Prof Ed 10. Financial Literacy

SHEPHERDVILLE COLLEGE
(FORMERLY JESUS THE LOVING SHEPHERD CHRISTIAN COLLEGE)

Talojongon, Tigaon, Camarines Sur, Philippines
Tel. No. (054) 884-9536 E-mail: shepherdvillecollege403750@gmail.com
“Excellence in truth in the service of God and Country”
Prof Ed 10. BUILDING AND ENHANCING NEW LITERACIES AROSS THE

CURRICULUM
Topic/Concept: FINANCIAL LITERACY

02. Demonstrate content knowledge and pedagogy of
Competency: the Financial Literacy
Term: Finals
I. INTRODUCTION
In some instances, teachers are confronted with issues and concerns about
financial debt, being victimized by fraud and other related scams, both in
personal and electronic ways. More so, some teachers are drowned by emergent
financial needs and unexpected debt, especially in difficult times, sickness
inevitable circumstances, and calamities. Others do not prepare for their
retirement and they usually end up highly frustrated. This is the reason why
financial literacy has been a subject in many faculty development programs,
and seminars, and even becomes a topic for research, while many schools have
integrated it into the curriculum.
II. OBJECTIVES/ LEARNING OUTCOMES

1. Explain financial literacy
2. Distinguish among financial plan, budgeting, saving, spending and
investing
3. Present ways on how to avoid financial crises and scams
4. Demonstrate understanding of insurance and taxes
5. Describe a financially stable person
6. Determine ways how to integrate financial literacy in the curriculum
7. Draw relevant life lessons and significant values from personal experiences.
(on financial crises and scams)
8. Analyze the research abstract on financial literacy and its implications to
the teaching-learning process
9. Make a personal financial plan based on short-term and long-term goals
III. DEFINITION OF TERMS
 Financial Literacy. The ability to make informed judgments and make

effective decisions regarding the use and management of money.
 Saving. Saving is putting money aside. It involves reducing expenditures,

such as recurring costs.
 Budgeting. Budgeting is a process of creating a plan to spend your money.

Balancing expenses with income.
IV. CONTEXT
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1|P a g e 21 Century Education
FINACIAL LITERACY
Financial literacy is a core life skill in an increasingly complex world where people
need to take charge of their own finances, budget, financial choices, managing risks,
saving, credit, and financial transactions.
Poor financial decisions can have a long-lasting impact on individuals, their

families and the society caused by lack of financial literacy. Low levels of financial
literacy are associated with lower standards of living, decreased psychological and
physical well-being and greater reliance on government support. However, when put
into correct practice, financial literacy can strengthen savings behavior, eliminate
maxed-out credit cards and enhance timely debt.
Financial literacy is the ability to make informed judgments and make effective
decisions regarding the use and management of money Hence, teaching financial
literacy yields better financial management skills.
The importance of starting financial literacy while still young.
National surveys show that young adults have the lowest levels Of financial
literacy as reflected in their inability to choose the right financial products and lack
of interest in undertaking sound financial planning. Therefore, financial education
should begin as early as possible and be taught in schools. Akdag (2013) stressed
that in the recent financial crisis, financial literacy is very crucial and tends to be
advantageous if introduced in the very early years as preschool years. Financial
education is a long-term process and incorporating it into the curricula from an early
age allows children to acquire the knowledge and skills while building responsible
financial behavior throughout each stage of their education (OECD, 2005).
Likewise, financial literacy is the capability of a person to handle his/her

assets, especially cash more efficiently while understanding how money works in the
real world.
Financial Plan
Teachers need to have a deeper understanding and capacity to formulate their

own financial plan. It is wise to consider starting to plan the moment they hand in
their first salary, including the incentives, bonuses and extra remunerations that
they receive.
Kagan (2019) defines a financial plan as a comprehensive statement of an

individual's long-term objectives for security and wellbeing and detailed savings and
investing strategy for achieving the objectives. It begins with a thorough evaluation of
the individual's current financial state and future expectations.
The following are steps in creating a financial plan.

