Building and Enhancing New Literacies Across the Curriculum

Module 8
FINANCIAL LITERACY
Learning Outcome:

1. define financial literacy;

2. distinguish among financial plan, budgeting, savings, spending and investing;
3. present ways on how to avoid financial crises and scams;
4. draw relevant life lessons and significant values from personal experience on financial crises and scams;
5. Make a personal financial plan based on short- term and long-term goals.

Concept Exploration

In some instances, teachers are confronted with issues and concerns on financial debt, being victimized by fraud
and other related scams, both personal and electronic ways. More so, some teachers are drowned by emergent
financial needs and unexpected debt, especially in difficult times, sickness and inevitable circumstances and
calamities. Others do not prepare for their retirement that they usually end up a subject in many faculty
developments programs, seminars, and even becomes a topic for researches, while many schools have
integrated it in the curriculum.

Financial Literacy

Financial literacy is a core life skill in an increasingly complex world where people need to take charge of
their own finances, budget, financial choices, managing risks, saving, credit, and financial transactions.

Poor financial decisions can have a long-lasting impact on individuals, their families and the society
cause by lack of financial literacy. Low levels of financial literacy are associated with lower standards of living,
decreased psychological and physical well- being and greater reliance ion government support. However, when
put into correct practice, financial literacy can strengthen savings behavior, eliminate maxed- out credit cards
and enhance timely debt.

Financial literacy is the ability to make informed judgments and make effective decisions regarding the
use and management of money. Hence, teaching financial literacy yield better financial management skills.

The importance of starting financial literacy while still young. National surveys show that young adults
have the lowest levels of financial literacy as reflected in their inability to choose the right financial products and
lack of interest in undertaking sound financial planning. Therefore, financial education should begin as early as
possible and be taught in schools. Akdag (2013) stressed that in the recent financial crisis, financial literacy is
very crucial and tends to be advantageous if introduced in the very6 early years as preschool years. Financial
education is a long -term process and incorporating it into the curricula from an early age allows children to
acquire the knowledge and skills while building responsible financial behavior throughout each stage of their
education (OECD, 2005).

Likewise, financial literacy is the capability of a person to handle his/ her assets, especially cash more
efficiently while understanding how money works in the real world.

Prepared by:
Lizette Ilao- Villaraza, MAEd, LPT
Instructor
Building and Enhancing New Literacies Across the Curriculum
Financial Plan

Teachers need to have a deeper understanding and capacity to formulate their own financial plan. It is
wise to plan the moment they hand in their first salary including the incentives, bonuses and extra
remunerations that they receive.

Kagan (2019) defines a financial plan as comprehensive statement of an individual’s long-term

objectives for security and well- being and detailed savings and investing strategy for achieving the objectives. It
begins with a thorough evaluation of the individual’s current financial state and future expectations.

The following are steps in creating a financial plan.

1. Calculating net worth. Net worth is the amount by which assets exceed liabilities. In so doing,
consider (1) assets that entail one’s cash, property, investments, savings, jewelry and wealth; and (2)
liabilities that include credit card debt, loans and mortgage. Formula: total assets- minus total
liabilities= current net worth.
2. Determining cash flow. A financial plan is knowing where money goes every month. Documenting it
will help to see how much is needed every month for necessities, and the amount for savings and
investment.
3. Considering the priorities. The core of a financial plan is the person’s clearly defined goals that may
include: (1) retirement strategy for accumulating retirement income;(2) Comprehensive risk
management plan including a review of life and disability insurance, personal liability coverage,
property and casualty coverage, and catastrophic coverage;( 3) Long-term investment objectives
and a personal risk tolerance profile; (4) tax reduction strategy for minimizing taxes on personal
income allowed by the tax code.( http://www.investopedia.com.terms/f/financial_plan.asp)

Five Financial Improvement Strategies

Financial literacy shapes the way people view and handle money. The following are financial
improvements suggested by Investopedia as a journey to financial literacy.

