Modules 1&2: Investments and Money Management Philosophies Fourth Quarter

Malasiqui Catholic School, Inc.

Malasiqui, Pangasinan
SY 2021-2022

LEARNING MODULE
BUSINESS FINANCE Grade 12 – Q4

For your concerns please contact the following:

09318641045 – Subject Teacher
09564911287 – Guidance Office
(075) 632-2390 – Registrar’s Office
(075) 633-3742 – Finance Office
09052984676/09614885506 – Principal’s Office
__________________________________________________________________________________________
INVESTMENTS
COMPETENCIES
1. Compare and contrast the different types of investments.
2. Measure and list ways to minimize or reduce investment risks in simple case problems.

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 Modules 1&2: Investments and Money Management Philosophies Fourth Quarter
PRE-ASSESSMENT:

Let’s find out how much you already know about this module by answering the items below. Take note of the
items that you were not able to correctly answer and look for the right one as you go through in this module. Good
luck!

Multiple Choice
Direction: Choose the letter of the correct answer Write the letter of your choice on the space provided.
___1. What is the main aim of financial management?
a. To increase sales revenue c. To increase shareholder’s wealth
b. To increase market share d. To increase profit
___2. Who is the one responsible in making investment, financial and dividend policy-making decisions of the
firm?
a. Creditors c. Employees
b. Finance Manager d. Suppliers
___3. What is this one right goal for managers?
a. Maximize their remuneration and perks
b. Improve working condition of employees
c. Maximize shareholders’ wealth
d. Increase the market share
___4. Which is a part of top management of the company?
a. Chief Executive Officer c. Creditors
b. Suppliers d. Vice President in Finance
___5. Which is one of the ultimate goals of the finance manager?
a. Maximize market price of shares of stocks
b. Maximize liabilities
c. Maximize profit
d. Maximize asset
___6. Which of the following is part of financial decision making?
a. Financing decision c. Investment decisions
b. Dividend decisions d. All of the above
___7. Which is concerned with allocating, raising, and controlling of the funds of the firm?
a. Finance c. Financial Management
b. Budgeting d. Accounting
___8. Which is an efficient allocation of funds to specific assets?
a. Financing c. Dividends
b. Assets d. Investing
___9. The finance manager is responsible in maximizing the value of the utility owned by
a. Creditors c. Board of Directors
b. Investors d. Banks
___10. Which is a NOT a factor that influence market price?
a. Profitability c. Political stability
b. Competent management d. Marketing strategy

EXPLORE
Are your ready to learn about Investments? If so, then you may start this module by accomplishing the
first activity.
See attached Activity 1: MY EDUCATION, MY INVESTMENT on page 8.

FIRM UP
The next part of this module will help build your knowledge about Business Finance. Read the concept notes
and do the activities that follow.

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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter
INVESTMENTS
INTRODUCTION AND FOCUS QUESTION/S
You may be wondering why you have to give so much importance to “investment,’ when you can work towards
saving more from your earnings instead.
Taking a portion of your income and saving each month will only create a reserve fund, which may prove to be
inadequate in covering your family against a medical emergency.
How do we manage our personal finances or business-related finances? Many says that saving a penny will help
improve our financial status or having a high salary job or big business will make us rich. Is it simply saving,
working, and earning? Or we need to invest part of our savings?
WHAT IS INVESTMENT?
An investment is essentially an asset that is created with the intention of allowing money to grow. The
wealth created can be used for a variety of objectives such as meeting shortages in income, saving up for
retirement, or fulfilling certain specific obligations such as repayment of loans, payment of tuition fees, or
purchase of other assets.
Investment may generate income for you in two ways. One, if you invest in a saleable asset, you may
earn income by way of profit. Second, if investment is made in a return generating plan, then you will earn an
income via accumulation of gains. In this sense, ‘what is investment’ can be understood by saying that
investments are all about putting your savings into assets or objects that become worth more than their initial
worth or those that will help produce an income with time.
Financially speaking, an investment means an asset that is obtained with the intention of allowing it to
appreciate in value over time. Generally, investments fall in any one of three basic categories, as explained
below.
An investment is an asset or item acquired with the goal of generating income or appreciation.
Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an
investment, the intent is not to consume the good but rather to use it in the future to create wealth
Investment vs. Savings
Savings simply mean putting aside a part of your earnings over time. The saved amount of money is
subject to no risk and, therefore, does not help you earn any profits or returns. However, its value appreciation
remains more or less stagnant, as there is no addition over and above what you add each month.
Investment is based on the concept of earning returns or profit on the money you first put in a fund or
spent on an asset purchase. Remember here that the involvement of risk is what makes them profitable.
When understanding ‘what is investment,’ remember that there is a direct relation between returns and
risk, meaning more significant the risk involved, higher are the chances of earning greater returns.
Purpose of Investment
Different individuals have different purposes of investing depending upon their life goals. Some people
invest for their retirement while others invest in a luxurious lifestyle. Thus, the purpose of investment varies
from person to person. Investments can be long-term or short-term depending upon your requirements. For
example: if you are planning to buy a home, then you will look for long-term investment plans and if you are
planning to buy a laptop, then you will look for short-term investment plans. However, the key idea behind the
investment is the same i.e., long term capital gains.
The purpose of investment can be summarized as follows:
 To keep money safe
 To save up for retirement
 To help money grow
 To meet your financial goals