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1. Calculating net worth. Net worth is the amount by which assets exceed
liabilities. In so doing, consider (1) assets that entail one's cash, property,
investments, savings, jeweliy and wealth; and (2) liabilities that include credit
card debt, loans and mortgage. Formula: total assets minus total liabilities =
current net worth.
2. Determining cash flow. A financial plan is knowing where money goes every
month. Documenting it will help to see how much is needed every month for
necessities, and the amount for savings and investment.
3. Considering the priorities. The core of a financial plan is the person's clearly
defined goals that may include: (1) Retirement strategy for accumulating
retirement income; (2) Comprehensive risk management plan including a
review of life and disability insurance, personal liability coverage, property and
casualty coverage, and catastrophic coverage; (3) Long-term investment plan
based on specific investment objectives and a personal risk tolerance profile;
and (4) Tax reduction strategy for minimizing taxes on personal income allowed
by the tax code. (httpsflwww.investopedia.com/terms/financial_plan.asp)
Five Financial Improvement Strategies
Financial literacy shapes the way people view and handle money. The following
are financial improvements suggested by Investopedia as a journey to financial
literacy.
1. Identify your starting point. Calculating the net worth is the best way fo
determine both current financial status and progress over time to avoid
financial trouble by spending too much on wants and nothing enough for the
needs.
2. Set your priorities. Making a list of rated needs and wants can help set
financial priorities. Needs are things one must have in order to survive (i.e.
food, shelter, clothing, healthcare and transportation); while wants are things
one would like to have but are not necessary for survival.
3. Document your spending. One of the best ways to figure out cash flow or
what comes in and what goes out is to create a budget and or a personal to
spending plan. A budget lists down all income and expenses to help meet
financial obligations.
4. Lay down your debt. Living with debt is costly not just because of interest and
fees, but it can also prevent people from getting ahead with their financial
goals.
5. Secure your financial future. Retirement goals.is an uncontrollable
stage in a worker's life, of which counterpart are losing the job, suffering
from an illness or injury, or be forced to care for a loved one that may lead
to an unplanned retirement. Therefore, knowing more about retirement
options is an essential part of securing financial future.
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Financial Goal Planning and Setting
Setting goals is a very important part of life, especially in financial planning.

Before investing the money, consider setting personal financial goals. Financial goals
are targets, usually driven by specific future financial needs, such as saving for a
comfortable retirement, sending children to college, or enabling a home purchase.
There are three key areas in setting investment goals for consideration.
1. Time horizon. It indicates the time when the money will be needed. To note,
the longer the time horizon, the more risky (and potentially more lucrative)
investments can be made.
2. Risk tolerance. Investors may let go of the possibility of a large gain if they
knew there was also a possibility of a large loss (they are called risk averse);
white other' are more willing to take the chance of a large loss if there were also
a possibility of a large gain (they are called risk seekers). The time horizon can
affect risk tolerance.
3. Liquidity needs. Liquidity refers to how quickly an investment can be

converted into cash (or the equivalent of cash). The liquidity needs usually
affect the type of chosen investment to meet the goals.
Investment goals: Growth, income and stability.
Once determined the financial goals and how time horizon, risk tolerance, and
'liquidity needs affect them, it is time to think about how investments may help
achieve those goals. When considering any investment, think about what it offers in
terms of three key investment goals: (1) Growth (also known as capital appreciation)
is an increase in the value of an investment; (2) Income, of which some investments
make periodic payments of interest or dividends that represent investment income
and can be spent or reinvested; and (3) Stability, or known as capital preservation or
protection of principal.
An investment that focuses on stability concentrates les on increasing the Value Of
investment and more to ensure that it never loses Value and can—we taken when
needed (https://www.flexscore.com/learningcenter/setting-financial-and investment-
goals).
Budget and Budgeting
A budget is an estimation of revenue and expenses over a specified future