1. Identify your starting point. Calculating the net worth is the best way to determine both current financial
status and progress over time to avoid financial trouble by spending too much on wants and nothing enough
for the needs.
2. Set your priorities. Making a list of rated needs and wants can help set financial priorities. Needs are things
one must have in order to survive (i.e., food, shelter, clothing, healthcare and transportation); while are
things one would like to have but are not necessary for survival.
3. Document your spending. One of the best ways to figure out cash flow or what comes in and what goes out
is to create a budget or a personal spending plan. A budget lists down all income an expense to help meet
financial obligations.
4. Lay down your debt. Living with debt is costly not just because of interest and fees, but it can also prevent
people from getting ahead with their financial goals.
5. Secure your financial future. Retirement is an uncontrollable stage in a worker’s life, of which counterpart
are losing the job, suffering from an illness or injury, or be forced to care for a loved one that may lead to an
unplanned retirement. Therefore, knowing more about retirement options is an essential part of securing
financial future.

Prepared by:
Lizette Ilao- Villaraza, MAEd, LPT
Instructor
Building and Enhancing New Literacies Across the Curriculum

Financial Goal Planning and Setting

Setting goal is a very important part of life, especially in financial planning. Before investing the money,
consider setting personal financial goals. Financial goals are targets, usually driven by specific future financial
needs, such as saving for a comfortable retirement, sending children to college, or enabling a home purchase.

There are three key areas in setting investment goals for consideration.

A. Time horizon. It indicates the time when the money will be needed. To note, the longer the time
horizon, the riskier (and potentially more lucrative) investments can be made.
B. Risk tolerance. Investors may let go of the possibility of a large gain if they knew there was also a
possibility of a loss (they are called risk averse); while others are more willing to take the chance of a
large loss there were also a possibility of a large gain (they are called risk seekers). The time horizon can
affect risk tolerance.
C. Liquidity needs. Liquidity refers to how quickly an investment can be converted into cash (or the
equivalent of cash). The liquidity needs usually affect the type of chosen investment to meet the goals.
D. Investment goals: Growth, income and stability. Once determined the financial goals and how time
horizon, risk tolerance, and liquidity needs affect them, it is time to think about how investments may
help achieve those goals. When considering any investment goals: (1) Growth (also known as capital
appreciation) is an increase in the value of an investments; (2) Income, of which some investments
make periodic payments of interest or dividends that represent investment income and can be spent or
reinvested; and (3) Stability or known and capital preservation or protection of principal.
An investment that focuses on stability concentrates less on increasing the value of investment and
more on trying to ensure that it never loses value and can be taken when needed
(hhtp://www.flexscore.com/learningcenter/setting-financial-and investment-goals).

Budget and Budgeting

A budget is an estimation of revenue and expenses over a specified future period of time and is usually compiled
and re-evaluated on a periodic basis. Budgets can be made for a variety of individual or business needs or just about
anything else that makes and spends money. Budgeting, on the other hand, is the process of creating a plan to spend
money. Creating this spending plan allows one to determine in advance whether he/ she will have enough money to do
things he/ she needs or likes to do.

Thus, ensures to have enough money for the things needed and those important ones and will keep one out of
debt.

Step 1: Set realistic goals. Goals for the money will help make smart spending choices upon deciding on what
is important.

Step 2: Identify income and expenses. Upon knowing how much is earned each month and where it all goes,
start tracking the expenses by recording every single cent.

Step 3: Separate need from wants. Set clear priorities and the decisions become easier to make by identifying
wisely those that are really needed or just wanted.

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Lizette Ilao- Villaraza, MAEd, LPT
Instructor
Building and Enhancing New Literacies Across the Curriculum
Step 4: Design your budget. Make sure to avoid spending more than what is earned. Balance budget to
accommodate everything needed to be paid for.

Step 5. Put your plain into action. Match spending with income time. Decide ahead of time what you will use
each payday. Non-reliance to credit for the living expenses will protect one from debt.

Step 6: Plan for seasonal expense: Set money aside to pay for unplanned expenses so to avoid going into
debt.

Step 7: Look ahead: having a stable budget can take a month or two so. Ask help if things are not getting well.

Spending

If budget goals serve as a financial wish list, a spending plan is a way to make those wishes a reality. Turn them
into an action plan. The following are practical strategies in setting and prioritizing budget goals and spending plan:

1. Start by listing your goals. Setting budget goals requires forecasting and discussing future needs and dreams
with the family.
2. Divide your goals according to how long it will take to meet each goal. Classify your budget goals in three
categories: short-term goals (less than a year), medium-term goals (one to five goals (one to five years), and
long- term goals (more than five years). Short -term goals are usually the immediate needs and wants;
medium- term goals are things that you and your family want to achieve during the next five years; and
long- term goals extend well into the future, such as planning for retirement.
3. Estimate the cost of each goal and find out how much it costs. Before assigning priority to goals, it is
important to determine the cost of each goal. The greater the cost of a goal, the more alternative goals must
be sacrificed in order to achieve it.
4. Project future cost. For short- term goals, inflation is not a big factor, but for medium and long-term goals, it
is a big factor. To calculate the future cost of the goals, there is a need to determine the rate of inflation
applied to each particular goal.
5. Calculate how much you need to set aside each period. Upon knowing the future cost of the goals, next is
to determine how much to put aside each period to meet all the goals.
6. Prioritize your goal. Upon listing down all the goals and the estimated amount needed for each goal,
prioritize them. Serves as guide in decision-making.
7. Create a schedule for meeting your goals. It is important to lay down all the goals according to priority with
the corresponding amount of money needed, the time it will be needed, and the installments needed to
meet the goals.

Investment and Investing

As teachers, when you have saved more money that what you expect at a time of need, consider investing this
money to earn more interest than what your savings account is paying you. There are many ways you can invest
your money but consider four aspects:

1. How long will you invest the money? (Time Horizon)

2. How much money do you expect your investment to earn each year? (Expectation of return)
3. How much of your investment are you willing to lose in the short- term in order to earn more in the
long-term? (Risk Tolerance)

Prepared by:
Lizette Ilao- Villaraza, MAEd, LPT
Instructor
Building and Enhancing New Literacies Across the Curriculum
Savings

In order to get out of debt, it is important to set some money aside and put into a savings account on a regular
basis. Savings will also help in buying things that are needed or wanted without borrowing.

Emergency Savings Fund. Start as early, setting aside a little money for emergency savings fund. If you receive a
bonus from work, income tax refund or earnings from additional or side jobs, use them as an emergency funds.

10 Reasons Why Save Money

With credit so easy to get, here are ten practical reasons why it is important to save money that everyone,
including teachers, must know:

1. To become financially independent. Financial independence is not having to depend on receiving a certain
pay but setting aside an amount to have savings that can be relied on.
2. To save on everything you buy. With savings, you can buy things when they are on sale and can make better
spending choices without being compromised on credit card interest charges.
3. To buy a home or a car. Savings can be used in buying a home in full or down payment, especially in times of
promo deals, bids and inevitable sale and at a reasonable interest rate.
4. To prepare for the future. Through savings, you can be confident to face the future without worrying on
how will survive.
5. To get out of debt. If you want to get out of debt, you have to save money.
6. To augment annual expenses. In order to attain a good, stress-free financial life, there is a need to save for
annual expenses in advance.
7. To settle to unforeseen expenses. Savings can respond to unforeseen expenses in times of need.
8. To respond to emergencies. Emergencies may happen anytime and these can be expensive so, there is a
need to get prepared rather than potentially become another victim of an emergency.
9. To mitigate losing your job or getting hurt. Bad things can happen to anyone, such as losing a job, business
bankruptcy or crisis, being injured or becoming too sick to work. Therefore, having savings is the key to
resolve such a dilemma.
10. To have good life. Putting aside some money to spend when needed can bring about quality and worry-free
life at all times.

Common Financial Scams to Avoid

Financial fraud can happen to anyone, including the teachers at any time. When some forms of financial fraud,
such as massive date breaches, are out of one’s control, there are many ways to proactivity get rid of financial scams and
identity theft.

Here are some of the most common financial scams, along with ways to identify them early and howe to protect
one’s self from being victimized.

A. Phishing. Using this common tactic, scammers send an email that appears to come from a financial
institution, such as a bank and asks you to click on a link to update your account information. If you receive
any correspondence that asks for your information, never click on the links or provide account details.
Instead, visit the company’s website, find official contact information, and call them to verify the request.
B. Social Media Scams. Scammers are adept at using social media to gather information about the traveling
habits of potential victims. They also have phishing tactics, including posts seeking charity donations with
bogus links that allow them to keep your money. Therefore, be conscious of the information you post
online. Especially personal details and plans for a vacation that you would leave your house unoccupied.
Prepared by:
Lizette Ilao- Villaraza, MAEd, LPT
Instructor
Building and Enhancing New Literacies Across the Curriculum
C. Phone Scams. Another prevalent tactic is scamming phone calls. The scammers pose as a government
agency, such as the Bureau of Internal Revenue or local law enforcement agencies, and use scare tactics to
acquire your personal information and account numbers. Never provide your account information over the
phone. Look for the agency’s contact information, and call them to verify any request. To note, government
agencies will never text or call you to ask for money.
D. Stolen Credit Card Numbers. There are numerous ways that scammers can obtain your credit card
information, including hacking, p0hishing, and the use of skimming devices, such as small card readers
attached to unmanned credit card readers (i.e., ATM’s gas pumps and more). These small devices pull or
swipe your card, look for suspicious devices that may be attached to the card reader.
E. Identity Theft. Depending on the amount of information a scammer is able to obtain, identity theft may
extend beyond unauthorized charges on a debit or credit card. If scammers are able to obtain your Social
Security number, date of birth, and other personal information, they may be able to open new accounts in
your name without your knowledge. Be aware of an information you share and with whom, and always
shred sensitive information before disposing it.
By taking preventive measures and being aware of scams, you can minimize the risks of fraud.
Monitoring your online or mobile banking accounts daily can also help you see fraudulent charges.