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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter

KINDS OR TYPES OF INVESTMENTS

Four main types of investments:
1. DEBT INVESTMENTS - are technically a type of investment nearly everyone has. You are theoretically
loaning your money to borrowers and getting interest paid on it. This is how bank savings and CD accounts
work, although these usually pay the lowest amount in interest. The main kind of debt investments that pay
more interest are bonds, either lower interest long-term government bonds, other higher interest corporate
bonds. Some bonds known as high-yield or junk bonds pay a substantial amount of interest provided the
borrower doesn’t default. For the most part though, debt investments are pretty steady in earnings.
2. EQUITY INVESTMENT - involve taking an ownership or holding in a company or certain other assets.
Equity investments would primarily be stocks, though related funds such as ETFs, mutual funds, contracts such
as options or futures, and other shares in commodities that can be traded. According to the experts at SoFi
Invest, “You can buy stocks in the form of individual equities, mutual funds, exchange-traded funds, and more.
Your potential rate of return will differ based on the types of stocks you purchase and how risky they are.”
Equity investments can offer a little more than debt investments in that you aren’t getting returns simply from
interest paid on borrowed money. You’re getting returns when companies do well in sales and profits, or when
they grow rapidly. While certainly most stocks will yield returns at a little higher rates than bonds, there is
theoretically no limit to how much they could.
3. HARD ASSETS - are investments in physical items that have high value, and that don’t have the drawbacks
of debt default or bankruptcy. They do have their own sets of risks though, and their markets can be quite
volatile. The most well-known hard asset is real estate, usually investment property real estate which has value
not only in the land and buildings, but also from tenants who pay rent. But home flipping and commercial
property ownership is also a form of real estate investing. But beyond real estate, items like vintage cars and
precious metals can also be invested in.
4. INSURANCE PRODUCTS - are a bit different in terms of how you get returns from them. But they do have
investment value in them with things such as life insurance or annuities. Life insurance has different options
from term life to cash value policies, but it does work in case a head of a household passes away, and you can
usually find a way to sell it off when you no longer need it. Annuities are a little more like other investments
and can include buying bonds or other equities. But they’re insurance products that you buy that offer lifetime
income once you reach retirement and start getting your payouts. Annuities have different forms and come with
some advantages over other investments. But they also have a lot of drawbacks, so it’s good to weigh them
against other investment choices.
Top Investments here in the Philippines
1. Securities - Securities are paper assets that are a proof of partial interest or ownership in a business, such as
company stocks, preferred shares, and real estate investment trust (REIT). They can also be debt instruments,
such as corporate bonds, government bonds, retail treasury bonds, treasury bills and long term negotiable
certificate of deposit.
- company stocks
- preferred shares
- corporate and government bonds
- treasury bills
- long term negotiable certificate of deposit