period of time and is usually compiled and reevaluated on a periodic basis. Budgets
can be made for a variety of individual or business needs or just about anything else
that makes and spends money. Budgeting, on the other hand, is the process of
creating a plan to spend money. Creating this spending plan allows one to determine
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in advance whether he/she will have enough money to do the things he/she needs or
likes to do.
Thus, budgeting ensures to have enough money for the things needed and
those important ones and will keep one out of debt.
Seven Steps to Good Budgeting
The following are seven steps that may help in attaining good budgeting.
Step 1: Set realistic goals. Goals for the money will help make smart spending
choices upon deciding on what is important.
Step 2: Identify income and expenses. Upon knowing how much is earned each
month and where it all goes, start tracking the expenses by recording every single
cent.
Step 3: Separate needs from wants. Set clear priorities and the decisions become
easier to make by identifying wisely those that are really needed or just wanted.
Step 4: Design your budget: Make sure to avoid spending more than what is
earned. Balance budget to accommodate everything needed to be paid for.
Step 5: Put your plan into action. Match spending with income time. Decide ahead
of time what you will use each payday. Non-reliance to. credit for the living expenses
will protect one from debt.
Step 6: Plan for seasonal expenses. Set money aside to pay for unplanned expenses
so to avoid going into debt.
Step 7: Look ahead. Having a stable budget can take a month or two so, ask for help
if things are not getting well.
Spending
If budget goals serve as a financial wish list, a spending plan is a way to make
those wishes a reality. Turn them into an action plan. The following are practical
strategies in setting and prioritizing budget goals and spending plan:
1. Start by listing your goals. Setting budget goals require forecasting and
discussing future needs and dreams with the family.
2. Divide your goals according to how long it will take to meet each goal
Classify your budget goals into three categories: Short-term goals (less than a
year), medium-term goals (one to five years), and long-term goals (more than five
years). Short-term goals are usually the immediate needs and wants; medium. term
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goals are things that you and your family want to achieve during the next five years;
and long-term goals extend well into the future, such as planning for retirement.
3. Estimate the cost of each goal and find out how much it costs. Before
assigning priority to goals, it is important to determine the cost of each goal.
The greater the cost of a goal, the more alternative goals must be sacrificed in
order to achieve it.
4. Project future cost. For short-term goals, inflation is not a big factor, but for
medium and long-term goals, it is a big factor. To calculate the future cost of
the goals, there is a need to determine the rate of inflation applied to each
particular goal.
5. Calculate how much you need to set aside each period. Upon knowing the
future cost of the goals, next is to determine how much to put aside each period
to meet all the goals.
6. Prioritize your goals. Upon listing down all the goals and .the estimated
amount needed for each goal, prioritize them. This serves as guide in decision-
making.
7. Create' a schedule for meeting your goals. It is important to lay down all the
goals according to priority with the corresponding amount of money needed, the time
it will be needed, and the installments needed to meet the goals.
https://www.flexscore.com//earningcenter/the-spending-plan-setting-and-
prioritizing-your-budget- goals)
Investment and Investing
As teachers, when you have saved more money than what you expect at a time
of need, consider investing this money to earn more interest than what your savings
account is paying you. There are many ways you can invest your money but consider
four aspects:
1. How long will you invest the money? (Time Horizon)

2. How much money do you expect your investment to earn each year?
(Expectation of Return)
3. How much of your investment are you willing to lose in the short-term in order
to earn more in the long-term? (Risk Tolerance)
4. What types of investment interest you? (Investment Type)
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Savings
In order to get out of debt, it is important to set some money aside and put it into a
savings account on a regular basis. Savings will also help in buying things that are
needed or wanted without borrowing.
Emergency Savings Fund. Start as early, setting aside a little money for emergency
savings fund. If you receive a bonus from work, an income tax refund or earnings
from additional or side jobs, use them as an emergency fund.
Reasons Why Save Money
With credit so easy to get, here are ten practical reasons why it is important to
save money that everyone, including teachers, must know.
1. To become financially independent. Financial independence is not having to

depend on receiving a certain pay but setting aside an amount to have savings that
can be relied on.
2. To save on everything you buy. With savings, you can buy things when they are
on sale and can make better spending choices without being compromised on credit
card interest charges.
3. To buy a home or a car. Savings can be used in buying a home in full or down
payment, especially in times of promo deals, bids and inevitable sale and at, a
reasonable interest rate.
4. To prepare for the future. Through savings, you can be confident to face the
future without worrying on how you will survive.
5. To get out of debt. If you want to get out of debt, you have to save money.
6. To augment annual expenses. In order to attain a good, stress-free financial life,

there is a need to save for annual expenses in advance.
7. To settle unforeseen expenses. Savings can respond to unforeseen expenses in

times of need.
8. To respond to emergencies. Emergencies may happen anytime and these can be

expensive so, there is a need to get prepared rather than potentially become another
victim of an emergency.
9. To mitigate losing your job or getting hurt. Bad things can happen to anyone,
such as losing a job, business bankruptcy or crisis, being injured or becoming too
sick to work. Therefore, having savings is the key to resolve such a dilemma.
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10. To have a good life. Putting aside some money to spend when needed can bring
about quality and worry-free life at all times.
Common Financial Scams to Avoid
Financial fraud can happen to anyone, including the teachers at anytime. While
some forms of financial fraud such as massive data breaches, are out of one’s
control. There are many ways to proactively get rid of financial scams and identity
theft.
Here are some of the most common financial scams, along with ways to identify
them. early and how to protect one's self from being victimized.
1. Phishing. Using this common tactic, scammers send an email that appears to
come from a financial institution, such as a bank and asks you to click on a
link to update your account information. If you receive any correspondence
that asks for your information, never click on the links or provide account
details. Instead, visit the company's website, find official contact information,
and call them to verify the request.
2. Social Media Scams. Scammers are adept at using social media to gather
information about the traveling habits of potential victims. They also have
phishing tactics, including posts seeking charity donations with bogus links
that allow them to keep your money. Therefore, be conscious of the information
you post online, especially personal details and plans for a vacation that you
would leave your house unoccupied.
3. Phone Scams. Another prevalent tactic is scamming phone calls. The

