.g shares, Mutual funds, Stock Funds
rental properties, Sacco, Fixed MMFs
deposits etc

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subject matter as appropriate.
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Offshore Local
SC Shillingi Wealth Mutual government
Fixed
Fund Funds bonds
Income
Builder

Money market International International International Bonds issued

fund unit trusts unit trusts corporate bonds by Kenya
(USD,GBP,EUR) (USD,GBP,EUR) (USD,GBP,EUR) government

Minimum 500 Minimum Minimum Minimum Minimum

KES USD 100 USD 1000 USD 20000 100,000 Kes
Monthly plan Lumpsum only Lumpsum only Lumpsum only
https://www.sc.com/ke/investments/?intcid=p-c-view-all-investments

Document Title 23
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Protecting Yourself, loved ones and Property

Insurance is an important element of any sound financial plan. It protects you
and your loved ones against the cost of accidents, disability and death.
Why?
• Life has value
• You love your family and want continuity- Legacy Planning
• You have worked hard for your wealth- Protect your assets

Without insurance, you’re self-insured: this is always very expensive.

Set aside a portion of your income to take care of various insurance needs
depending on your life stage, aspirations and exposure.

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subject matter as appropriate.
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Insurance Types – General

Motor Insurance
• Insurance against loss/damage from accident, fire, theft or malicious damage
• Political violence and terrorism cover included
• Alternative vehicle, Cost of hotel and cover for forced ATM withdrawal included
• Free valuation of the vehicle annually

Travel Insurance
General Insurance

• A comprehensive cover providing affordable packages including family package

offering for you, your travel companion and dependent children
• The package includes medical expenses, legal liability, cover for cancellation,
travel delays, luggage delay or loss, cash or document loss.
• Get covered for Worldwide business, leisure, Schengen destinations

Home Insurance
• This “Domestic Package” offers protection against loss/damage to you property
• Cover for your Domestic employees
• Cost of Alternative accommodation covered
• Firefighting, Debris Removal included
• Cover for golfers

Motor Commercial & SME Combined

•Focus on running your business as we focus on managing the risks
•Any loss or damage to your commercial vehicle by accidental means, theft, fire, malicious
damage to vehicle and third party liabilities is covered
•SME Combined Cover is comprehensive insurance cover for legal liability to third parties,
damage to office premises and contents, WIBA for your employees, burglary and so much
25 more

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subject matter as appropriate.
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Insurance Types - Life

•Save for a bright future!
•Unique educational insurance cover with guaranteed pay-out of up to Kes 80M.
•Partial maturities paid out in the last 4 years
•Cash benefit on death, Permanent and Total Disability (PTD), & Critical Illness
Educare & •The policy also has a double accident benefit and a waiver of premium rider on
Educare Plus permanent and total disability (PTD) and critical illness.
Life Savings and Protection

•Plan for today, save for tomorrow!

•Guarantees short term liquidity and long-term security.
•Up to KES 10M cash benefit every 4 years,
Super •Total maturity benefit of up to Kes 80M
Endowment Plus •Cover on death, permanent and total disability (PTD), and critical illness

•Life has ups and downs so leave the rainy days to us!
•Immediate cash pay-out for essential funeral expenses to cushion the family from
financial stress.
•Provides cover for you , your spouse, children, parents and extended family
members.
Farewell Plan
•Available on the SC mobile app.

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subject matter as appropriate.
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Retiring With Dignity

⌚ How long do you have until retirement?

60 Official Retirement Age

In Kenya

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subject matter as appropriate.
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Out of 100 people at retirement:

▪ 49 are dependent on family and charity

▪ 29 will be dead
▪ 12 will be broke
▪ 5 will still be working
▪ 4 will be financially independent and
▪ 1 will be rich

Where will you be?