2. Managed funds- For most Filipinos, owning individual securities may require time and expertise that they
don’t have. So they’re better off letting an investment house manage them on their behalf. This is what managed
funds are for. Examples are mutual funds, unit investment trust funds, exchange traded fund, Personal Equity
and Retirement Account, and variable universal life policies.
- mutual funds
- unit investment trust fund
- exchange traded fund
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- Personal Equity and Retirement Account (PERA)
- variable universal life policy

3. Government savings program - State-run entities have savings programs that are made available for Pinoys
who want to earn passive income. The Pag-ibig MP2 is quite popular due to its dividends that are consistently
higher than interest earned from some banking products. Social Security System also has two similar programs:
SSS Flexi-Fund and SSS PESO Fund.
- Pag-ibig MP2
- SSS Flexi Fund
- SSS PESO Fund

4. Bank products
- High-yield savings account
- Time deposit

5. Trading - If you have the time of the day and the patience to learn, you can also engage in trading securities
such as investing in the stock market, cryptocurrency and forex markets. You got to be ready to allocate time
when the markets of these securities are open, and you will also need to have the expertise in knowing what and
when to trade.
- Stocks
- Forex
- Cryptocurrency

6. Cooperatives - Another easily overlooked alternative is the cooperative. There are many kinds of
cooperative operating in the country, offering products and services to members including deposit accounts that
can earn interest. You may want to check one located near you.
7. Crowdfunding - Crowdfunding is a way for small and medium businesses, social causes, and other
enterprises to get the capital they need to pursue their ventures. The crowdfunding platforms allow the public to
invest their money on selected projects, and they can earn when these projects become successful in turning up
a profit.
8. Small business - Lastly, there is always the option to open a small business. It can be in the form of a brick-
and-mortar store or an online shop selling goods and services. This may be a chance for you to pursue your
passion project or turn your hobbies into income-generating side-hustles.
9. Real estate - Acquiring real estate is also another way to invest. It may require huge capital and years for
mortgage payments should you purchase a property on a loan. In exchange, you can earn from rental income or
you may also engage in buying and selling properties.
WHAT IS INVESTMENT RISK?
Investment risk is defined as the probability or uncertainty of losses rather than expected profit from
investment due to a fall in the fair price of securities such as bonds, stocks, real estate, etc. Each type of
investment is exposed to some degree of investment risk like the market risk i.e., the loss on the invested
amount or the default risk i.e., the money invested is never returned back to the investor.

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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter
1. Market Risk -is the risk of an investment losing its value due to various economic events that can affect the
entire market. The main types of market risk include:
a. Equity Risk: This risk pertains to the investment in the shares. The market price of the shares is volatile and
keeps on increasing or decreasing based on various factors. Thus, equity risk is the drop in the market price of
the shares.
b. Interest Rate Risk: Interest rate risk applies to the debt securities. Interest rates affect the debt securities
negatively i.e., the market value of the debt securities increases if the interest rates decrease.
c. Currency Risk: Currency risk pertains to foreign exchange investments. The risk of losing money on foreign
exchange investments because of movement in the exchange rates is currency risk. For example, if the US
dollar depreciates to Indian Rupee, the investment in US dollars will be of less value in Indian Rupee.
2. Liquidity Risk - the risk of being not able to sell the securities at a fair price and converting into cash. Due
to less liquidity in the market, the investor might have to sell the securities at a much lower price, thus, losing
the value.
3. Concentration Risk - is the risk of loss on the invested amount because it was invested in only one security
or one type of security. In concentration risk, the investor loses almost all of the invested amount if the market
value of the invested particular security goes down.
4. Credit Risk - the risk of default on the bond issued by a Company or the government. The issuer of the bond
may face financial difficulties due to which it may not be able to pay the interest or principal to the bond
investors, thus, defaulting on its obligations.
5. Reinvestment Risk -the risk of losing higher returns on the principal or income because of the low rate of
interest. Consider a bond providing a return of 7% has matured, and the principal has to be invested at 5%, thus
losing an opportunity to earn higher returns.
6. Inflation Risk - the risk of loss of purchasing power because the investments do not earn higher returns than
inflation. Inflation eats away the returns and lowers the purchasing power of money. If the return on investment
is lower than the inflation, the investor is at a higher inflation risk.
7. Horizon Risk - the risk of shortening of investment horizon due to personal events like loss of job, marriage
or buying a house, etc.
8. Longevity Risk - is the risk of outliving the savings or investments, particularly pertain to retired or nearing
retirement individuals
9. Foreign Investment Risk - is the risk of investing in foreign countries. If the Country as a whole is at risk of
falling GDP, high inflation, or civil unrest, the investment will lose money.
INVESTMENT RISK MANAGEMENT
Although there are risks in investment, these risks can be managed and controlled. Various ways of
managing the risks include:
1. Diversification includes spreading investment into various assets like stocks, bonds, and real estate, etc. This
helps the investor as he will gain from other investments if one of them does not perform. Diversification can be
achieved across different assets and also within the assets (e.g., investing across various sectors when investing
in stocks).
2. Investing Consistently (Averaging): By investing consistently i.e., investing small amounts at regular
intervals of time, the investor can average his investment. He will sometime buy high and sometimes buy low
and maintain the initial cost price of the investment. However, if the investment rises in the market price, he
will gain on the whole investment.
3. Investing for the Long Term: Long-term investments provide higher returns than short-term investments.
Although there is short-term volatility in the prices of securities, however, they generally gain when invested
over a longer horizon (5,10, 20 years).