scammers pose as a government agency, such as the Bureau of Internal
Revenue or local law enforcement agencies, and use scare tactics to acquire
your personal information and account numbers. Never provide your account
information over the phone. Look for the agency's contact information, and call
them to verify any request. To note, government agencies will never text or call
you to ask for money.
4. Stolen Credit Card Numbers. There are numerous ways that scammers can
obtain your credit card information, including hacking, phishing, and the use
of skimming devices, such as small card readers attached to unmanned credit
card readers (i.e. ATMs, gas pumps, and more). These small devices pull data
from your card when you swipe it. Before you use an ATM or swipe your card,
look for suspicious devices that may be attached to the card reader.
5. Identity Theft. Depending on the amount of information a scammer is able to

obtain, identity theft may extend beyond unauthorized charges on a debit or
credit card. If scammers are able to obtain your Social Security number, date
of birth' and other personal information, they may be able to open new
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accounts in your name without your knowledge. Be aware Of an information

you share and with whom, and always shred sensitive information before
disposing it.
By taking Preventative measures and being aware of scams, can minimize the
risks of fraud. Monitoring your online or mobile banking accounts daily can also help
you see fraudulent charges quickly.
(h ttps://www.regions.com/lnsights/Personal/Financial -Hardship/
Disaster-recovery/common-financial-scams-to-avoid)
10 Tips to Avoid Common Financial Scams
Every year, fraud cases are getting worse, leaving countless victims in trouble
and danger through data breaches, identity theft and online scams. Unfortunately,
new and improved technology only gives fraudsters an edge, making it easier than
ever for scam artists to nab financial data from unsuspecting consumers (Bell, 2019).
1. Never wire money to a stranger. Although it is one of the oldest Internet

scams, there are still consumers who fall for this rip-off or some variations of
it.
2. Don't give out financial information. Never reveal sensitive personal financial
information to a person or business you don't know, thru phone, text or email.
3. Never click on hyperlinks in emails. If you receive an email from a stranger

or company asking you to click on a hyperlink or open an attachment and
then, enter your financial information, delete the email immediately.
4. Use difficult passwords. Hackers can easily find passwords that are simple
number combinations. Create passwords that are at least eight characters long
and that include some lower and upper case letters, numbers and special
characters. You should also use a different password for every website you
visit.
5. Never give your social security number. If you receive an email or visit a
website that asks for your Social Security number, ignore it.
6. Install Antivirus and Spyware protection. Protect the sensitive information

'stored on your computer by installing antivirus, firewall and spyware
protection. Once you install the program, turn on the auto-updating feature to
make sure the software is always up-to-date.
7. Don't shop with unfamiliar online retailers. When it comes to online

shopping, only do business with familiar companies. When purchasing a
product from an unfamiliar retailer, do some research to ensure the business is
legit and reputable.
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8. Don't download software from pop-up windows. When you are online, do not
trust pop-up windows that appear and claim your computer is unsafe. If you
click on the link in the pop-up to start the "system scan" or some other
programs, malicious software known as "malware" could damage your
operating system.
9. Make sure the websites you visit are safe. Before you enter your financial
information on any website, double-check the website's privacy rules. Also,
make sure the website uses encryption, which is usually symbolized by a lock
to the left the web address which means it is safe and protected against
10. Donate to known charities only. If you receive a call or an email for
solicitation of charity donations, critically examine it. Some scammers create
bogus charities to steal credit card
(https://www.investopedia.com/adic/es/personal-finance/041515/10-tips-
avoid.common-)
Financial Scams among Students. Students can also be susceptible to different

financial scams and fraud. Learning how to manage finances and being aware of
financial scams are skills that every student should master.
The following are common financial scams that students should watch out for, and
learn to protect one's identity and finances.
A. Fake scholarships. While it is beneficial for students to apply for as many

