Financial

Literacy
Reporters:
Opaon, Ian Jones L.
Jeminez, Junelyn M.
What is Financial
Literacy?
 What Is Financial Literacy?
*The term “financial literacy” refers to a variety of
Financial Literacy important financial skills and concepts.
*Financial literacy can be obtained through reading books,
listening to podcasts, subscribing to financial content, or
talking to a financial professional.
Financial literacy is the ability to understand *People who are financially literate are generally
and effectively use various financial skills, less vulnerable to financial fraud. *Being financially illiterate can lead to a number of
including personal financial management, pitfalls, such as being more likely to accumulate
budgeting, and investing. When you are *A strong foundation of financial literacy can help unsustainable debt burdens, either through poor spending
financially literate, you have the foundation support various life goals, such as saving for decisions or a lack of long-term preparation. This, in turn,
of a relationship with money, and it is a education or retirement, using debt responsibly, can lead to poor credit, bankruptcy, housing foreclosure,
lifelong journey of learning. The earlier you and running a business. and other negative consequences.
start, the better off you will be, because
education is the key to success when it comes *Financial literacy can help protect individuals from
*Key aspects to financial literacy include knowing
to money. becoming victims of financial fraud, a type of crime that is
how to create a budget, plan for retirement,
becoming more commonplace.
manage debt, and track personal spending.
 From day-to-day expenses to long-term
budget forecasting, financial literacy is
WHY crucial for managing these factors. It is
important to plan and save enough to
FINANCIAL provide adequate income in retirement
while avoiding high levels of debt that
LITERACY might result in bankruptcy, defaults,
and foreclosures.
MATTERS?
 BENEFITS OF
FINANCIAL LITERACY
Holistically, the benefit of financial literacy is to empower individuals to make smarter decisions. More specifically, financial literacy is
important for a number of reasons.

Financial literacy can prevent devastating mistakes: Floating rate loans may have different interest rates each month, while traditional
individual retirement account (IRA) contributions can’t be withdrawn until retirement. Seemingly innocent financial decisions may have
long-term implications that cost individuals money or impact life plans. Financial literacy helps individuals avoid making mistakes with
their personal finances.

Financial literacy prepares people for emergencies: Financial literacy topics such as saving or emergency preparedness get individuals ready
for the uncertain.

Financial literacy can help individuals reach their goals: By better understanding how to budget and save money, individuals can create plans
that set expectations, hold them accountable to their finances, and set a course for achieving seemingly unachievable goals. Though someone
may not be able to afford a dream today, they can always make a plan to better increase their odds of making it happen.
 WHAT IS A FINANCIAL GOAL?

A financial goal is any plan you have for your money. You can have
short-term financial goals (like saving up $1,000) or long-term
financial goals (like investing for retirement). You should set goals
for every area of your life, but having specific financial goals helps
you literally put your money where your goal is.
5 STEPS TO SETTING FINANCIAL
GOALS

1. Make your goal specific.

2. Make your goal measurable.
3. Give yourself a deadline.
4. Make sure they’re your own goals.
5. Write your goal down.
Tips:
Financial stability does not always mean wealth, but financial
sufficiency as defined by each person. In order to build a
financial stability, it normally takes time by collecting enough
funds for general living in the future and emergency incidents
that may occur. Here are 7-step instructions.
 7 STEPS
INSTRUCTIONS
 7 Steps Instructions

One Two Three Four

Invest in yourself Make money from what you like Set saving and expense budgets Spend wisely

To earn a living with what you like is

Having further education, more Recording your expenses regularly is Even though you earn more, it
a good start, as you tend to be happier,
knowledge, and required skills for
bear with it longer, and be eager to necessary. This is to monitor your does not mean that you have to
work can support your career spending pattern and use it for further spend more, especially on
learn more about it.
advancement. financial planning. unnecessary and too luxurious
stuff.

Five Six
Set emergency fund Pay off debts Seven
Plan for retirement
Economic uncertainty, illnesses, and Loans with high interest rate such as
accidental incidents can be happened personal and credit card loans should Some may think it is too far to
at any time. To set an emergency be paid off as quickly as you can and plan. However, the earlier you
fund for yourself, it is a must. stop making these kinds of debt again. can save for retirement.