Building and Enhancing New Literacies Across the

Curriculum
FINANCIAL LITERACY insurance, personal liability
coverage, property & casuality
Is a core life skill where people need to take
coverage & catastrophic
charge of their own finances, budget,
coverage.
financial choices, managing risks, saving,
c. Long-term investment plan –
credit, & financial transactions.
based on specific investment
Poor financial decisions can have long-lasting objectives & personal risk
impact on individual, their families, & the tolerance profile.
society caused by lack of financial literacy. d. Tax reduction strategy –
minimizing taxes on personal
Is the ability to make informed judgement & income allowed by the tax code.
make effective decisions regarding the use &
management of money. 5 Financial Improvement Strategies

Financial Plan 1. Identify your starting point

2. Set priorities
Comprehensive statement of an individual’s 3. Document your spending
long-term objectives for security & well-being 4. Lay down your debt
& detailed savings & investing strategy for 5. Secure financial future
achieving objectives.
Financial Goal Planning & Setting
Begins with a thorough evaluation of the
individual’s current financial state & future Financial goals are targets, usually driven by
expectations. specific future financial needs, such as
savings for a comfortable retirement, sending
Steps in Creating a Financial Plan children to college or enabling a home
1. Calculate net worth – net worth is the purchase.
amount by which assets exceed 3 key areas in setting investment goals for
liabilities. In doing so, consider the: consideration
a. Assets that entail one’s cash,
property, investments, savings, 1. Time horizon - indicates the time
jewelry & wealth when the money will be needed.
b. Liabilities that include credit 2. Risk Tolerance – risk averse or risk
card debt, loans & mortgage. seekers. Time horizon can affect risk
tolerance.
Formula: total assets – liabilities = net worth. 3. Liquidity needs – refers to how quickly
2. Determining cash flow – know where an investment can be converted to
money goes every month. cash. Liquidity needs usually affect the
Documentation will help to see how type of chosen investment to meet the
much is needed for every month’s goals.
necessities & amount for savings & 4. Investment goals; Growth income &
investments stability – when considering any
3. Considering priorities – the core of investment think about what it offers in
financial plan is the person’s clearly terms of 3 key investment goals:
defined goals that may include: a. Growth – is an increase in the
a. Retirement strategy for value of an investment
accumulating retirement income b. Income – of which some
b. Comprehensive risk investments make periodic
management plan including a payments of interest or
review of life & disability dividends that represent
 investment income & can be
spent or reinvested.
Investment & Investing
c. Stability – known as capital
preservation or protection of 4 aspects to consider in investing money
principal
Budget & Budgeting
Budget is an estimation of revenue &
expenses over a specified future period of
time & is usually compiled & re-evaluated on
a periodic basis.
Budgeting is the process of creating a plan to
spend money, which allow one to determine Savings
in advance whether he/she will have enough Will help you get out of debt. Will also help in
money to do the things he/she needs or likes buying things that are needed or wanted
to do. w/out borrowing.
7 Steps to Good Budgeting Emergency Savings Funds - if you receive
1. Set realistic Goals a bonus from work, an income tax refund or
2. Identify income & expenses earnings from additional or side jobs, use
3. Separate needs from wants them as an emergency fund.
4. Design your budget 10 reasons why save money
5. Put plan into action
6. Plan for seasonal expenses 1. To become financially independent
7. Look ahead 2. To save on everything you buy
3. To buy a home or a car
Spending 4. To prepare for the future
Budget goals serves as a financial wish list, a 5. To get out of debt
spending plan is a way to make those wishes 6. To augment annual expenses
a reality. 7. To settle unforeseen expenses
8. To respond to emergencies
Strategies in setting & prioritizing budget 9. To mitigate losing your job or getting
goals & spending plans hurt
10. To have a good life
1. Start by listing your goals
2. Divide your goals according to how Common financial scams to avoid
long it will take to meet each goals.
3. Estimate the cost of each goal & find Phishing - Scammers send an email
out how much it costs that appears to come from financial
4. Project future cost institution, such as banks and asks
5. Calculate how much you need to set you to click a link to update your
aside each period account information.
6. Prioritize your goals Social Media Scams - Scammers are
7. Create a schedule for meeting your adept at using social media together
goals. information about the traveling habits
of potential victims. They also have
phishing tactics, including posts
seeking charity donations with links
that allows them to keep your money.
Phone Scams - Phone calls.
Scammers pose as a government
agency, and use scare tactics to
 acquire your personal information and school to enroll in if it is government-
account numbers. recognized, legitimate or accredited
Stolen Credit Card Numbers - There Online book scams - When buying
are numerous ways that scammers online, be sure to do it on a credible
can obtain your credit card information, site.
including hacking, phishing, and usage Credit Card Scams - Credit card
of skimming devices such as small companies go to school campuses to
card readers attached to unmanned convince students to fill out card
credit card readers. applications. Scammers may also grab
Identity Theft - Identity theft may this chance to steal students’
extend beyond unauthorized charges information. It is important to visit a
on a debit or credit card. Scammers local credit union or bank for credit
can obtain your Social security card application.
number, birth date, other personal
Insurance & Taxes
information, and are able to make new
accounts in your name without your Insurance is a contract (in the form of a
knowledge. policy) between policyholder & the insurance
company, whereby the company agrees to
10 tips to avoid financial scams
compensate for any financial loss from
1. Never wire money to a stranger. specific insured events.
2. Don’t give out financial information. - In exchange for financial protection
offered, policyholders agrees to pay a
3. Never click on hyperlinks in emails.
certain sum of money to the insurance
4. Use difficult passwords. company.