scholarships, it is important to become aware of related scams and frauds.
Students Should thoroughly check scholarship sources before applying to
verify legitimacy. Never apply for a scholarship that asks for money in return.
B. Diploma mills. There are schools that offer fake degrees and diplomas in
exchange for a fee. Check from government education agencies the prospective
school to enroll in if it is government-recognized, legitimate or accredited.
C. Online book scams. While students often go for the best deals on textbooks
online, scammers can use this opportunity to get students' credit card
information. When buying anything online, be sure to do it on a credible site.
D. Credit card scams. Oftentimes, credit card companies go to school campuses

to convince students to fill out card applications. Scammers may also grab this
chance to steal students' information. It is important to visit a local credit
union or bank for credit card application. Also, regularly check the credit card
statement and once there are any unrecognized charges, contact your banking
institution immediately. (https://www.adt.com/resources/financial-scam-
safety)
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10 | P a g e 21 Century Education
Insurance and Taxes
Insurance is a contract (in the form of a policy) between the policyholder and the
insurance company, whereby the company agrees to compensate for any financial
loss from specific insured events. In exchange for the financial protection offered,
policyholder agrees to pay a certain sum of money, known as premiums to the
insurance company. Insurance is the best form of risk management against
uncertain loss.
There are various types of insurance to choose from, such as life insurance,
health insurance, motor insurance, property insurance, business insurance, etc.
Besides, the financial protection derived from insurance entails tax benefit claim on
the paid premiums.
The following are concepts related to insurance and taxes that every teacher
should know. However, he/she should carefully analyze and critically examine well
before pursuing any deal with them.
1. Employer-Sponsored Insurance. If working in a company with 50 or more

full-time employees, the employer is required to provide employee-only
insurance that meets minimum guidelines. Examine the plan offered, but do
not pay over 9.66 percent of household income in premiums.
2. Marketplace Plans. Marketplace plans are available based on an area Of

residence and income upon meeting minimum coverage requirements.
Marketplace plans come in three tiers: bronze, silver and gold. Generally,
bronze plans offer the least coverage at the lowest premiums, while gold plans
provide the most coverage at the highest price.
Life insurance. Life insurance is a type of insurance that compensates

beneficiaries upon the death of the policyholder. The company will guarantee a
payout for the beneficiaries in exchange of premiums. This compensation is called
"death benefit."
Depending on the type of insurance one may have, these events can be
anything from retirement, to major injuries, to critical illness or even to death.
The following are common risk categories:
1. Preferred Plus —The policyholder is in excellent health, with normal weight,

no history of smoking, chronic illnesses, or family history of any life-
threatening disease.
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2. Preferred — The policyholder is in excellent health but may have minor issues
on cholesterol or blood pressure but under control.
3. Standard Plus — The policyholder is in very good health but some factors, like
high blood pressure or being overweight impede a better rating.
4. Standard— Most policyholders belong to this category, as they are deemed to

be healthy and have a normal life expectancy although, they may have a family
history of life-threatening diseases or few minor health issues
5. Substandard --- Those with serious health issues, like diabetes or heart
disease are placed on a table rating system, ranked from highest to lowest. On
average, the premiums will be similar to Standard with an additional 25%
lower claim on table ratings.
6. Smokers — Due to an added risk of smoking, the policyholders in this

category are guaranteed to pay more. Aside from health class age is also a critical
factor in determining premiums. Therefore, older people pay more expensive
premiums.
Benefits of Life Insurance
The following are the benefits of life insurance.
1. It pays for medical and funeral costs. Life insurance helps solve the
incurred expenses for medical and funeral services to lessen the grief among
family and relatives for being unprepared.
2. For financial support. Life insurance can become a source of temporary
income during the difficult period of adjusting and coping with the loss of a
loved one, especially if he/she is the breadwinner.
3. For funding various financial goals. Life insurance offers additional benefits
through the form of fund accumulation for specific future financial goals.
4. Acts as a retirement secured conform. Modern life insurance also serves as
a tool that principal holders can use to get in a better financial position in the
future.
5. It covers costs incurred from taxes and debt. Life insurance can serve as
protection since (he premium can be used to pay for unsettled debts and taxes.
Types of Life Insurance

The table below shows a comparative analysis of different types of life
insurance along characteristics, advantages and disadvantages that may serve as a
reference.
Type Characteristics Advantages Disadvantages

