SAN ISIDRO NATIONAL HIGH

SCHOOL
JUNE 22, 2023
1. What is money?
2. Why is money so
important?
3. Does money control
you? Or Do you control
money?
4. Why many people have
trouble in balancing
 When it comes to securing and saving
their future, many good people fail. Many
hardworking people fail. Many smart people
fail. Many old people fail. Many
professionals like teachers, engineers,
doctors fail. Many end up retiring from
work without enough savings. Why? It is
because they lack financial education.
The Urgent Need for Financial Education
The lack of financial education
should be addressed so that
people will be able to plan and
manage their personal finances
properly.
Lack of knowledge and
understanding about personal
finance is causing a lot of Filipinos
to lose money and retire poor. It is
also destroying relationships.
Statistics show that 90% of
marriages are broken because of
financial problem. Hence, to
prevent these from happening,
there is an urgent need for
WHY DO MANY PEOPLE FAIL
WHEN IT COMES SECURING AND
SAVING THEIR FUTURE?

Prevailing Mindsets About Money

Many people believe that financial education
is only for the wealthy.
Many think that the only solution to financial
challenges is to borrow money.
Some say that because they are poor, they
don’t need to save.
DID YOU KNOW THAT THE
PHILIPPINES IS ONE OF THE FEW
COUNTRIES THAT HAS THE 13TH
MONTH PAY?
Imagine your money:
If you save your 13th month pay for 6 years,
then based on the power of compound
interest, you could already have close to 10
million pesos in savings and investments in the
next 40 years. If you sacrifice for 6 years, you
could already change your life.
FINANCIAL EDUCATION
GUIDING PRINCIPLE MADE
EASY
There is a saying, “Plant what you want
to harvest. If you want to harvest
tomatoes, plant tomatoes, if you want to
harvest rice, plant rice. However, if you
want to harvest money, then learn to
plant money.
The owner of Microsoft, Mr. Bill Gates
said, “If you were born poor, it is not a
mistake, but if you die poor, it is a
mistake”

Remember, nobody should be more

interested and invested in your
financial future than yourself. The
government or your employer will not
do it for you. It is your responsibility to
learn the simple rules of how money
works. Understanding it is part as
taking care of your family.
GETTING TO KNOW THE BASIC
FINANCIAL CONCEPTS
Knowing the basic financial concepts is the
beginning of building solid financial foundation.
It is not only a dream but it is also a priority that
every person should aim for. Take control of
your future by learning how to:
Make Money
Save Money No one else will
Grow Money do these for
you, other than
Protect Money
yourself.
BUILDING BLOCKS OF A
STRONG FINANCIAL
FOUNDATION (FIG. 1)
INVESTMEN
T
EMERGENCY FUND
DEBT
MANAGMENT
PROTECTION
HEALTHCARE
 BUILDING A SOLID FINANCIAL
FOUNDATION IS JUST LIKE BUILDING A
HOUSE. YOU BUILD IT FROM GROUND
UP AS SEEN IN FIGURE 1.
First, you must have proper healthcare coverage in
the event of serious health problems or sickness.

Second, you must have proper protection in the

event of premature death.

Third, manage and pay off all your bad debts.

Fourth, set aside 3 to 6 months of your income to

deal with sudden changes in the job or business.

Fifth, save and make long-term investments.

FOUNDATION WILL RESULT TO
YOU HAVING STURDIER AND
RESILIENT FINANCES THAT
CAN WITHSTAND ANY MONEY-
RELATED STORMS,
TORNADOES, AND
EARTHQUAKES. FOLLOWING
THESE FIVE BUILDING BLOCKS
OF A STRONG FINANCIAL
EDUCATION WILL HELP BUILD
AND SECURE YOUR FINANCIAL
FUTURE.
UNDERSTANDING HOW MONEY
WORKS
The Wealth Formula (Fig. 2)