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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter
ADVANTAGES/DISADVANTAGES OF INVESTMENT
(Barry Burns: https://www.dummies.com/personal-finance/investing/advantages-and-disadvantages-of-investing/)

Advantages of investing:
The investing time frame is the most popular. Because it’s less active, the term trading is not used for
investing. Following are some of the advantages of investing, particularly compared to trading:
• Investing is the least “active” approach to participating in the markets. It can be good for those who have an
interest in the markets but don’t have enough interest in it to make it a part of their daily or weekly schedule.
• Some people have extreme difficulty doing short-term trading. Some, in fact, believe it’s impossible to
determine short-term moves with consistent accuracy. For such people, investing may be a good choice.
• Holding a position for more than a year potentially allows you to tap into the long-term capital gains tax,
which is generally a lower tax rate than short-term capital gains tax. (This is not meant to be tax advice. Please
consult a competent and qualified tax professional for details about taxes as they apply to the time you’re
reading this and to your individual situation.)
Disadvantages of investing:
Investing also has some disadvantages that should be considered and weighed against the advantages.
Ultimately, it’s up to you to decide whether the advantages outweigh the disadvantages for you and your
lifestyle. Remember also that you don’t need to be an investor to the exclusion of being a trader.
Here are some of the disadvantages of investing over against trading:
• Of the three- time horizons, investing can be the slowest way to make money, assuming that you could be an
excellent swing trader or day trader.
• Because investing reuses the same capital very infrequently, the annual returns are generally not as good as a
successful professional trader. Earning an average 10% return annually may be considered acceptable for an
investor. However, some day traders have made 10% returns in a week! That’s certainly not meant to be an
income claim, nor is that normal, but, yes, it does happen.
• Investors notoriously have a very difficult time outperforming the market — making investing decisions that
result in a better return than if you simply invested that same money into an equity index fund, such as the S&P
500, and didn’t touch it. Even many professional fund managers aren’t able to do that for their clients after
costs.

See attached Activity 2: DOES INCOME REFLECT WEALTH? on page 9

See attached Activity 3: GOOD INVESTMENTS on page 9

DEEPEN
See attached Activity 4: JOB AS AN INVESTMENT on page 9

TRANSFER
See attached Activity 5: MY FUTURE INVESTMENTS on pages 9-10

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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter

BUSINESS FINANCE 12: INVESTMENTS

Name: ____________________________________________Grade and Section:________________________

Contact Number:____________________________________Address_________________________________
Subject Teacher: Mr. John Lester P. Garcia

Important!!! DETACH AND SUBMIT ONLY PAGES 8 - 10 to your Subject Teacher!

EXPLORE
ACTIVITY 1: MY EDUCATION, MY INVESTMENT
Directions: Recall your allowances and expenses from grade 7 to 12 and list them all in the table below
(realistic estimate). To answer the column for College, you may ask someone virtually if not
physically present who is currently enrolled as a college student so you can give a realistic
estimation of fees and expenses.

