This document provides information about financial literacy and personal finance. It begins by defining concepts like instant gratification and financial independence. It then prompts the reader to assess their current financial situation by preparing a personal statement of assets and liabilities. The rest of the document outlines 10 rules for financial freedom, including setting savings goals, protecting your income, understanding investment principles like compound interest, and making use of cooperative organizations for strength in numbers.

1. FINANCIAL
LITERACY
Marie Fe V. Jambaro –
Sibbaluca Ph.,D.
Resourse Speaker

2. REALITYCHECK

3. ANG PERA,
PARATING PALANG…
PAALIS NA!

5. RASON:

6. RASON:
“Culprit” Instant Gratification
 Instant gratification is the immediate desire to feel satisfaction.
 When someone does something and receives instant positive results, this is
considered instant gratification.
 An example would be a person driving in their car and hearing a commercial
about a new flavor of milkshake at a local fast-food chain.

7. PERSONALFINANCE &
FINANCIALLITERACY
Is nothing but knowing
How to keep what YOU earn
and
do More
with what you Keep
FINANCIAL LITERACY
is understanding how you
can build your personal
wealth

8. What is financial independence?
What do you mean by “financially literate?”
What is wealth?
Kailan ba maituturing na “mayaman”
na ang isang tao?

13. WHERE ARE YOU NOW?

14. WHERE ARE YOU NOW?
Prepare your Personal Financial
Statements or Statement of Assets &
Liabilities (SAL)

15. Salary
Interest Income from Savings and Time deposits
Income from Investments in Government Securities & stocks
Income from Other Assets
Less: Expenses
Food
Rent
Monthly Amortization for housing, car & other loans
Utilities
Insurance Premiums
Allowance of children
tuition fees
Other expenses
Net Income
Less: Personal Income Tax
Net Income after tax

16. FINANCIAL PLANNING
 The benefits of having a sound financial plan:

17. INCOME EXPENDITURES CAN BE
CLASSIFIED AS FOLLOWS :
⚫Consumption
⚫Protection
⚫Savings
⚫Taxes

18. Statement of Assets &
Liabilities
ASSETS
Cash (Cash on hand, bank deposits,Coop deposits, etc)
Properties that you own (House, land, car, jewelry, etc)
Receivables (mga pautang)
Investments (T-bills, T-bonds, shares of stock, Coop Capital, etc.)
Insurance & pension and academic plans.
LIABILITIES
Loans you owe your relatives & friends
Housing loan
car loan
credit card debt
all payables & other loans
Total Assets – Total Liabilities = Net Worth

19. THE CASHFLOW GAME
INCOME
EXPENSES
ASSETS LIABILITIES

20. CASH FLOW 1
INCOME
EXPENSES
ASSETS LIABILITIES
Job or
Profession
- Larry Gamboa
Think Rich, Pinoy!

21. INCOME
EXPENSES
ASSETS LIABILITIES
Job or
Profession
- Larry Gamboa
Think Rich, Pinoy!
CASH FLOW 2

22. INCOME
EXPENSES
ASSETS LIABILITIES
Job or
Profession
- Larry Gamboa
Think Rich, Pinoy!
CASH FLOW OF THE RICH

23. Start-up
1
Build-up
2
3
Fine tuning
FINANCIAL LIFE PHASE
Where do you want
to be in the future?
Where are you now?
4
RETIREMENT

24. Kalayaan
SA
KAKAPUSA
N (Ksk)
RULES

25. SIMPLE RULES IN FINANCIAL
FREEDOM

27. REDEFINING SAVINGS
It must be defined as
an EXPENSE.
It is an expense that
BUYS your FUTURE.

28. SAVINGS

30. KSK RULE #2
Define your Financial Target at each Life phase

31. RULES IN SETTING
GOALS
Put it
into
writing
State it
in
positive
terms
Set
specific
timetable
for each
goal
Monitor
progress

32. Procrastination - delaying savings or
putting savings off for another time;
Poor Spending Habits –
includes spending on
unnecessary items; Impulse
buying; hedonistic lifestyle

34. Stop spending on things that diminish in value.
Know the differencebetween ASSETS & LIABILITIES.
Poor Spending Habits –
• Impulse buying
• Uso kasi
•Too much
entertainment
KSK RULE #3

35. Know the difference
Your
NEEDS
Your
WANTS

36. KSK RULE #4
!
Protect your greatest income
generating asset, YOURSELF!

37. GOD HELPS ONLY THOSE
WHO HELP THEMSELVES

38. Grow with the
Economy
and
Beat Inflation
KSK RULE #5

39. AN ILLUSTRATIVE FORMULA OF
80/20
43

40. KSK RULE #6

41. Power of Compounding
Year Principal
Simple
Interest
Total Principal
Compound
interest Total
End of 1 yr 1000 100 1100 1000 100 1100
End of 2 yr 1000 100 1200 1100 110 1210
End of 3 yr 1000 100 1300 1210 121 1331
End of 4yr 1000 100 1400 1331 133 1464
End of 5 yr 1000 100 1500 1464 146 1611
End of 6yr 1000 100 1600 1611 161 1772
End of 7yr 1000 100 1700 1772 177 1949
End of 8 yr 1000 100 1800 1949 195 2144
End of 9 yr 1000 100 1900 2144 214 2358
End of 10 yr 1000 100 2000 2358 236 2594
Difference 594

