Module 8:

FINANCIAL LITERACY LEARNING OUTCOMES

1. Define 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 on 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 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

INTERACTIVE PRESENTATION

Deal or No Deal. This is an interactive activity adapted from a TV game show segment which entails a
student to pick any of the briefcases containing an amount and he/she then, takes deal or no deal with
the banker's offer against the amount in the last briefcase.

Procedure:

1. The teacher will choose 10 students who will prepare different amounts written in 10 folders that will
serve as briefcases.

2. During the game, the class will choose a player.

3. While playing the "Deal or No Deal" with background music downloaded from the Internet, the player
will choose the briefcase to be opened to see the amount.

4. The selection of briefcases to be opened shall continue until only the last three remain.

5. Then, the teacher will say, "The banker has an offer".

6. There will be bidding of amount offered by the banker in lieu of opening the remaining briefcases by
the player.

7. The last briefcase will be opened and find out if the banker's offer is higher than the amount in the
chosen last briefcase.

8. There shall be a reflection in the class by asking "What will you do if banker will offer an amount of
money". The teacher will generate answers from the students.
CONCEPT EXPLORATION

In some instances, teachers are confronted with issues and concerns on financial debt, being
victimized by fraud and other related scams, both personal and electronic ways. More so, some teachers
are drowned by emergent financial needs and unexpected debt, especially in difficult times, sickness and
inevitable circumstances and calamities. Others do not prepare for their retirement that they usually
end up highly frustrated. This is the reason why financial literacy has been a subject in many faculty
development programs, seminars, and even becomes a topic for researches, while many schools have
integrated it in the curriculum.

Financial 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 well-being 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.

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, jewelry 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.
([Link]

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 to 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 or a personal 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 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 loved one that
may lead to an unplanned retirement. Therefore, knowing more about retirement options is an essential
part of securing financial future.

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.
A. 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.

B. 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); while others 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.

C. 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.

D. 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 less on increasing the value of investment
and more on trying to ensure that it never loses value and can be taken when

needed ([Link] 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 re- evaluated 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 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 requires forecasting and discussing future needs and
dreams with the family.

[Link] 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 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. 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. ([Link]
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)

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. It you
receive a bonus from work, an income tax refund or earnings from additional or side jobs, use them as
an emergency fund.

10 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

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.

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 any time. 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.

A. 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.

B. 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.

C. 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.

D. 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.

E. 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
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, you can minimize the risks of fraud.
Monitoring your online or mobile banking accounts daily can also help you see fraudulent charges
quickly. ([Link] 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.
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
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 of 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
information. ([Link]
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. ([Link]

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

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 the 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.

TYPES CHARACTERISTIC ADVANTAGE DISADVANTAGE

Endowment it grants a lump sum It allows for saving up It requires higher

after a specified for premiums than
amount of time or upon specific purposes. other types of life
death. The policy owner It guarantees returns insurance.
is required to pay the upon maturity.
premium for a It offers some form of It is not the best
predetermined number insurance coverage. option for those
of years or until a looking at full life
specific age is reached. protection.
Term It is the simplest form It entails low premium It has no benefit
of requirements. if policyholder
life insurance to obtain, It is a strong option for outlives the term
of which upon death, policyholders who need period set.
the insurance but cannot
beneficiaries are paid afford whole life or Premium usually
with the benefit. endowment. gets higher upon
renewal of terms.
It is easy to understand.
Whole life It provides coverage for It is flexible in terms of It requires higher
the policyholder's payments of premiums. premiums.
entire It entails fixed
life or until they reach premiums. It is difficult to
100 years old. It acts understand due to
both as protection and It usually comes with complexity
savings mechanisms additional features and
since a portion of the "living" benefits.
premium is allocated to
build up cash values.
Variable Universal Life It serves as both It takes dual purpose: Cash values and
(VUL). life protection and Life dividends are not
investment vehicle in insurance plus guaranteed.
one investment Face amount
package. A portion of tool. and death benefit
the premium is It has no maturity age. are dependent
allocated The cash value is on investment
into various investment payable performance.
vehicles for the along with the assured It includes various
 purposes sum. investment fees.
of wealth creation. The The death component
contract's earnings is
are based on the not limited to face
performance of value
selected It depicts liquidity,
investments. wherein
funds can be accessed
in times of need and
can serve as emergency
funds.

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.

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 emergently.

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 your income, or all of the above. (https://
[Link]/10-habits-to-develop-for-financial/)

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.
([Link]

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.

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 curriculum. 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.

QUESTIONS FOR DISCUSSION

1. What is financial literacy? Explain.

2. Differentiate budgeting, saving, spending and investing.
3. What are ways of avoiding financial scams?
4. How do you understand insurance and what type do you want to avail of?
5. When can we say that a person is financially stable?
6. How will you integrate financial literacy in the curriculum for related disciplines?

RESEARCH ANALYSIS AND IMPLICATION

Direction: Analyze the following research abstract and cite its implication 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 of 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 this
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 also 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 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.

Analysis: 1. What are the critical factors in personal financial planning among higher education
teachers?

Implication: 2. What is the impact of each of the factors on financial literacy and planning among
teachers?

FINANCIAL LITERACY

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.
SYNTHESI
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 phishing, social media and phone scams, stolen credit card
numbers, and 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.

Directions: Fill-in the following coins with concepts on financial literacy related to budgeting, spending,
investing and saving. Then, cite the reasons why we need to have them and also ways in applying or
practicing them. You may write explanations on the spaces below the coins inside the box.

Spending Saving
Budgeting Investing
Why: Why:
Why:
LEARNING
Why:
REFLECTION How:
How:
How: How:

Explanation
CURRICULUM APPLICATION

Direction: Make a personal financial plan based on short-term and long- term goals. Use the template
sample provided below.

Short-Term Goal target cost value Target Date Savings Plan

Month 1 Month 2 Month Month 4 Month 5 Total
3 Savings

LONG-TERM GOAL YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 Total

target cost value Target Date Savings

BUDGET PLAN
OUTSTANDING CASH INCOME:
EXPENSES AMOUNT
1
2
3
4
5
6
TOTAL
REMAINING CASH

BUDGET PLAN
OUTSTANDING CASH INCOME:

Rank BUDGETED ITEMS AMOUNT

General Expenses, Payables and House Share
Allowance
Bank Savings
Emergency Fund (Cash available anytime)
Insurance
Investment (i.e. Cooperatives, shares, business, etc.)
Total:
LET SAMPLERS: TAKING THE EXAMINATION

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 years

Ill. Strong passion and value for the teaching profession

IV. Lack of value on their career effort and remunerations

A. I and II only

C. II 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

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

B. Expenses

C. Compensation and fringe benefits

D. Emergency funds
5. Why are people victimized by financial scams that end up to the loss lives? 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.