4. 4
If you really look
closely, most
overnight successes
took a long time.
Steve Jobs
Founder of Apple
5. 5
We will expand the scope of
employee welfare, to
respond to felt and
reasonable needs by our
academic and non-
academic personnel.
Sec. Leonor Briones
DepEd Secretary
6. 6
Employees’ unique and different needs
Physical
Financial
Emotional
Intellectual
Psychological
Spiritual
7. 7
Employee
needs
Wellness and Welfare Framework
Employee
satisfaction and
engagement
Employee
effectiveness and
productivity
Quality services and
achievement of
mandate
Employee retention
8. 8
DepEd Payroll as of December 2017
6 out of 8 DepEd employees
have loans
10. 10
Course objectives
➔ Teachers and DepEd personnel as financially
literate individuals upholding the dignity of the
teaching profession*
➔ Teachers and DepEd personnel as nation
builders teaching and shaping young citizens,
future leaders
*DepEd Order No. 42 Series 2017. National Adoption and Implementation of the Philippine
Professional Standards for Teachers
11. 11
Did you know?
Filipinos are in
need of financial
education.
88%
Got an average score
(3.2 out of 7)
2%
Got a perfect score
(7 out of 7)
10%
Had no correct answer
(0 out of 7)
Source: World Bank Financial Capability Survey
Philippines, 2015
15. 15
Objectives
➔ Understand financial planning
➔ Learn practical tips and tools on proper
financial planning
➔ Know the financial planning cycle
➔ Understand the importance of financial
planning
MODULE 1
16. 16
Good fortune is what
happens when
opportunity meets
with planning.
Thomas Edison, inventor and businessman
17. 17
What is
MODULE 1
financial planning?
A comprehensive evaluation of an individual’s (or
household’s) current and future financial state to
predict and manage future cash flows, expenditures,
and asset values
18. 18
MODULE 1
MODULE 1
What do you want to
achieve after ten years?
Visualize your goals and dreams. Be specific in
your drawings (ex. Married with two kids, own
house and lot and car)
5 minutes
Visioning Exercise
20. 20
MODULE 1
List down your savings goal based
on the visioning exercise.
Step 1
Goal Target amount Number of months
to save
Amount to save
per month
House and Lot 1,000,000.00 200 5,000.00
Total Target Savings Goal 1,000,000.00
21. 21
If you want it,
measure it. If you
can’t measure it,
forget it.
Peter Drucker
Management consultant, educator, and author
22. 22
MODULE 1
Step 2
List down all sources of income...
I. Sources of Income
Income 1
_____
Income 2
_____
Income 3
_____
Other income
_____
Gross income _____
II. Deductions on Total Income
A. Tax
GSIS/SSS _____
PhilHealth _____
B. Monthly Amortization
Others (specify) _____
Total deductions _____
23. 23
MODULE 1
Step 2
...and expenses.
III. Expenses
A. Basic Needs
Food
_____
Rent
_____
Utility Bills
_____
Tuition Fees
_____
Medical Expense
_____
Personal Needs
_____
Others:
_____
B. Debts
Bank or Other Financial Institutions
_____
Potential Savings
_____
(Net income - total expenses)
24. 24
MODULE 1
Step 3
Review your budget and see what you can add to your
income and subtract from your expenses. Compute for
your potential savings.
Amount
Potential Savings
Less: Total Target Savings Goal
(from Step 1)
Savings Capacity
(should be positive)
25. 25
MODULE 1
Step 4
Write your action plan to reach your savings goal.
Ex. I will limit my spending for “wants” to PHP1,000 per month.
Amount
Potential Savings
Less: Total Target Savings Goal
(from Step 1)
Savings Capacity
(should be positive)
26. 26
MODULE 1
The correct saving formula
Income Savings Expenses
— =
➔ List all your income
sources with
amounts per month
➔ Subtract taxes,
other mandatory
deductions, loan
payments
➔ List all your savings
goals, how much,
and when you want
to achieve them
➔ Compute how much
you need to save
per month to reach
your goals on time
➔ List all your expenses—
basic needs first, then
wants—with amounts per
month
➔ Compare your total income
vs. your total expenses vs.
savings goals
➔ Decide on which expense to
reduce, defer, or eliminate,
in favor of your savings
goals
28. 28
MODULE 1
Financial planning cycle
What is my
situation?