10 Tips to Avoid Common Financial Scams

Every year, fraud cases are getting worse, leaving countless victims in trouble and danger through data
breaches, identity theft and online scams. Unfortunately, new and improved technology only gives fraudsters and edge,
making it easier than ever for scam artists to nab financial data from unsuspecting consumers (Bell, 2019).

1. Never wire money to a stranger. Although it is one of the oldest Internet scams, there are still consumers
who fall for this rip-off some variations of it.
2. Don’t give out financial information. Never reveal sensitive personal financial information to a person or
business you don’t know, thru phone, text or email.
3. Never click on hyperlinks in emails. If you receive an email from a stranger or company asking you to click
on a hyperlink or open an attachment and then, enter your financial information, delete the email
immediately.
4. Use difficult passwords. Hackers can easily find passwords that are simple number combinations. Create
passwords that are at least eight characters long and that include some lower- and upper-case letter,
numbers and special characters. You should also use a different password for every website you visit.
5. Never give your Social Security number. If you receive an email or visit a website that asks for your Social
Security number, ignore it.
6. Install Antivirus and Spyware Protection. Protect the sensitive information stored on your computer by
installing antivirus, firewall and spyware protection. Once you install the program, turn on the auto-updating
feature to make sure the software is always up-to-date.
7. Don’t shop with unfamiliar online retailers. When it comes to online shopping, only do business with
familiar companies. When purchasing a product from an unfamiliar retailer, do some research to ensure the
business is legit and reputable.
8. Don’t download software from pop-up windows. When you are online, do no trust pop-up windows that
appear and claim your computer is unsafe. If you click on the link in the pop-up to start the” system scan” or
some other programs, malicious software known as “malware” could damage your operating system.
9. Make sure websites you visit are safe. Before you enter your financial information on any website, double-
check the websites’ privacy rules. Also, make sure the website uses encryption, which is usually symbolized
by a lock to the left of the web address which means it is safe and protected against hackers.
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Lizette Ilao- Villaraza, MAEd, LPT
Instructor
Building and Enhancing New Literacies Across the Curriculum
10. Donate to known charities only. If you receive a call or an email for solicitation of charity donations,
critically examine it. Some scammers create bogus charities to steal credit card information.

Financial Scams among Students. Students can also be susceptible to different financial scams and fraud. Learning
how to manage finances and being aware of financial scams are skills that every student master.

The following are common financial scams that students should watch out for, and learn to protect one’s identity
and finances.

A. Fake scholarships. While it is beneficial for students to apply for as many scholarships, it is important to become
aware of related scams and frauds. Students should thoroughly check scholarship sources before applying to
verify legitimacy. Never apply for a scholarship that asks for money in return.
B. Diploma mills. There are schools that offer fake degrees and diplomas in exchange for a fee. Check from
government education agencies the prospective school to enroll in if it is government-recognized, legitimate or
accredited.
C. Online book scams. While, students often go for the best deals on textbooks online, scammers can use this
opportunity to get students’ credit card information. When buying anything online, be sure to do it on a credible
site.
D. Credit card scams. Oftentimes, credit card companies go to school campuses to convince students to fill out card
applications. Scammers may also grab this chance to steal student’s information. It is important to visit a local
credit union or bank for credit card application. Also, regularly check the credit card statement and once there
are any unrecognized charges, contact your banking institution immediately.