1. Endowment It grants a lump sum after It allows for saving It requires
It allows for saving up for a up for specific higher
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specified amount of specific purposes. premiums than

purposes. time or upon other types of
death. The It guarantees It guarantees life insurance.
returns policy owner is returns upon
required upon maturity. to maturity. It is not the
pay the premium for a best option for
predetermined number of It It offers some form those looking at
offers some form of years or of insurance full life
until a specific insurance coverage. protection
coverage. age is reached.
2. Term It is the simplest form of It entails low It has no

life insurance to obtain, of premium benefit if
which upon death, the requirements. policyholder
beneficiaries are paid It is a strong option outlives the
policyholders who need with for policyholders term period set.
the benefit. who need insurance
but cannot afford Premium
whole life or usually gets
endowment higher upon
It is easy to renewal of
understand. terms.
3. Whole Life It provides coverage for the
policyholder’s entire life
until they reach 100 years
old. It acts both as
protection and savings
mechanisms since portion
of the premium is allocated
to build up cash values.
4. Variable
Universal
Life (VUL)
Financial Stability
Like anyone else, teachers also aim to become financially stable if not today,
maybe in the future. Being financially stable means confidence with the financial
situation, worriless paying the bills because of available funds, debt-free, money
savings for future goals and enough emergency funds.
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Financial stability is not about being rich but rather more of a mindset. It is
living a life without worrying about how to pay the next bill, and becoming stress-free
about money while focusing energy on other parts of life (Silva, 2019).
10 Strategies in Reaching Financial Stability
Just like any goal, getting the finances stable and becoming financially
successful requires the development of good financial habits. Babauta (2007)
suggests 10 habits toward financial stability and success.
1. Make savings automagical. Savings should be made a top priority, especially

as an emergency fund and a bill payment from the amount are automatically
transferred from the checking account, like an online savings account.
2. Control your impulsive spending. Control yourself from impulsive spending

on eating out, shopping and online purchases that may ruin your finances and
budget.
3. Evaluate your expenses and live frugally. Analyze how you spend your
money, see what you can reduce and determine expenses that are necessary
and eliminate the unnecessary.
4. Invest in your future. start preparing and investing for your future retirement
while still young in your career field.
5. Keep your family secure. save for an emergency fund, so that you have
something to spend if anything happens with the family
6. Eliminate and avoid debt. Eliminate credit cards, personal loans, or other
debt forms as it will not work on you but even pull you down and make you
drowned with obligations that may even resort to surrendering your properties,
jewelry and investments as payment.
7. Use the envelope system. Set aside three amounts in your budget each
payday, withdraw those amounts and put them in three separate envelopes. In
that way, you can easily track how much remains for each of the expenses or if
you already run out of money.
8. Pay bills immediately. One good habit is to pay bills as soon as they come
in and try to get your bills to be paid through automatic deduction.
9. Read about personal finances. The more you educate yourself, the better your
finances will be.
10. Look to grow your net worth. Do whatever you can to improve your net
worth, either by reducing your debt, increasing your savings, or increasing
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your income, or all of the above. (https:// zenhabits.net/10-habits-to-develop-

for-financia10
Signs of Being Financially Stable
Teachers, like anyone else, often work to the extent to earn more even through
additional jobs on the side just for their desire for financial stability.
Rose (2019) presents some signs of a financially stable person.
1. You never overdraw your checking account.

2. You don't lose sleep over finances.
3. You use credit cards for convenience and rewards but never out of necessity.
4. You don't worry about losing your job.
5. You pay your bills ahead of time.
6. People ask your opinion about financial matters and you inspire them.
7. You're generally happy with your financial situation.
8. You finance your cars over five years or less if you take loans at all.
9. You contribute more to your retirement.
10. You don't feel guilty when you're out for special occasions.
11. You can afford to buy the things you really want.
12. Recreational spending doesn't appeal to you,
13. You're a natural saver.
14. You're generous with money when it comes to charities or helping
others.
15. You're confident about your future.
16. Your net worth grows significantly from year to year.
17. You have substantial equity in your home.
18. You consistently live beneath your means.
19. You could survive for months without a paycheck.
20. You feel in control of your finances and never dominated by them.
(https://www.goodfinancialcents.com/financia//y-stab/e/)
Integrating Financial Literacy into the Curriculum
Financial education in schools should be part of a collaborative national

strategy to ensure relevance and long-term sustainability. The education system and
profession should be involved in the development of the strategy.
In support, Barry (2013) underscored that financial literacy has a wide

repercussion outside the family circle and more precisely, the school. Hence,
administrators and professors need to develop a curriculum that would provide
students insights on having the value of financial literacy including the effect it can
bring them.
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Moreover, there should be a learning framework, which sets out goals, learning
outcomes, content, pedagogical approaches, resources and evaluation plans. The
content should cover knowledge, skills, attitudes and values. A sustainable source of
funding should be identified at the outset.
Financial education should ideally be a core part of the school curricuIum. It