What do I
want to
achieve?
What must
I do to
achieve it?
Am I doing
it?
What
changes
do I need
to make?
➔ Income vs. expenses
➔ Needs vs. wants
➔ Savings goals
➔ Investment goals
➔ Retirement goals
➔ Reduce expenses
➔ Increase income
➔ Invest wisely
➔ Disciplined spending
➔ Working smartly
➔ Investing weekly
➔ Changes in goals
➔ Changes in situation
➔ Unfulfilled plans
29. 29
MODULE 1
MODULE 1
Why make a financial plan?
➔ Control over spending
➔ Security from risk
➔ Freedom from worry
➔ Sustainability of lifestyle
➔ Freedom from debt
➔ Realizing dreams
30. 30
MODULE 1
MODULE 1
“A good
planning
without
good
working is
nothing”
Dwight D. Eisenhower
1890-1969
34th US President
KEY MESSAGE
SUGGESTED SCRIPT
Who wants to get rich quickly? Raise your hands.
Transition to next slide
KEY MESSAGE:
Data on DepEd employees’ indebtedness
Financial freedom and indebtedness are not based on how big your salary is but on how you manage your finances well
SUGGESTED SCRIPT:
A study in 2017 on the payroll of DepEd employees shows that out of 800,000 employees, there are 600,000 employees with loan
NOTE:
*** This slide may be changed to the data of the Region or Division
SUGGESTED SCRIPT
A total of 300 Billion pesos remain as outstanding loans. So how did it happen?
Most of us would say, “kasi maliit ang sweldo”, “kailangan namin ng salary increase!”
Our Secretary is bothered by this data and her answer to this is that we don’t just need a salary increase, “we need financial literacy”.
When we are reviewing the data of the employees, each employee has different salary levels. Example, Teacher 1 receives a salary of 20 thousand while the Principal receives 40thousand But what’s the common denominator? Both of them receive a net income of P5,000. Which means, no matter how high your salary is, if we don’t know how to manage it well, wala ring mangyayari sa sweldo natin.
NOTE:
“Lifestyle inflation” may be discussed briefly. This is the tendency of individuals and families to increase their spending unnecessarily when their income goes up, making it difficulty to get out of debt.
SUGGESTED SCRIPT:
The number one problem in today’s generation and economy is the lack of financial literacy and that is one of the reasons why we designed this program. Our objectives are:
1. Promote the importance of managing one’s personal finances
2. Build awareness and confidence in managing finances by teaching the basic principles in Saving, Budgeting and Investments
KEY MESSAGE:
Objectives of the seminar
Participants must understand that this seminar provides only the basic concept of personal financial management and that financial freedom is a long process
Participants must also have a perspective that the objective of PFM is to empower them to make better financial decisions.
KEY MESSAGE:
The data shows how Filipinos ARE low in Financial literacy
SUGGESTED SCRIPT:
A survey conducted by the World Bank in 2015 shows that majority of Filipino adults can't answer basic questions on financial literacy (refer to slides for percentages).
TALKING POINTS
Spiel: Financial literacy or fin lit refers to the brain, or our knowledge of financial concepts.
After we gain enough knowledge, we can then move on to our hands – financial capability means applying these concepts in our day-to-day money decisions.
TALKING POINTS
Spiel: Why is financial education important?
personal financial choices GIVE impact INTO economic and financial well-being. If you know how to use your money well, you become a better financial consumer.
KEY MESSAGE
Fin lit is knowledge, fin capability is application, fin-ed is the tool FOR you to gAIN/HAVE both.
Part of the process is to understand the importance of financial education
AND BEFORE WE PROCEED, PLEASE WATCH THIS VIDEO
That was a short-animated video emphasizing the importance of being financially-literate. It was developed by the Bangko Sentral ng Pilipinas (BSP) as part of its regular posts for PisoLit, the BSP-managed financial education page on Facebook, Instagram and Twitter.
