financial literacy

2. Alexander B. Raquepo
Chairperson – SACDECO
National President – COOP-Natcco Partylist
Chairperson – Ilocos Consolidated Cooperative
Bank (ICCB)
Vice President – Gender Equality Resource
Center (GERC)
Board of Trustee - MSCB Foundation
Elecom Member – CLIMBS
Education Comm. Member - NSCC

3. Financial
Literacy
101
(How to
become
financially
stable and
independe
nt)

4. Why Financial Literacy?
• We need to be financially literate so that:
• 1. We know how to manage our
finances;
• 2. We can control the use of money;
• 3. We can increase our savings for
financial stability; and
• 4. We will know how and where to
invest.

5. What is Financial Literacy?
• Financial literacy is the ability to
understand how money works:
how someone makes, manages
and invests it, and also expends
it.(Kakayahan sa pag-intindi kung
paano magkaroon, mag-ipon, gumasto
at magpalago ng pera)

6. Why we have money problem?
1. No work, no income, no money;
2. Money problem can be the root of all
other issues, domestic concerns and problems
within the family;
3. We lack knowledge on how to manage our
money and finances. If we have money, we
simply spend it and more often, we don’t think
what we’ll need for tomorrow; and
4. We don’t know how to invest.

7. What do we do then?
WE NEED TO FINANCIALLY
EMPOWER OURSELVES.

8. Some Tips To Empower Oneself
1. Identify which are the
NEEDS and the WANTS.
• Needs- something you
have to have;
• Wants- something you
would like to have.

9. Some…
• 2. Freedom from
WANT.
• - rationalize spending;
• - money is not an end in
itself but a means to an
end;
• - use money for wealth
creation.

10. Some…..
• 3. Get out of debt.
• Live below your means;
• Spend less and buy
only your needs;
• Don’t compare yourself
to others; and
• Don’t compete with
your peers and
neighbors.

11. Some…..
4. Prudent use of money.
Income – Savings= Expenses

12. Some…..
5. Thriftiness and
diligence
• work hard and save;
• don’t wait for grants;
and
• direct help does not
solve the problem.

13. Some…..
• 6. Get loans only if
needed to:
• start or expand
business;
• acquire additional
assets; and
• diversify investments

14. Some…..
7. Self help and financial independence.
- earning your own keeps and budget; and
- making your own cash flow

15. Some…..
8. Improve your physical
and spiritual well-
being.
• health is wealth, its
useless to work-earn-
save-invest if you are
not healthy;
• feed your soul too and
donate to charities

16. Some…..
9. Know your worth.
- know your assets;
- your assets (cash,
receivables, real
properties, house,
jewelries, vehicles, etc.)
- liabilities (loans, A/P, etc.)
- TA-TL= Net Worth
-How much I own – How
much I owe = How much
I’m Worth

17. What can our cooperatives do?
• “Cooperatives are financial
advisors and avenues in the
PRUDENT and WISE use of
money, to improve the
moral and physical values of
people and their will to act
by themselves”.

18. Why do we need Money?
1. We need money to
LIVE.
2. We need money to
GROW.

19. Why do we need Money?
3. We need money to
help others.
4. We need money to live
harmoniously with
others.

20. Why do we need Money?
5. We need money for the future.

21. How to Increase Your Wealth
1. Work hard (but watch
for your health);
2. Spend less (buy only
things that are
necessary and are
extremely needed, not
want);
3. Start a personal savings
program and discipline
(money saved is money
earned); and
4. Acquire financing or
loans to start or expand
business and for wealth
creation (it takes
money to make
money).

22. How To Become Richer
1. Start fattening your
wallet.
- pay for yourself;
- save 20% of your earnings;
- spend only 80%;
- one can’t be rich
overnight, like a seed, it
takes years to become a
“big tree”
2. Control your expenditures.
- make a budget, make a list;
- limit your desires and wants;
- stop betting on number
games or don’t gamble
- avoid vices;
- avoid impulse buying;
- if you intend to shop, go if
“on sale”; and
- buy only things that you need

23. How…..
3. Make your money
multiply.
- the money you saved is
only a start;
- make means to increase
your income, money
and savings;
- invest into business;
- save your money at
credit unions
4. Guard your money
from lost.
- careful study is needed
as to where to invest;
- don’t be lured by easy
money and big
dividend schemes;
- don’t just trust anybody,
be curious and ask the
advise of an expert

24. How…..
5. Own a house and lot.
- it’s a lot better than
renting;
- make your lot productive
6. Ensure a future
income.
- have a retirement plan;
- invest in coops;
-invest in real estate,
treasury bills;
- save or invest for your
retirement

25. 12 Great Tips on Financial Literacy
by: Alexander B. Raquepo
Cooperative Leader and Advocate
1. Invest in cooperatives
- it brings in additional value
to you as a person;
- earnings are tax-free; and
- participate in governance
2. Slowly build up your
share capital
(investment). Regular
add-ons or top-ups are
encouraged daily,
weekly, monthly or
every quarter.

26. 12 Tips…..
• 3. Open savings
accounts for your kids
and every member of
the family besides
enrolling them as
members of credit
unions.
• 4. Borrow or avail of
loans strictly for
productive and
entrepreneurial
purpose only.

27. 12 Tips…..
• 5. Invest in various
forms, types, windows,
programs of your credit
union
• 6. Don’t spend more
than you can earn. This
is simple mathematics.
You cant live and buy
your wants on credit,
it’s a dangerous set-up

28. 12 Tips…..
7. Sell unwanted, not
used or idle properties,
gadgets that you have.
They might not be
needed but might be
needed by others.
8. Buy yourself an
insurance. Its practical,
advisable, non-
debatable and helpful in
times of needs.

29. 12 Tips…..
9. Make an inventory of
your monies and
investments, update it
and make comparisons
and analysis. Make a
cash flow if necessary.
10. Try to live on interest
(LOI). Spend your
interest incomes and let
the principal stay.

30. 12 Tips…..
• 11. Donate and share
to communities and
church. They’re good
luck charms. If you can
do this, its an indicator
that you are financially
capable and
independent.
• 12. Do not gamble. If
you must…don’t; if
enticed…don’t; if
pressured by
peers…don’t, you envy
your neighbor who
won…don’t; etc.

31. The Six Laws of Wealth

32. Six Laws…..
1. Keep a part of all you
earn. Save at least 20%
of your income.
2. Put your savings to
work for you. Invest it
so that it will multiply.

33. Six Laws…..
• 3. Avoid debt. • 4. Don’t speculate in
get rich quick-schemes.
Invest in a solid
business that is long
term.

34. Six Laws…..
5. Invest in yourself. Gain
knowledge and skills to
increase your earning
power.
6. Safeguard your
growing fortune with
diversification and
insurance.

35. 10 Saving Tips (From GMA-7 “Pinaka”
Show)
1. Mag-enjoy ng libre 2. Magbaon

36. 10…..
3. Don’t go to malls. 4. Huwag gumastos pag di
kailangan at iwan ang
credit card sa bahay.

37. 10
5. Mag-invest (but one
must investigate before
investing)
6. Maging simple

38. 10…..
7. Magbayad on time (sa
mga utang); unahin ang
mga obligasyon
8. Magtimpi (discipline)
at mag-ipon muna bago
gumasto.

39. 10…..
9. Maglaan (set aside,
reserve)
10. Maglista (budget,
cash flow and cash on
hand, etc.)

41. If you want to invite me:
Alexander B. Raquepo
Mobile Phone Number : 09194605322
Email Address:
raquepobalex@yahoo.com