UNIVERSIDAD DE MANILA

COLLEGE OF EDUCATION

BENEFITS OF FINANCIAL
 
Topic :
LITERARY.

Reporter:
Diana Jane L. Gudes

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FUNDAMENTAL COMPONENTS OF
FINANCIAL LITERACY

Budgeting: Creating the right balance throughout the

primary uses of money allows individuals to better allocate
their income, resulting in financial security and prosperity.

Investing: To become financially literate, an individual must

learn about key components in regards to investing. 

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FUNDAMENTAL COMPONENTS OF
FINANCIAL LITERACY

Borrowing: To ensure borrowing is done effectively, an

understanding of interest rates, compound interest, 
time value of money, payment periods, and loan structure is crucial.

Personal Financial Management: Financial security is ensured by

balancing the mix of financial components above to solidify and
increase investments and savings while reducing borrowing and debt.

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 COLLEGE OF EDUCATION
BENEFITS OF FINANCIAL LITERACY
 Ability to make better financial decisions
 Effective management of money and debt
 Greater equipped to reach financial goals
 Reduction of expenses through better regulation
 Less financial stress and anxiety
 Increase in ethical decision-making when selecting insurance, loans,
investments, and using a credit card
 Effective creation of a structured budget

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WHAT IS FINANCIAL STABILITY?

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) 

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STEPS TO CREATE FINANCIAL STABILITY

1. SET FINANCIAL GOALS

2. CREATE A BUDGET
3. PAY YOURSELF FIRST
4. GROW YOUR EMERGENCY FUND
5. INVEST EARLY AND OFTEN
6. ELIMINATE DEBT

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CONCLUSION:

Financial literacy is important because it helps people

become self-sufficient and achieve financial stability. It also
empowers people. Financial Literacy is an important
component of life that can ensure financial solidity, reduce
anxiety, and stimulate the achievement of financial goals.

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