Details Junior High School Senior High School College

Tuition and Other Fees Gr7 Gr11 I-1 Sem
st

Gr8 GR12 2nd Sem

Gr9 II-1st Sem
Gr10 2nd Sem
III-1st Sem
2nd Sem
IV- 1st Sem
2nd Sem

Total
Allowances Gr7 Gr11 I-1st Sem
(includes foods and Gr8 Gr12 2nd Sem
Transportation) Gr9 II-1st Sem
Gr10 2nd Sem
III-1st Sem
2nd Sem
IV- 1st Sem
2nd Sem

Total

Grand Total:

Questions:
1. What is the Grand total of your estimated expenses in:
a. Junior High School?
b. Senior High School?
c. College?
2. Is the amount you spent and will spend related to your education a good investment? Explain.
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

3. Now that you know the estimated amount you will consume when you go to College, will you give
importance to finishing your chosen degree with good academic standing or just be a happy go lucky college
student does not care whether you fail or pass your subjects?
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter
FIRM UP
ACTIVITY 2: DOES INCOME REFLECT INCOME?
Directions: Provide the needed information and explanation in the following questions.
1. Name two (2) personalities that belong to the “Richest man in the world”. How did they become rich?
__________________________________________________________________________________________
__________________________________________________________________________________________

2. Name two (2) famous celebrities who belonged to top highest paid celebrities in the world.
__________________________________________________________________________________________
__________________________________________________________________________________________

3. Name two famous personalities/celebrities who became rich but eventually lost their wealth.
__________________________________________________________________________________________
__________________________________________________________________________________________

Reflection:
Do high pay, income, salary make a person rich? Explain.
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

DEEPEN
ACTIVITY 3: GOOD INVESTMENTS
Directions: Give at least 5 examples of investments that you know.






Do you consider all your answers as good investments? Explain.
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

ACTIVITY 4: JOB AS AN INVESTMENT

Directions: Answer the question comprehensively.
Do you consider a good job or career as an investment? Why?
__________________________________________________________________________________________
__________________________________________________________________________________________
__________________________________________________________________________________________

TRANSFER
ACTIVITY 5: MY FUTURE INVESTMENTS? (Performance Task)
Directions: Make a reflective essay about the question below.

Do you consider the following as your future investments? Explain each item.
 Self
 Family
 Relationship
 Education
 Belief / Values
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Criteria for Grading Activity 5

Level of Proficiency
Criteria
Advanced Very Proficient Proficient Less Proficient Beginner

Significance/ All problems The problems ate The problems The problems The problems are
Relevance to real formulated are based on are based on are not that not based on real-
life (10) based on different different reallife real-life relevant today. life situations.
reallife situations situations. (8) situations, but (6) (below 6).
and problems that some of which
affect people, deal with only
particularly one aspect of
Filipinos, today. (9 everyday
to 10) life. (7)
Level of difficulty At least four of the Three of the Two of the Most problems All problems are
(10) problems are problems are problems are are one-step simple one-step
multi-level and/or multi-level multi-level problems. (6) problems that do
require higher- and/or require and/or require not require logical
order thinking higher-order higher-order thinking skills.
skills. (below
thinking skills. (8) thinking skills.
(9 to 10) 6)
(7)
Strategies applied All problems are Only four of the Only three of Only two of the Only one or none
to solve problems solved using problems are the problems problems are of the problems
(10) appropriate solved using are solved using solved using are solved using
strategies. (9 to appropriate appropriate appropriate appropriate
10) strategies. (8) strategies. strategies. strategies. (below
(7) (6)
6)

MODULE 2: MONEY MANAGEMENT PHILOSOPHIES

COMPETENCIES
1. Enumerate money management philosophies.
2. Illustrate the money management cycle and gives to 4 examples of sound practices in earning, spending,
saving, and investing money.

PRE-ASSESSMENT:

Let’s find out how much you already know about this module by answering the items below. Take note of the
items that you were not able to correctly answer and look for the right one as you go through in this module. Good
luck!

