Barranco, Cristel Mae L.

BSE ENGLISH 2-1

REFLECTION PAPER: IMPORTANCE OF FINANCIAL LITERACY TO YOUTH

I grew up with enough food at the table, enough money to spend on my daily
necessities, enough sources to do the things I want. However, there are times that I find
it hard to fit all my expenses in my weekly allowance and I wonder where my money goes
and how instantly it slips from my fingers. Understanding the concept of financial literacy
taught me how to categorize my needs and wants, compartmentalize the things I need to
prioritize first and instill the mentality not to save what was left but saving must come first.
Initially, I thought to myself, why would I need to learn about financial matters when I am
still a student and don't earn money like what parents and siblings do. I thought when it
comes to finances, it associates only with people who have salary and responsibilities to
pay off bills. But clearly, I was wrong. We need to teach students as early as possible or
suggestively the moment they have acquired proper developmental skills to understand
how finances work even when they don’t have a job.

That’s why I began contemplating how to spend my money. I analyze my actions

when it comes to buying so I asked myself: am I an impulsive buyer? Am I the kind of
person who uses money to bring pleasure to myself? Am I more likely to spend that to
save? Do I place very little importance on having money and would rather be practical
and creative than buy things? Or finally, do I spend money for self-worth that I seek what
people would think of how much I have? As Boy Abunda said on the video, spending
money, even on a tight budget just to show off or portray the things you acquire on social
media so people will assume the lifestyle you have has become a social norm or what we
call stereotype. When we see a person’s post on Instagram, for instance, drinking
Starbucks, people say, “Wow, rich kid may pang-Starbucks” and another example, a
person is using an Iphone, people would say, “Naks, Iphone! Yaman!” This kind of
behavior can influence how a person purchases things. Sometimes, they go out of their
means just to accumulate luxurious things and to express their social status.
 As a thirteen year old girl, I have been accustomed to taking care of my own money
although sometimes, I can’t help but to be a little petty on the things I buy. It’s not that we
have the luxury to spend it, I understood at a young age that we’re not opulent but have
a kind of lifestyle where everything is in the state of being enough. That’s why I have
learned to live just within my means and I perceived this as a silver lining because it taught
me to be practical and thrifty and to appreciate things that I have and what my family can
provide for me. This kind of mentality has broadened my understanding about handling
my money. In a definitive perspective, the importance of Financial literacy is crucial for us
since it will provide us with the information and skills to efficiently manage our money. In
the absence of the same, our actions and decisions about savings and investments would
lack a solid foundation. However, financial literacy will assist us in better understanding
financial concepts and in managing your resources. It will also assist you in making good
investment decisions and reaching financial stability.

One thing I have learned deeply in the video is that we can actually live below our
means even without feeling deprived and I aspire to have a lifestyle like that when I start
earning my own money. Living below our means isn’t just about cutting costs and saving
money. It is about taking control of your money, so it doesn’t control you. I also want to
relate to Boy Abunda’s way of saving his money when he was a student. When I was in
my senior year, we had face-to-face classes. I had a 300 pesos allowance every day. 100
pesos is already consumed by my transportation fee so I had to work with 200 pesos left:
my food, class funds, print, and other expenses. But, I always keep in mind to take at
least 20 to 50 pesos to save. Good thing about me, I don’t get pleasure or any satisfaction
from material things. I remember my Mother asked me what I want as a reward for being
part of the honor roll in our class. I told her I just wanted to eat something delicious with
them. Saving money means a lot to me. I may not figure it out yet what do I want with my
money now, I want to make sure I have a safety net in case of emergencies and
unexpected turn of events as it doesn’t only help and benefit me, but to the people around
me and for my future as well.