This document discusses the importance of financial literacy and savings. It begins by defining key concepts like money, savings, and investment. It then explains why saving is important, such as for emergencies, retirement, and opportunities. The document addresses common misconceptions about savings and outlines benefits like peace of mind, safety nets, and earning interest. Finally, it provides tips for saving regularly through deductions, reducing expenses, and consumption. The overall message is that financial literacy and savings are vital for security and achieving life goals.

1. "FINANCIAL LITERACY;
THE IMPORTANCE OF
SAVINGS“
(FINANCIAL MANAGEMENT: SAVINGS AND INVESTMENT)
Laja Shoniran
Project Director
Financial Literacy for All (Teach To Save
Initiative)

2. Background
 ‘Train a child the way he should go, and when
he is old he will not depart from it’ Proverbs 22;6
 ‘Go to the ant … consider her ways and be
wise Which, having no chief, Officer or ruler,
Prepares her food in the summer.
And gathers her provision in the harvest. ’
Proverbs 6;6-8

3. Objective
 The concept of money
What is Money?
The three aspects of money
The importance of money
Money Management
 The concept of savings
What is savings?
Why, How and Where do we save?
 The concept of investment
What is investment?
Why should we invest?

4. The Road map
 Opening Thoughts
 Some Definition
 Why do you save?
 Misconceptions about savings
 How to Save

5. WHY SHOULD I LEARN MONEY
SKILLS?
 If you invest as little as N1000 per month,
you could become a millionaire.
 This works according to the principle of
compounding interest.
 Compounding interest will help you grow
your money without having to work for
every dollar.

6. WHY SHOULD I LEARN MONEY
SKILLS?
 What percentage of lottery winners wastes
all their winnings within a few years?
Answer: 70%
 How many football players and celebrities
are broke or bankrupt within 5 years of
retirement?
Answer: More than 60%.

7. WHY SHOULD I LEARN MONEY
SKILLS?
How you handle money affects
 Lifestyle
 Help others
 Free time
 Reduce stress
 Make the world a better place

8. How you handle money

9. Managing your money

10. Opening Thoughts
 “ A penny saved is a penny earned” Benjamin
Franklin
 “You are not rich by how much you spend but by
how much you save” Laja Shoniran
 “If you earn three pence and you did not save,
even if you earn one shilling you will not save”
African proverb
 Precious treasure and oil are in a wise man's
dwelling, but a foolish man devours it. Proverbs 21;20

11. Opening Thoughts
 “Through wisdom a house is built, and by
understanding it is established; and by
knowledge the rooms shall be filled with all
precious and pleasant riches” Proverbs 24; 3-4
 “Poor is he who works with a negligent hand,
but the hand of the diligent makes rich” Proverbs
10;4
 The greatest of all diseases in life is the
absence of money where and when it is
needed

12. Dream Time (A Dream is the wish your heart makes)
 Write down three important things you want to
accomplish in life
Education
Career
Family
Business
Travel
Politics
Others – philanthropy, social cause,

13. What is money?
Goods
Services
Desires
Expectations
Achievements
Accomplishment
Relaxation
Bible says – Eccl 10;19
‘..Money answers/facilitates/finances all
things’

14. What is Financial Literacy
 Understanding how money works
 The ability to make appropriate decisions in
managing your personal finances.
 being able to understand and analyze financial
products in order to make smart decisions
about what to do with your money
 The ability to make informed decisions about
your money

15. Three aspects of money
 Earn Money
Income generation – passive or active
 Manage Money
Saving, Spending, Budgeting, Planning
 Multiply Money
Investments, Business, Real estate

16. What is Saving?
 Rescue from harm, danger, or loss.
 Avoidance of excess expenditure;.
 A reduction in expenditure or cost.
 Saving is income not spent, or deferred
consumption.

17. What is Savings?
 The portion of income/money not spent on
consumption of consumer goods but
accumulated for investment in income
generating ventures – business or real estate,
or purchase of shares.
Investment
Reserve
Funds
Capital
Money

18. Saving money is difficult
 Why?
Human wants are insatiable
I don’t earn enough
Too many responsibilities – extended family
No job – no income
Business is slow
School fees are too high
I spend the bulk of my money on Transportation

19. Why do you need to save
money?
 There is always a tomorrow
 For Retirement age
 Emergency
 To buy or build your own house
 To start a business or grow an existing one
 For leisure goods/vacation
 Education for children
 To give to charity
 To grow or multiply money

20. Secondary school students
 To develop the habit of saving
 To store up money
 To create a brighter future for tomorrow
 To be prepared for important life events like
university, wedding, buying a house, start a
business, etc
 To keep money safe
 To earn interest and help your money grow
 To reduce the temptation of spending
irresponsibly
 To help you access loan to help you in future

21. Misconceptions about Savings
 My income is too small for me to save
 When you save you are worried about the future
 God will always take care of me financially
 Money is for spending
 Saving is hoarding
 You are stingy or penny-pinching when you save
 Whatever will be will be – God will have mercy on
who He will have mercy
 If you are destined to be rich, you will even if you
don’t save

22. What do you benefit by
saving?
 Peace of Mind
 When a person saves money continuously, it
gives them a "peace of mind". An individual will
sleep better at night knowing they have
additional money put aside
 More Income
 Saving money means an individual will have
more of it at the end of the year. This is what
saving money does.

23. What do you benefit by
saving?
 Monetary Safety Net
 Saving money provides a person with a
financial net of safety just in case they lose
their job, become disabled or can no longer
work. Life is uncertain, but money does not
have to be
 Saving Earns Interest
 Allocating money in a certain savings account
will allow it to earn interest.

24. What do you benefit by
saving?
 More Options
 When a person decides to save money and make
it a lifestyle, a plethora of choices is available.
One could invest or purchase something they
want. It is nice to have some wiggle room.
 Attitudinal Change
More Disciplined,
Can delay gratification easily
Can sacrifice and give more easily
Values people and values things more

25. How do we save – money?
 There are three basic ways to save money
1. Making specific deductions from
income regularly
2. Shopping smart to reduce your
expenditure on goods and services
3. Reducing your consumption rate for
goods and services

26. Where to save

27. Conclusion
There are more than
So get a copy of this book and Start Saving Today!

28. Thank You
 Laja Shoniran
Managing Consultant
Infinite Intel Consult
HR Training, Recruiting & Business Consultants
Project Director
Financial Literacy for All (Teach Children to Save
Initiative)
Tel: 08023005235
E-mail: lajashoniran@yahoo.com
Facebook:
www.facebook.com/TeachChildrenToSaveInitiativ
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