1

WELCOME
FINANCIAL
LITERACY 101
Group 4
 1
Introduction What is Financial Literacy

The national Endowment for

Financial Education defines
financial literacy as “the
ability to read. Analyze,
manage, and communicate
about the personal financial
conditions that affect
material well being.
 Ability to discern financial
choices It includes 3

Discuss money and financial

issues with/without discomfort

Plan for the future

Respond competently to life that affect

everyday financial decisions

Knowledge about the general

economy of the country

In charge Education Foundations, 2017

 Hastings, et al. (2013) also includes 4

Knowledge of financial Knowledge of financial Having mathematical skills or

products concepts effective financial decisions
 5

“THE ABILITY TO USE KNOWLEDGE

AND SKILLS TO MANAGE ONE’S
FINANCIAL RESOURCES
EFFECTIVELY FOR A LIFETIME
FINANCIAL SECURITY
- Mandell, 2009
REPUBLIC ACT 10922,
OTHERWISE KNOWN AS THE 6

“ECONOMIC AND FINANCIAL

LITERACY ACT”
“THIS IS TO ENSURE THAT ECONOMIC AND
FINANCIAL EDUCATION BECOMES
INTEGRAL PART OF FORMAL LEARNING”
 The six Key Concepts for financial literacy 7

The council for Economic Education, the leading

organization in the United States that focus on the
economic and financial education of students from
Kindergarten through high school developed six
standard gearing toward deepening students’
understanding of personal finance through an
economic perspective.
 1
Key Concept
Earning
Income Earns income or received by
people.

Government programs and

laws that affect income.

Types of income and taxes.

 1
Key Concept
Earning
Income Different types of jobs as
well as different forms of
income earned or received

Benefits and costs of

increasing income trough
the acquisitions of
education and skills.
 2
Key Concept
Buying goods Scarcity, choice, and
and services opportunity cost.

Comparing the cost and

benefits.

Basic budgeting and

planning.
 2
Key Concept
Buying goods Factors that influence spending
and services choices, such as advertising,
peer pressure, and spending
choices of others.

The role of government and

other institutions in providing
information for consumers.

Payment methods, cost, and

benefits
 3
Key Concept

Concept of saving and interest

Saving
Present vs future values

Financial regulators

Automatic saving plans, “rainy-

day” funds

Retirement savings
 3
Key Concept

The role government agencies

Saving such as the Federal Deposit
Insurance Corporation (FDIC)
play protecting savings deposits

Power of compound interest

The role that financial

institutions play as
intermediaries between savers
and borrowers
 3
Key Concept

Saving How people save money,

where people can save
money, and why people save
money.

Factors determining the

value of a person’s savings
over time.
 4
Key Concept

Using Credit Concept of credit and cost

of using credit.

Why people use credit.

Why interest rate vary

across borrowers.

Consumer protection laws

 4
Key Concept

Using Credit Basic calculations related

to borrowing (principal,
interest, compound interest)

Credit reports and credit

scores.

Behaviors that contributes

to strong credit reports and
scores
 5
Key Concept
Financial Concept of financial
investing investment

Variety of possible financial

investments

Calculate rates of return

 5
Key Concept
Financial Relevance and calculation
investing of real and after-tax rates of
return

How markets cause rates of

return to change in response
to variation in risk and
maturity
 5
Key Concept
Financial How diversification can
investing reduce risk

How financial markets react

to changes in market
conditions and information.
 6
Key Concept
Protecting and Concept of financial risk and
insuring loss

Insurance (transfer of risk

through risk pooling)

Managing risk

Identity thefts
 6
Key Concept
Protecting and
insuring Life insurance
products

How to protect
oneself against
identity theft.
 Why
Filipinos
have no
progress,
even though
they have
work?
 Why manage? 23

1 2 3

Door closed Windows covered, Students may only move

and locked closed, and locked around the building
escorted by an adult
It includes 24
It includes 25
BATHROOM
BREAKS 1 Do not say the b-word

2 Sign out (3 sign outs per

marking period)

3 Use the pass

4 Bring it back
1 Push chairs in

2 Lights out
FIRE DRILL
3 Single file, silent line

4 Proceed toward the woods

5 Pass the playground on the right

6 Count off
LOCK DOWN 28

1 Lights out
2 Door locked
3 Hide under the tables
4 Chair pulled toward you
5 No talking
 WEATHER EMERGENCY 29

1 2

Know the safety Move quickly and

zone quietly to the
safety zone
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