Identification
Direction: Identify what component of financial planning process the following statement is describing to.
Choose the letter of your answer from the table.

Objective Setting Data Gathering Data Analysis

Financial Plan Recommendation Plan Implementation Plan Monitoring

__________1. Quantify monetary objectives with definite time frames.

__________2. Analyze the individual’s financial position and cash flows.
__________3. Assist the individual in the execution of the recommended financial plan.
__________4. Examine these objectives with an individual’s resources and limitations.
__________5. Review the financial plan periodically to evaluate changing market conditions
__________6. At this point, the individual can comment on the proposed solutions.
__________7. Use surveys, questionnaires, and interviews to gather information.
__________8. Evaluate objectives vis-à-vis the individual’s resources and economic conditions.
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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter
__________9. Evaluate the financial plan regularly to see if it effectively meets the individual’s goals and
objectives.
__________10. Propose financial products.

EXPLORE
Are your ready to learn about Money Management Philosophies? If so, then you may start this module
by accomplishing the first activity.
See attached Activity 1: MY PERSONAL FINANCE PHILOSOPHY 101 on page 14

FIRM UP
The next part of this module will help build your knowledge about Business Finance. Read the concept notes
and do the activities that follow.
AREAS OF PERSONAL FINANCE
The main areas of personal finance are income, spending, saving, investing, and protection. Each of these areas
will be examined in more detail below.
INCOME
Income refers to a source of cash inflow that an individual receives and then uses to support themselves and
their family. It is the starting point for our financial planning process.
Common sources of income are:
• Salaries
• Bonuses
• Hourly wages
• Pensions
• Dividends
These sources of income all generate cash that an individual can use to either spend, save, or invest.

SPENDING
Spending includes all types of expenses an individual incurs related to buying goods and services or anything
that is consumable (i.e., not an investment). All spending falls into two categories: cash (paid for with cash on
hand) and credit (paid for by borrowing money). The majority of most people’s income is allocated to spending.
Common sources of spending are:
• Rent
• Mortgage payments
• Taxes
• Food
• Entertainment
• Travel
• Credit card payments

The expenses listed above all reduce the amount of cash an individual has available for saving and investing. If
expenses are greater than income, the individual has a deficit. Managing expenses is just as important as
generating income, and typically people have more control over their discretionary expenses than their income.
Good spending habits are critical for good personal finance management.

SAVING
Saving refers to excess cash that is retained for future investing or spending. If there is a surplus between what a
person earns as income and what they spend, the difference can be directed towards savings or investments.

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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter
Common forms of savings include:

• Physical cash
• Savings bank account
• Checking bank account
• Money market securities

Most people keep at least some savings to manage their cash flow and the short-term difference between their
income and expenses. Having too much savings, however, can actually be viewed as a bad thing since it earns
little to no return compared to investments.

INVESTING

Investing relates to the purchase of assets that are expected to generate a rate of return, with the hope that over
time the individual will receive back more money than they originally invested. Investing carries risk, and not
all assets actually end up producing a positive rate of return. This is where we see the relationship between risk
and return.

Common forms of investing include:

• Stocks
• Bonds
• Mutual funds
• Real estate
• Private companies
• Commodities
• Art

Investing is the most complicated area of personal finance and is one of the areas where people get the most
professional advice. There are vast differences in risk and reward between different investments, and most
people seek help with this area of their financial plan.
PROTECTION
Personal protection refers to a wide range of products that can be used to guard against an unforeseen and
adverse event.
Common protection products include:
• Life insurance
• Health insurance
• Estate planning

This is another area of personal finance where people typically seek professional advice and which can become
quite complicated. There is a whole series of analysis that needs to be done to properly assess an individual’s
insurance and estate planning needs.
The Personal Finance Planning Process
Good financial management comes down to having a solid plan and sticking to it. All of the above areas of
personal finance can be wrapped into a budget or a formal financial plan.

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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter
Generally speaking, the main components of the financial planning process are:

A. Objective Setting
• Quantify monetary objectives with definite time frames.
• Prioritize objectives.
• Examine these objectives with an individual’s resources and limitations.