5. Never give your social security Concepts related to Insurance & taxes
number.
1. Employer-Sponsored Insurance –
6. Install Antivirus & Spyware the employer is required to provide
protection employee-only insurance that meets
minimum guidelines.
7. Don’t shop with unfamiliar online 2. Marketplace Plans – available based
retailers. on an area of residence & income
8. Don’t download software from pop- upon meeting minimum coverage
up windows. requirements. Comes in 3 tiers:
bronze, silver, gold.
9. Make sure the websites you visit are a. Bronze – offers the least
safe. coverage at the lowest
10. Donate to known charities only. premiums
b. Gold – provide the most
Financial Scams among Students coverage at the highest price.
Fake Scholarships - It is important to Life Insurance
become aware of related scams and
frauds. Students should check Is a type of insurance that compensates
scholarship sources before applying to beneficiaries upon the death of the
verify legitimacy. policyholder.
Diploma Mills - Schools that offer fake The company will guarantee a payout for the
degrees and diplomas in exchange for beneficiaries in exchange for premiums. This
a fee. Check from government compensation is called “death benefit”
education agencies the prospective
Common Risk Categories
 1. Preferred Plus - is in excellent health,
with normal weight, no history of
smoking, chronic illnesses, or family
history of any life-threatening disease.
2. Preferred - The policyholder is in
excellent health but may have minor
issues on cholesterol or blood
pressure but under control.
3. Standard Plus - The policyholder ls in
very good health but some factors, like
high blood pressure or being
overweight impede a better rating.
4. Standard - Most policyholders belong
to this category, as they are deemed to
be healthy and have a normal life
expectancy although, they may have a
family history of life-threatening
diseases or few minor health issues.
5. Substandard - Those with serious
health issues, like diabetes or heart
disease are placed on a table rating
system, ranked from highest to lowest.
On average, the premiums will be
similar to Standard with an additional
25% lower claim on table ratings.
6. Smokers – due to added risk of
smoking, the policyholders in this
category are guaranteed to pay more.
Aside from health class, age is alao a Financial Stability
critical factor in determining premiums. Confidence with the financial situation,
Therefore, older people pay more worriless in paying bills because of available
expensive premiums. funds, debt-free, money saving for future
Benefits of Life Insurance goals & enough emergency funds.

It pays for medical & funeral costs Living life w/out worrying about how to pay
For financial support the next bill, & becoming stress-free about
For funding various financial goals money.
Acts as a retirement secured conform 10 strategies in reaching financial stability
It covers costs incurred from taxes &
debt. 1. Make savings automagical – make
savings the top priority, especially
Types of Life Insurance emergency fund
2. Control your impulse spending –
control your impulsive spending on
eating out, shopping, etc.
3. Evaluate your expenses & live
frugally – analyze how you spend
your money, see what you can reduce
& determine expenses that are
necessary & eliminate unnecessary
 4. Invest in your future – start preparing Integrating Financial Literacy into the
& investing for future retirement Curriculum
5. Keep your family secure – save for
Financial education should be part of a
an emergency funds
collaborative national strategy to ensure
6. Eliminate & avoid debt
relevance & long-term sustainability.
7. Use envelop system – set aside three
amounts in your budget each payday Schools should develop a curriculum that
and put them in three separate would provide students insights on having the
envelops. value of financial literacy including the effect it
8. Pay bills immediately can bring them.
9. Read about personal finances –
educate yourself more.
10. Look to grow your net worth – do
whatever you can to improve your net
worth.
Signs of being financially stable
1. You never overdraw your checking
account.
2. You don't lose sleep over finances.
3. You use credit cards for convenience
and rewards but never out of
necessity.
4. You don't worry about losing your job.
5. You pay your bills ahead of time.
6. People ask your opinion about
financial matters and you inspire them.
7. You're generally happy with your
financial situation.
8. You finance your cars over five years
or less if you take loans at all.
9. You contribute more to your
retirement.
10. You don't feel guilty when you're out
for special occasions.
11. You can afford to buy the things you
really want.
12. Recreational spending doesn't appeal
to you.
13. You're a natural saver.
14. You're generous with money when it
comes to charities or helping others.
15. You're confident about your future.
16. Your net worth grows significantly from
year to year.
17. You have substantial equity in your
home.
18. You consistently live beneath your
means.
19. You could survive for months without a
paycheck.
20. You feel in control of your finances and
never dominated by them.