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subject matter as appropriate. Document Title 28
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“8 out of 10 Kenyans are

retiring poor”
Former RBA CEO – Dr. Edward Odundo
Sobering statistic

Document Title 29
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Signs that you may end up in that 80%

1) Spending what you haven’t earned (Car upgrade on loan

in anticipation of bonus)
2) Being a guarantor for a friend on loan you can’t pay
3) Spending before you save
4) Not investing towards retirement/ pension
5) Focusing on immediate needs alone
6) No clear goals
7) Hope is your main strategy

“The team responsible for the content of these presentations confirm that the views expressed reflect their personal opinion(s) about the
subject matter as appropriate. Document Title 30
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Retiring With Dignity

⌚ You will need up-to 70% of your last salary to sustain

your lifestyle after retirement. Do you have a plan?
⌚ The Pension fund will only cater for approximately.
30% of your day-to-day expenses after retirement
• Post Retirement Medical Needs
• Leisure and Recreation
• Children Education
• Legacy Planning
• Business Empire
• Estate management
31 “The team responsible for the content of these presentations confirm that the views expressed reflect their personal opinion(s) about the
subject matter as appropriate.
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Retiring With Dignity

⌚ Enhance your Pension contributions (if you can)
⌚ Set up investments while still working that will give
you cash flow during retirement
⌚ Do not expect your children to be your retirement
plan
⌚ Take advantage of compound interest and
investments that use this principal of growth

32 “The team responsible for the content of these presentations confirm that the views expressed reflect their personal opinion(s) about the
subject matter as appropriate.
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Estate Planning
⌚ Estate planning is the process of anticipating and arranging,
during a person's life, for the management and disposal of that
person's estate during the person's life, in the event the person
becomes incapacitated and after death.

⌚ This is the process of designating who will receive your assets

and handle your responsibilities after your death or
incapacitation. One goal is to ensure beneficiaries receive assets in
a way that minimizes estate tax, gift tax, income tax and other taxes.

33 “The team responsible for the content of these presentations confirm that the views expressed reflect their personal opinion(s) about the
subject matter as appropriate.
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5 benefits of Making a Will

Make Provide Protect Reduce Protect

Make your Provide for Protect your Reduce Protect your
wishes those you children inheritance estate from
known chose tax being
contested

34 “The team responsible for the content of these presentations confirm that the views expressed reflect their personal opinion(s) about the
subject matter as appropriate.
 SC Shilingi Funds
PUBLIC

Local Money Market Funds

Convenient investing Liquidity – Have an emergency?

One stop shop - 100% digital, 24/7 on Need quick access to our investment?
SC Mobile app
Invest in as low as KES 500 Earn competitive interest rates daily

Flexibility – invest one-time, anytime, Power of compounding – monthly

weekly and/or monthly
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Payroll Accounts
Our Tailored Offer on Salary/Payroll Accounts
SC DigiSmart
Hifadhi Account Easy Bundle Account All in One Account
Account
▪ No monthly fee ▪ Credit Card ▪ Monthly fee of KES 1000/- or ▪ Monthly fee of KES 299/-
▪ Monthly fee of KES 499/- USD 15 ▪ Free Salary Processing
▪ ATM Cash withdrawal – KES
35/- ▪ Free unlimited ATM ▪ Free unlimited ATM ▪ Free SCB ATM withdrawals
withdrawals from all SCB
▪ Gold Debit Card (1st – KES withdrawals from all SCB ▪ Free Gold Debit Card
ATM’s ATM’s
300/-
▪ Free Cheque Book ▪ Free Standing Orders between
▪ Cheque Book Card – KES ▪ Free Cheque Book SCB Accounts
300/- ▪ No salary processing fee ▪ No cash handling fee
▪ Free local and foreign
▪ Salary Processing fee – KES ▪ One Local and One Foreign ▪ One Local and One Foreign
Currency Banker’s cheque Telegraphic Funds Transfers
150 Currency Banker’s cheque
Monthly (RTGS/EFT)
▪ Bankers cheque – KES 300 Monthly
▪ Free local and foreign ▪ Gold Card + 360 rewards
▪ Electronic Funds Transfer at ▪ Free local and foreign
Kes.100/- Transfers Transfers ▪ Vet Lab Golf club joining fee,
▪ Infinite Card +360 rewards purchase of golf items & golf
▪ Gold Card + 360 rewards ▪ Platinum Card + 360 rewards training discounts, one year
▪ Vet Lab Golf club joining fee, ▪ Vet Lab Golf club joining fee,
▪ Vet Lab Golf club joining fee, subsection fee waiver
purchase of golf items and golf purchase of golf items & golf
purchase of golf items & golf
training discounts, one year training discounts, one year
training discounts, one year
subsection fee waiver subsection fee waiver
subsection fee waiver
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thank you
for your time

11/04/2024