B. Data gathering
• Use surveys, questionnaires, and interviews to gather quantitative and qualitative information from the
individual.
• Quantitative – for assessing financial status (i.e. investments, cash flow, liabilities,etc.)
• Qualitative – to identify individual’s goals and objectives, lifestyle, risk-tolerance, etc.

C. Data Analysis
• Analyze the individual’s financial position and cash flows.
• Review legal papers (i.e. insurance policies, trust agreements, will, etc.).
• Evaluate objectives vis-à-vis the individual’s resources and economic conditions.

D. Financial Plan Recommendation

• Propose financial products.
• At this point, the individual can comment on the proposed solutions.

E. Plan Implementation
• Assist the individual in the execution of the recommended financial plan.
• Implementation may involve other entities so assist the individual in dealing with the parties involved in the
execution of the financial plan.

F. Plan Monitoring
• Review the financial plan periodically to evaluate changing market conditions (i.e. economic conditions, taxes,
interest rates, etc.).
• Evaluate the financial plan regularly to see if it effectively meets the individual’s goals
and objectives.

See attached Activity 2: MY FUTURE SELF on page 14

See attached Activity 3: MY PERSONAL FINANCE PHILOSOPHY on page 15
DEEPEN
See attached Activity 4: SHOW ME THE MONEY: REACHING YOUR GOALS on page 15
TRANSFER
See attached Activity 5: MY MONEY MANAGEMENT CYCLE (Performance Task) on page 16

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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter

BUSINESS FINANCE 12: MONEY MANAGEMENT PHILOSOPHIES

Name: ____________________________________________Grade and Section:________________________

Contact Number:____________________________________Address_________________________________
Subject Teacher: Mr. John Lester P. Garcia

Important!!! DETACH AND SUBMIT ONLY PAGES 14 - 16 to your Subject Teacher!

EXPLORE
ACTIVITY 1: MY PERSONAL FINANCE PHILOSOPHY 101
Directions: Give at least 5 Personal Philosophies that fits you and explain each. Your own composition of
personal philosophy is much appreciated. An Example is given below.

Example: “Live below your means”. If you want to save, do not live within your means, instead live below your
means. It means, do not spend all your earnings.

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FIRM UP
ACTIVITY 2: MY FUTURE SELF
Directions: Visualize yourself after 5 years. Describe your financial status after 5 years, after 10 years, then
after 20 years.
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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter

DEEPEN
ACTIVITY 3: MY PERSONAL FINANCE PHILOSOPHY
Directions: Select 2 Philosophies related to Financial Management. Discuss how these will guide you in your
financial management.

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ACTIVITY 4: SHOW ME THE MONEY: REACHING YOUR GOALS

Directions: Fill in the circles below to see how you can start reaching one of your goals today.

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Modules 1&2: Investments and Money Management Philosophies Fourth Quarter

TRANSFER
ACTIVITY 5: MY MONEY MANAGEMENT CYCLE (Performance Task)
Directions: Create your own Money Management Cycle. Discuss briefly.

Rubric for Grading Activity 5

Level of Proficiency
Criteria
Advanced Very Proficient Proficient Less Proficient Beginner

Significance/ All problems The problems ate The problems The problems The problems are
Relevance to real formulated are based on are based on are not that not based on real-
life (10) based on different different reallife real-life relevant today. life situations.
reallife situations situations. (8) situations, but (6) (below 6).
and problems that some of which
affect people, deal with only
particularly one aspect of
Filipinos, today. (9 everyday
to 10) life. (7)
Level of difficulty At least four of the Three of the Two of the Most problems All problems are
(10) problems are problems are problems are are one-step simple one-step
multi-level and/or multi-level multi-level problems. (6) problems that do
require higher- and/or require and/or require not require logical
order thinking higher-order higher-order thinking skills.
skills. (below
thinking skills. (8) thinking skills.
(9 to 10) 6)
(7)
Strategies applied All problems are Only four of the Only three of Only two of the Only one or none
to solve problems solved using problems are the problems problems are of the problems
(10) appropriate solved using are solved using solved using are solved using
strategies. (9 to appropriate appropriate appropriate appropriate
10) strategies. (8) strategies. strategies. strategies. (below
(7) (6)
6)

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