Insurance and Taxes

Insurance is a contract (in the form of a policy) between the policy holder and the insurance company, whereby
the company agrees to compensate for any financial loss from specific insured events. In exchange for the financial
protection offered, policyholder agrees to pay a certain sum of money, known as premiums to the insurance company.
Insurance is the best form of risk management against uncertain loss.

There are various types of insurance to choose from, such as life insurance, health insurance, motor insurance,
property insurance, motor insurance, property insurance, business insurance, etc. Besides, the financial protection
derived from insurance entails tax benefit claim on the paid premiums.

The following are concepts related to insurance and taxes that every teacher should know. However, he/ she
should carefully analyze and critically examine well before pursuing any deal with them.

1. Employer- Sponsored Insurance. If working in a company with 540 or more full-time employees, the
employer is required to provide employee-only insurance that meets minimum guidelines. Examine the plan
offered, but do not pay over 9.66% of household income in premiums.
2. Marketplace Plans. Marketplace plans are available based on an area of residence and income upon
meeting minimum coverage requirements. Marketplace plans come in three tiers: bronze, silver and gold.
Generally, bronze plans offer the least coverage at the lowest premiums, while gold plans provide the most
coverage at the highest price.

Life insurance. Life insurance is a type of insurance that compensates beneficiaries upon the death of the policyholder.
The company will guarantee a payout for the beneficiaries in exchange of premiums. This compensation is called” death
benefit”.

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Lizette Ilao- Villaraza, MAEd, LPT
Instructor
Building and Enhancing New Literacies Across the Curriculum
Depending on the type of insurance one may have, these events can be anything from retirement, to major
injuries, to critical illness or even to death.

The ff. are common risk categories:

1. Preferred Plus- The policyholder is in excellent health, with normal weight, no history of smoking, chronic
illness, 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 is in very good health but some factors, like high blood pressure or being
overweight impede a better rating.
4. Standard- Most policy holders 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 disease 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 an added risk of smoking, the policyholders in this category are guaranteed top pay more.
Aside from health class, age is also a critical factor in determining premiums. Therefore, older people pay
more expensive premiums.

Benefits of Life Insurance

The ff. are the benefits of life insurance.

1. It pays for medical and funeral costs. Life insurance helps solve the incurred expenses for medical and
funeral services to lessen the grief among family and relatives for being unprepared.
2. For financial support. Life insurance can become a source of temporary income during the difficult period of
adjusting and coping with the loss of a loved one, especially if he/ she is the breadwinner.
3. Fore funding various financial goals. Life insurance offers additional benefits through the form of fund
accumulation for specific future financial goals.
4. Acts as a retirement secured conform. Modern life insurance also serves as a tool that principal holders can
use to get in a better financial position in the future.
5. It covers costs incurred from taxes and debt. Life insurance can serve as protection since the premium can
be used to pay for unsettled debts and taxes.

Types of Life Insurance

The table shows a comparative analysis of different types of life insurance along characteristics, advantages and
disadvantages that may serve as a reference.

Type Characteristics Advantage Disadvantage

1.Endowment It grants a lump sum after a It allows for saving up for It requires higher premium
specified amount of time or specific purposes. than other types of life
upon death. The policy It guarantees returns upon insurance.
owner is required to pay maturity. It is not the best option for
the premium for a It offers some form of those looking at full life
predetermined number of insurance coverage. protection.
years or until a specific age
is reached.
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Lizette Ilao- Villaraza, MAEd, LPT
Instructor
Building and Enhancing New Literacies Across the Curriculum
2.Term It is the simplest form of It entails low premium It has no benefit if
life insurance to obtain, of requirements. policyholder outlives the
which upon death, the It is a strong option for term period set.
beneficiaries are paid with policyholders who need Premium usually gets
the benefit. insurance but cannot higher upon renewal of
afford whole life or terms.
endowment.
It is easy to understand.
3.Whole Life It provides coverage for the It offers permanent It requires higher
policyholder’s entire life or protection for the full life premiums.
until they reach 100years or 100 years. It is difficult to understand
old. It acts both as It is flexible in terms of due to complexity.
protection and savings payments of premiums.
mechanisms since a It entails fixed premiums.
portion of the premium is It usually comes with
allocated to build cash additional features and
values. “living” benefits.
4.Variable Universal Life It serves as both life It takes dual purpose: Life Cash values and dividends
(VUL) protection and investment insurance plus investment are not guaranteed.
vehicle in one package. A tool. Face amount and death
portion of the premium is It has no maturity age. benefit are dependent on
allocated into various The cash value is payable investment performance.
investment vehicles for the along with the assured It includes various
purposes of wealth sum. investment fees.
creation. The contract’s The death component is
earnings are based on the not limited to face value.
performance of selected It depicts liquidity, wherein
investments. funds can be accessed in
times of need and can
serve as emergency funds.