42. RULE OF 72
(DOUBLE YOUR MONEY)
20 %
No. of years =
72
= 3.6 years

43. Investing & Inflation
⚫INFLATION
◦Is the economic condition of sustained price
increases.
◦Money is an asset that continuously losses its
value.

45. 3 yrs.
No. of years =
72
= 24 %

46. Assess Risk & Option
INVESTMENT
 Note: The higher the risk, the higher the return.
 Always investigate 1st before believing
LOAN
KSK RULE #7
UNDERSTANDING

47. When do banks or lenders lend?
⚫ The ability of the borrower to prove that he will use the proceeds of the
loan in an activity that will produce sufficient income to repay the loan.
⚫ The borrower has more than enough sustainable income to pay for
the loan plus interest;
⚫ The lender does not mind foreclosing on or taking over the
collateral

49. MAKE MONEY WORK FOR YOU:
THE POWER OF LEVERAGE
⚫Borrowing – leverage in finance
(Analyzing Good Debt)
⚫People leverage
KSK RULE #8

50. INVESTMENTS

51. MAKE YOUR
MONEY
GROW
Invest your savings in
money-making assets.
MAKE YOUR MONEY WORK
FOR YOU.
KSK RULE #9

54. Eight Simple Ways To Invest
⚫Invest in debt and
gambling reduction
⚫Lending investments:
◦ Gov’t/corporate Bonds
◦ Banks
◦ Pension Plans

55. ⚫Real Estate
⚫Stock Market
⚫Mutual funds
⚫Engage in Business
Eight Simple Ways To Invest

56. ALERT #2
When Buying Real Estate Property
⚫ Do a canvass on the location, area, total cost, down payment and
monthly installments for house and lot and get information for
several houses from which your family can choose your desired
home; Take your time; Don’t be in a hurry;
⚫ Make sure the property you are buying is properly titled and has no
claimants “clean title” other than the owner. Check with the registry
of deeds where the property is located;

57. ALERT #2
When Buying Real Estate Property
⚫ If the property is newly developed, check with the HLURB if
the seller is accredited and has license to sell property;
⚫ Get a document in exchange for every payment you
make, whether it is an official receipt, a contract to buy and sell,
deed of absolute sale or the original title itself;
⚫ If you can easily afford to pay in cash, ask for a big discount
because you are doing the owner a big favor.

58. Investing in Your Own Business
⚫ Remember that not everyone has what it
takes to run a successful business;
⚫ If you think that you have what it takes to
become a successful business person, then
its time to plan your business;

59. Investing in Your Own Business
⚫ Think about what business you can engage in;
⚫ Look around you and identify business opportunities and
evaluate each options;
⚫ Do a situational analysis; identify the strengths,
weaknesses, opportunities and threats to your proposed
business.

60. Negative Mindsets
⚫“I do not have enough money”
⚫“I do not have good enough ideas”
⚫Distrust of people – “mandaraya silang
lahat”
⚫Fear of failure

61. The Case For Would-be
Entrepreneurs
⚫ They lacked the business & management skills
⚫ They may have had enough money in the
beginning but miscalculated the working capital
requirements & were thus unable to raise the
correct financing when they needed it

62. The Case For Would-be
Entrepreneurs
⚫ They seriously mismanaged the operations of the
business.
⚫ They did not see the value of competent staff or of
consulting advisors in the areas of marketing,
production, technology, legal aspects, personnel &
importantly leadership

63. Make Use of the Power of One:
Saving together provides more & varied
opportunities to earn higher returns as
well as secure better benefits for all.
⚫ Cooperatives are a good way to avail of
the power of many.
KSK RULE #10
Strength in Numbers

65. Discipline

67. In good or bad times,
Never give up!
Remember, Winning
is a habit Make it
yours!

68. THE IMPORTANCE OF
SHARING
Walang sino
man ay
nabubuhay
p a r a sa
s a r i l i
lamang.
Tayong l a h a t
ay may
pananagutan
sa isa’t isa.
Sharing always brings more
blessings

69. “ You have not lived a
Perfect day,
even though
you have earned your money,
unless you have done something
for someone who will never be
able to repay you”
-Ruth Smeltzer

71. Alam nyo ba?
You’re gaining 86, 400 a day?

72. Alam nyo ba?
You’re gaining 86, 400 a day?
60 sec. x 60 min. x 24 hours
= 86,400 seconds a day

74. Albanne_10
Thank You & God Bless!