+ Money
+ Time
+ -Rate of Return
-Inflation
-Tax
__________________
= WEALTH
You can grow wealth if can make the positive (+)
much bigger than the negative (-). If the minuses are
higher than the pluses, then there is no wealth created.
MONEY TALK: STRATEGIES
OF THE WEALTHY
 Most people spend money and save
what is left.
Wealthy people save money and spend
what is left.
 Most people consider healthcare and
insurance as an expense.
Wealthy people consider healthcare
and insurance as an investment.
 Most people work hard for the money.
Wealthy people let money work for
them.
THE 3 MAJOR FINANCIAL
NEEDS
1. Income Protection/Life
Insurance
2. Investment
3. Long-Term Healthcare
 MANAGING DEBTS
EFFECTIVELY
 Learn to differentiate Bad Debt
from Good Debt
 Debt can turn into a disease. It
could control your life, diminish
your happiness, and limit your
freedom
 Don’t get into more debt. Live
below your means. Don’t spend
more than you make.
 As much as possible pay off your
credit card in full, buy on cash not
on installment.
BUILDING AN EMERGENCY
FUND
No matter how much you plan in
life, the unexpected things still
happen. And to prepare for little
“disasters”, set up an emergency
fund to help you pay the unforeseen
expenses.

A basic rule of thumb for

determining how much you should
set aside is 3 to 6 months of your
total expenses.
STEPS IN BUILDING AN
EMERGENCY FUND
1. Start by saving at least Php 1,000 a
month
2. Increase to 3 times monthly income
3. Increase to 6 times monthly income

Here are some good options where to

put your Emergency Funds:
 Low-Risk Bond/Mutual Funds
 Money Market Funds
 A separate Bank Account without
Debit Card or Online Access.
SAVING THE WRONG WAY
Some people have this problem:
“I’ve been working hard all my life
but I was not able to save anything.
Where did my money go?”
If you have this problem, maybe
it’s because you have been using the
wrong formula of saving.
Saving the wrong way:
Formula: INCOME – EXPENSES =
SAVINGS
SAVING THE RIGHT WAY
Warren Buffet, one of the wealthiest men
in the world, gives this advice, “Don’t
save what is left after spending; spend
what is left after saving.”

The correct formula for saving:

INCOME – SAVINGS =
EXPENSES
Before you spend, you save
first, or use this formula:
INCOME – TITHES – SAVINGS =
EXPENSES
GUIDING PRINCIPLE ON
SAVING MONEY
As a guide, set aside 10% of your income
for your spiritual growth or to the
church.
Pay yourself first through saving for your
future at least 20% of your income or
more. Treat it like a bill that you must
pay. That’s your family financial bill.
Small savings, Big Money. One way to
increase your savings is to reduce your
expenses.
Time is money. The sooner you save, the
better your future. As much as possible,
start saving at young age.
GUIDING PRINCIPLES ON
SAVING MONEY
Remember, it’s not how much you
earn that counts. It’s how much you
keep. One of the common traits among
rich people is that are very conscientious
when it comes to spending.

Your two options are:

a. Save now and enjoy later
b. Spend now and suffer later

START SAVING TODAY!!!

TIPS IN DEVELOPING THE
RIGHT MINDSET
1. Increase your cash flow.
2. Spend less. Reduce your
expenses.
3. Zero out bad debts.
4. Understand how money works.
5. Define your financial goals.
6. Have proper protection.
7. Build up your wealth.
 FREQUENTLY ASK
QUESTIONS
1. How would you know how much
protection do you need?’
Answer. Your total life insurance
coverage should be your annual
income x 10.
2. How much should you save for your
emergency fund?
Answer. You should save at least
3 to 6 months of your monthly income.
3. Where should you invest/save your
money and earn a return that is
above the inflation rate?
Answer. The most realistic
investment is mutual funds.
4. What is the minimum amount
required to invest a mutual fund?
Answer. Php 5,000.00
5. Where can I attend seminar on
financial management?
“ Financial education and discipline
can help you become wealthy. You
can do it. You can control and save
for your future. Be a financial
educator of your. own. “SAVE THE
RIGHT WAY”