Financial Stability

Like anyone else, teachers also aim to become financially stable if not today, maybe in the future. Being
financially stable means confidence with the financial situation, worriless paying the bills because of available funds,
debt-free, money savings for future goals and enough emergency funds.

Financial stability is not being rich but rather more to a mindset. It is living a life without worrying about how to
pay the next bill, and becoming stress-free about money while focusing energy on other parts of life (Silva, 2019).

10 Strategies in Reaching Financial Stability

Just like any goal, getting the finance stable and becoming financially successful requires the development of
good financial hjabits. Babauta (2007) suggest 10 habits towards financial stability and success.

Prepared by:
Lizette Ilao- Villaraza, MAEd, LPT
Instructor
Building and Enhancing New Literacies Across the Curriculum
1. Make savings automagical. Savings should be made a top priority, especially as an emergency fund and a
bill payment from the amount are automatically transferred from the checking account, like an online
savings account.
2. Control your impulsive spending. Control your self from impulsive spending on eating out, shopping and
online purchases that may ruin your finances and budget.
3. Evaluate your expenses and live frugally. Analyze how you spend your money, see what you can reduce and
determine expenses that are necessary and eliminate the unnecessary.
4. Invest in your future. Start preparing and investing for your future retirement while still young in your
career field.
5. Keep your family secure. Eliminate credit cards, personal loans, of other debts forms as it will not work on
you but even pull you down and make you drowned with obligations that may even resort to surrendering
your properties, jewelry and investments as payment.
6. Use the envelope system. Set aside three amounts in your budget each payday, withdraw those amounts
and put them in three separate envelopes. In that way, you can easily track how much remains for each of
the expenses or if you already run out of money.
7. Pay bills immediately. One good habit is pay bill as soon as they co]me in and try to get your bills to be paid
through automatic deduction.
8. Eliminate and avoid debt. Save for an emergency fund, so that you have something to spend if anything
happens with the family emergency.
9. Read about personal finances. The more you educate yourself, the better your finances will be.
10. Look to grow your net worth. Do whatever you can to improve your net worth, either by reducing your
debt, increasing your savings, or increasing your income, or all the above.

Signs of Being Financially Stable

Teachers, like any one else, often work to the extent to earn more even through additional jobs on the side just
for their desire for financial stability.

Rose (2019) presents some signs of a financially stable person.

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 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 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.
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Instructor
Building and Enhancing New Literacies Across the Curriculum
19. You could survive for months without a paycheck.
20. You feel in control of your finances and never dominated by them.

Integrating Financial Literacy into the Curriculum.

Financial education in schools should be part of a collaborative national strategy to ensure relevance and long-
term sustainability. The education system and profession should be involved in the development of the strategy.

In support, Barry (2013) underscored that financial literacy has a wide repercussion outside the family circle and
more precisely, the school. Hence, administrators and professors need to develop a curriculum that would provide
students insights on having the value of financial literacy including the effect it can bring them.

Moreover, these should be a learning frame work, which sets out goals, learning outcomes, content, pedagogical
approaches, resources and evaluation plans. The content should cover knowledge, skills, attitudes and values. A
sustainable source of funding should be identified at the outset.

Financial education should ideally be a core part of the school curriculum. It can be integrated into other
subjects like mathematics, economics, social studies, technology and home economics, values education and others.
Financial education can give a range of “real-life” context across a range of subjects.

Teachers should be adequately trained and resourced, made aware of the importance of financial literacy and
relevant pedagogical methods and they should receive continuous support to teach it or integrate in their lesson. More
so, there should be easily accessible, objective, high-quality and effective learning tools and pedagogical resources
available to schools and teachers that are appropriate to the level of study. Students’ progress should also be assessed
through various high impact modes.

Evaluating
Myself

I. Make a semi-detailed lesson plan on how you will integrate financial literacy in the curriculum.
II. Learning Reflection:

Budgetting Spending Investing Saving

Why: Why: Why: Why:

How: How: How: How:

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Lizette Ilao- Villaraza, MAEd, LPT
Instructor