can be integrated into other subjects like mathematics, economics, social studies,
technology and home economics, values education and others. Financial education
can give a range of 'real-life' contexts across a range of subjects.
Teachers should be adequately trained and resourced, made aware Of the

importance of financial literacy and relevant pedagogical methods and they should
receive continuous support to teach it or integrate in their lesson. More so, there
should be easily accessible, objective, high quality and effective learning tools and
pedagogical resources available to Schools and teachers that are appropriate to the
level of study. Students' Progress should also be assessed through various high
impact modes.
V. SUMMARY
 Financial literacy is the ability to make informed judgments and make
effective decisions regarding the use and management of money.
 A financial plan is a comprehensive statement of an individual's long-term

Objectives for security and well-being that details savings and investing
strategy for achieving those objectives based on an individual's current
financial state and future expectations.
 A budget is an estimation of revenues and expenses over a specified future

period of time and is usually compiled and re-evaluated on a periodic basis
while budgeting is the process of creating a plan to spend money.
 The saved money will earn more, if it is invested upon understanding the
essential factors, such as time horizon, an expectation of return, risk
tolerance, and investment type.
 It is equally important to have savings on a regular basis in order to get out

of debt or buy things we want, and most of all, to keep an emergency fund
in times of need.
 Financial fraud may happen to anyone at any time, such as massive data
breaches, however, there are many ways to get rid of financial scams like
s t
phishing, social media and phone scams, stolen credit card numbers, arid
identity theft.
 Insurance, regardless of type, is a contract between the policyholder and the

insurance company, whereby the company agrees to compensate for any
financial loss arising from specific insured events.
 Being financially stable means confidence with the financial situation,

worry-free paying of bills because of available funds, debt-free, money
savings for future goals and enough emergency funds.
 Financial literacy should be made part of the curriculum that should begin
at the early age using a coordinated national strategy.
VI. EVALUATION
Direction: Read and analyze each item carefully. Choose the letter of the best
answer.
1. Surveys reveal that some teachers face their retirement without savings at
hand which usually bring them to worse poverty scenario What are the reasons
behind this?
I. Culture of extended family dependency

II. Lack of priority on retirement preparation during earning career
III. Strong passion and value for the teaching profession
IV. Lack of value on their career effort and remunerations
A. I and Il only C. Il and IV only

B. Il and Ill only D. I, II, Ill and IV
2. Who among the following would be mostly target victims of financial

scammers?
a. The rich and powerful
b. The generous and kind
c. The passive and submissive
d. The financially illiterate
3. Which of the following strategies can teachers LEAST consider in preparing for
their retirement?
a. Continuing professional development towards promotion and increment
b. Sustain expenses relatively lower than salaries
c. Avail of life and retirement insurance
s t
d. Frequent trips with grabbed promo fares and freebies
4. According to previous researches, teachers go into unreasonable debts and

loans which eventually lead them to payables and unnecessarily leading them
to surrender their ATM cards. Which financial factor is considered the least to
affect this practice and its results?
A. Savings C. Compensation and fringe benefits
B. Expenses D. Emergency funds
5. Why are people victimized by financial scams that end up to the loss of
properties, investments and savings, and even to ruining their lives?
A. They have not learned in school how to avoid being scammed
B. They desire for easy and quick money.
C. It is already their destiny that may happen anytime as sketched in the palm of
their lives.
D. It is always part of life and it is just that they are not wise enough to cope with
it.
Direction: Analyze the following research abstract and cite its Impli on teaching-
learning. You may download the full paper of this research on the website given
below.
Financial literacy and financial planning among teachers of higher education: A

