PERSONAL

FINANCE
Objectives:
• Define personal finance
• Explain the personal
finance process
• Discuss personal savings,
spending, and investing
principles
What percentage of an
employee’s salary do you think
should be saved every month?
Concept of Personal Finance

It refers to the management of a

person's financial activities, which
involve, among other things, the
following:
• proper allocation of personal
resources
• budgeting of household expenditures
• savings and insurance for retirement
• personal investing and financing
activities
Personal Finance

The goal of personal

finance is for the individual
to have a good life.
 What Is the State of Financial
Literacy in the Philippines Today?

• Only 25 percent of adult Filipinos are

literate on the basics of finance.
• financial literacy improves from general
proficiency in mathematics.

• a dismal 40% of adult Filipinos save

• Of those who save, 68% keep their saved
money at home,
• 33% keep their money in formal financial
institutions,
• 7.5% save through cooperatives, and
• 2.6% keep their money in group savings,
or paluwagan.

Source:
https://businessmirror.com.ph/2022/09/12/financial-literacy-philippines/#:~:text=Only%2025
%20percent%20of%20adult,diversification%2C%20inflation%20and%20compound%20interest
 B. Personal Finance
Process
01 conducting personal
financial assessment
02 setting goals and
objectives
03 preparing a financial
People that are
plan or budgets financially successful
04 executing financial have one thing in
activities common: they manage
05 Monitoring an their funds well through
evaluation effective planning.

Refer to pages 308 to 313 in your textbook

C. Major Personal Financial Activities

SAVINGS INVESTING
Saving money for the future is
• Invest in legal investment
essential for anyone who
activity.
wants to avoid financial
• Don't put all of your money
difficulties.
into one investment.
expenses = income - savings

SPENDING
Spend only what you can
afford.
Group Activity:
Submit a month of Personal Balance Sheet
and a Personal Income Statement.
● Conduct a personal financial assessment
on one of your groupmates (refer to
pages 308-311)
● Consider your allowance as your income,
feel free to add any that you really receive
on a monthly basis
● You may ask your parents/guardians of
your basic consumptions/living expenses
● Submit on or before March 25, 7:30AM
Liceria & Co.

Thank
You