The document outlines the importance of financial literacy by differentiating between assets and liabilities, highlighting common financial pitfalls of lottery winners and celebrities. It defines assets as income-generating items and liabilities as expenses that drain resources, providing examples of each. The emphasis is on understanding cash flow patterns to achieve better financial health.

1. ASSETS VS LIABILITIES

2. Agenda
Why financial literacy is important
Difference between an asset and a liability
Cash flow patterns for an asset and liability
Examples of assets and liabilities in our day to day life
Ideal cash flow pattern

3. Why teach financial
literacy?
 Stories of lottery winners
 Poor -> Rich -> Poor
 They win millions yet are back to where they
started
 Stories of famous celebrities
 At young age, they earn in millions
 After 10 years, sleeping under a bridge or
begging
 Google Search
 Lottery winners who lost it all
 Celebrities who lost it all

4. What is the
common
habit among
them all?

5.  They earned in millions
 Money spent in creating liabilities than assets
 Huge debt

6. What is an asset
An asset puts money in your pocket Assets generate additional income

7. What is a liability
A liability takes money from your pocket Doesn’t generate any income

8. Cash Flow
Pattern of
an asset

9. Cash Flow
Pattern of
a Liability

10. Examples of
assets
 Stocks
 Bonds
 Fixed deposits
 Real Estate
 Intellectual property like
patents, copyrights etc

11. Examples of liabilities
 Loans
 Car loan
 House loan
 Car
 Some cars value increases with
time.
 Rare and costly
 Rental car - asset

12. Is your house an
asset or a
liability?

13.  Your house value does increases
with time
 But will you ever sell your
house?

14. Ideal cash flow
pattern

15. THANK YOU
REFERENCE