KEY MESSAGE:
Personal Financial Management Modules
SUGGESTED SCRIPT:
This training is divided into 6 modules.
SUGGESTED SCRIPT:
Our session objectives are…
Read the slide
SUGGESTED SCRIPT:
Take the famous quote from Thomas Edison that “Good fortune is what happens when opportunity meets with planning.” Some people think success happens when opportunity knocks, but according to this quote it only happens when planning and opportunity meet. Things can either be planned or be left to randomness.
Who among you have had a medical check-up this year?
Transition to next slide
SUGGESTED SCRIPT
Just like our physical health, our financial health needs check-ups in the form of financial planning.
KEY MESSAGE:
Regular financial planning is essential to financial health
He who fails to plan, plans to fail
SUGGESTED SCRIPT:
For classroom or online setting:
In a piece of paper, draw an image that represents your dream or goal in the next 10 years. We will give you 5 minutes for this activity.
NOTE: Ask at least 2 participants to share their output
TALKING POINTS/KEY MESSAGE:
We all have dreams/goals and in order to achieve that, you have to plan and prepare for them
Visualization of goals and dreams in the next 5 to 10 years
The practice of visualizing your dreams as already complete can accelerate your achievement of these dreams, goals, and ambitions
To be able to achieve your goals, you have to plan and prepare for it—whether that is starting your own family, buying your own house and lot, starting a business, etc.
SUGGESTED SCRIPT (after sharing of output):
We were all told to dream big. However, as we grow up, we realize that all dreams have financial costs. Our dreams should be converted to goals (SMART). But remember, a goal without a plan is just a wish.
KEY MESSAGE:
Financial Planning Exercise
There are steps in financial planning and the 1st step is creating a budget plan
KEY MESSAGE:
Financial Planning Exercise
Steps in creating a monthly budget
Step 1: List down your savings goal based on the previous visioning exercise.
Put a “price” on your goal. It is important to know how much the dream costs so you know how much to save
SUGGESTED SCRIPT :
During our visioning exercise, we are reminded that our goals will entail costs, and they should be SMART meaning, they should be Specific (you might want to have exact saving goals), Measurable (it requires figures), Achievable and Realistic (you are achieving a goal based on your what you have or your source of income) and Time-bound (time should be considered).
It is important to know your financial situation and write down all expenses and income. There are three things that you might realize from this exercise:
1) You actually have potential savings that you end up spending on the small things
2) You need to adjust your spending
3) You need to adjust your income
Either way, this exercise will help you properly assess your situation and plan for the achievement of your vision. The first thing we need to do is list down our savings goals. If our vision contains a house and lot for example, compute for your target monthly savings in order to be able to afford that dream within a realistic period of time.
Note:
For classroom setting share the form
For online setting share the online form
KEY MESSAGE:
Step 2: List down all sources of income and expenses. Important to write down ALL expenses including the small items like vices (if any), spa or salon visits, etc, and ALL income (not just from your regular salary)
SUGGESTED SCRIPT
If you have other sources of income aside from your salary, write that down as well.
If at the end of the page, you do not have any savings…
Transition to next slide
KEY MESSAGE:
Step 3: Review your budget plan and see how can you adjust
SUGGESTED SCRIPT:
Continuation spiel: go back to your budget and see what you can add to your income or subtract from your expenses. Once adjustments have been made, compute for your potential savings.
KEY MESSAGE:
Step 4: Write down your action plan to reach your savings goal
SUGGESTED SCRIPT:
Lastly, write down your action plan or the concrete changes you will make in order to reach your savings goals.
NOTE:
Reinforce the visioning exercise. Remind the audience to relate the savings goals to the visioning exercise and budget.
Be specific, and include even small things (coffee, vices, shopping, haircut, make up)
KEY MESSAGE:
The benefits of having a financial plan:
It controls overspending
Security from risk
Freedom from worry
Sustainability of lifestyle
Freedom from debt
Realizing dreams
Stick to your financial plan to achieve these things
SUGGESTED SCRIPT:
Spiel: Who here wants to enjoy all of these 6 things?
OPTION 1 Spiel: Keep those hands raised! Everyone who raised their hands will achieve all that so start making a financial plan – STICK TO IT.