study on critical factors of select variables
Surendar and Subramanya Sarma (2018)
Abstract
Teachers are the most influential people in our society. Apart from academics, they
have the ability to positively affect many aspects ff people's lives. By having financial
literacy and managing personal finance properly, they can become role models to the
students and help to develop fiscally and socially responsible citizens. An individual
with good financial sense may plan better his/her personal finance' particularly
teachers who are key contributors to the development of society. In background, this
study has been conducted to know the critical factors using factors analysis in
enhancing the financial literacy levels and study their impact on select variables of
financial planning among teachers of higher education. The study found that the
level of financial literacy among higher education teachers is satisfactory. It
demonstrates the importance of contextual variables that may influence financial
literacy and personal financial planning. It explored the relationships among the
select variables of financial literacy and personal financial planning using a
methodology that is free from the influence of the attribute of the respondents. The
study found that the majority of higher education teachers have a high level of
s t
financial literacy, are aware of various aspects of personal financial planning and are
able to plan on their own irrespective of their subject. It also revealed that retirement
planning, tax planning and control, financial planning, financial capacity and
inflation are critical factors in personal financial planning among them.
(Source: Surendar, G. & Sama, S. (2018). Financial literacy and financial planning
among teachers of of Pure higher and education: Applied Mathematics A study of
critical vol. 118 factors No. 18 of 2018, select 1627-1649 variables. International
SSN: 13118080. url: http://www.ijpam.eu Special Issue)
1. What are the critical factors in personal financial planning among higher
education teachers?
2. What is the impact of each of the factors on financial literacy and planning
among teachers?
VII.REFERENCE
De Leon, Elmer B.,Building and Enhancing New Literacies Across the

Curriculum: LORIMAR Publishing Inc, 2019
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Prof Ed 10. Financial Literacy

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SHEPHERDVILLE COLLEGE

(FORMERLY JESUS THE LOVING SHEPHERD CHRISTIAN COLLEGE)

Prof Ed 10. BUILDING AND ENHANCING NEW LITERACIES AROSS THE

Topic/Concept: FINANCIAL LITERACY

II. OBJECTIVES/ LEARNING OUTCOMES

III. DEFINITION OF TERMS

 Financial Literacy. The ability to make informed judgments and make

 Saving. Saving is putting money aside. It involves reducing expenditures,

 Budgeting. Budgeting is a process of creating a plan to spend your money.

Poor financial decisions can have a long-lasting impact on individuals, their

The importance of starting financial literacy while still young.

Likewise, financial literacy is the capability of a person to handle his/her

Teachers need to have a deeper understanding and capacity to formulate their

Kagan (2019) defines a financial plan as a comprehensive statement of an

The following are steps in creating a financial plan.

Five Financial Improvement Strategies

Financial Goal Planning and Setting

Setting goals is a very important part of life, especially in financial planning.

3. Liquidity needs. Liquidity refers to how quickly an investment can be

Investment goals: Growth, income and stability.

Budget and Budgeting

A budget is an estimation of revenue and expenses over a specified future

Seven Steps to Good Budgeting

Investment and Investing

1. How long will you invest the money? (Time Horizon)

Reasons Why Save Money

1. To become financially independent. Financial independence is not having to

6. To augment annual expenses. In order to attain a good, stress-free financial life,

7. To settle unforeseen expenses. Savings can respond to unforeseen expenses in

8. To respond to emergencies. Emergencies may happen anytime and these can be

Common Financial Scams to Avoid

3. Phone Scams. Another prevalent tactic is scamming phone calls. The

5. Identity Theft. Depending on the amount of information a scammer is able to

accounts in your name without your knowledge. Be aware Of an information

10 Tips to Avoid Common Financial Scams

1. Never wire money to a stranger. Although it is one of the oldest Internet

3. Never click on hyperlinks in emails. If you receive an email from a stranger

6. Install Antivirus and Spyware protection. Protect the sensitive information

7. Don't shop with unfamiliar online retailers. When it comes to online

Financial Scams among Students. Students can also be susceptible to different

A. Fake scholarships. While it is beneficial for students to apply for as many

D. Credit card scams. Oftentimes, credit card companies go to school campuses

Insurance and Taxes

1. Employer-Sponsored Insurance. If working in a company with 50 or more

2. Marketplace Plans. Marketplace plans are available based on an area Of

Life insurance. Life insurance is a type of insurance that compensates

The following are common risk categories:

1. Preferred Plus —The policyholder is in excellent health, with normal weight,

4. Standard— Most policyholders belong to this category, as they are deemed to

6. Smokers — Due to an added risk of smoking, the policyholders in this

Benefits of Life Insurance

The following are the benefits of life insurance.

Types of Life Insurance

Type Characteristics Advantages Disadvantages

specified amount of specific purposes. premiums than

2. Term It is the simplest form of It entails low It has no

10 Strategies in Reaching Financial Stability

1. Make savings automagical. Savings should be made a top priority, especially

2. Control your impulsive spending. Control yourself from impulsive spending

your income, or all of the above. (https:// zenhabits.net/10-habits-to-develop-

Signs of Being Financially Stable

Rose (2019) presents some signs of a financially stable person.

1. You never overdraw your checking account.