2. What is FINANCIAL
LITERACY?
—Financial literacy refers to the ability to understand and apply
different financial skills effectively, including personal financial
management, budgeting, and saving. Financial literacy makes
individuals becomeself-sufficient, so that financial stability can
be accomplished.
3. 1.National Endowment for financial education
2.Incharge education foundation 2017
3.Mandell 2009
4.Hasting 2013
There are 4 person or an organizationt that define
FINANCIAL LITERACY.
4. According to Go(2017) financial
education and advocacy programs in
both public and private sectors have
been indentify as the key areas in
bulding and improved financial in the
Philippines.
5. Republic Act 10922
(Economic and financial literacy act)
Mandate DePed to "ensure that economic
and financial education becomes an integral
part of formal learning.
6. COUNCIL FOR ECONOMIC EDUCATION
—this particular organization is the leading
organization in the United States thats
focuses in the economic and financial
education, so this particular organization
developed 6 standards towards
understanding the finance through
economic perspective
7. This is the 6 standards developed of economic Education
1.Earning Money/ Income
2.Buying goods and services
3.Saving
4.Using credit
5.Financial Investing
6.Protecting and Insuring
8. STANDARDS KEY CONCEPTS
EARNING INCOME 1. Income, earned or received by people.
2. Different types of jobs as well as different
forms of income earned received.
3. Benefits and cost of increasing income
through the acquisition of education and
skills.
4. Government programs that affect income.
5. Types of income and taxes
6. labor market.
9. BUYING GOODS AND SERVICES 1. Scarcity, choice, and opportunity cost.
2. Factors that influence spending choices, such
as advertising, peer pressure and spending
choices of others.
3. Comparing the cost and benefits of spending
decisions.
4. Basic of budgeting and planning.
5. Making a spending decision
6. Payment method, cost, and benefits of each.
7. Budgeting and classification of expenses.
8. Satisfaction, determinants of demand, cost of
information search choice of product
durability.
9. The role of government and other institutions
in providing information for consumers .
10. SAVING 1. Concept of saving and interest.
2. How people save money, where people can save money,
and why people save money.
3. The role that financial institutions play as intermediaries
between saver and borrowers.
4. The role government agencies such as the Federal Deposit
Insurance Corporation(FDIC) play in protecting saving
deposits
5. Role of markets in determining interest rates.
6. The mathematics of saving.
7. The power of compound interest.
8. Real versus nominal interest rates.
9. Present versus future value.
10. Financial regulators.
11. The factors determining the value of a person's saving
overtime.
12. Automatic saving plans "rainy-day" funds.
13. Saving for retirement.
11. USING CREDIT 1. Concept of credit and the cost of using credit.
2. Why people use credit and the sources of credit
3. Why interest rates vary across borrowers
4. Basic calculations related to borrowing(principal,
interest, compound interest)
5. Credit reports and credit scores
6. Behavior that contribute to strong credit reports
and scores
7. Impact of credit reports and scores on
consumers
8. Consumers protection laws
12. FINANCIAL INVESTING 1. Concept of financial
investment
2. Variety of possible financial
investment
3. Calculate rates of return
4. Relevance and calculation
of real and after-tax rates of
return
13. PROTECTING AND
INSURING
1. Concepts of financial risk in
loss
2. Insurance(transfer of risk
through risk fooling)
3. Managing risk
4. Indentity theft
5. Life insurance products
6. How to protect oneself agains
indentity theft.