North Central Mindanao College
North Central Mindanao College
COLLEGE OF EDUCATION
BUILDING AND ENHANCING NEW LITERACIES ACROSS THE CURRICULUM
TOPIC
FINANCIAL LITERACY
DISCUSSION
Finanncial literacy means the ability to read, analyze, manage, and communicate about the
personal financial conditions that affect material well-being. It includes the ability to discern
finanacial choices, discuss money and financial issues without or despite discomfort, plan for the
future, and respond competently to life events that affect everyday financial decisions, including
events in the general economy. – National Endowment for Financial Eduication
Or simply, it is the ability to use knowledge and skills to manage one’s financial resources
effectively for lifetime financial security”
Why is it important for the public and private institutions to recognize the need for financial
literacy?
The Effects of
MODULE 4
Here the summarized standards and key concepts:
Financial literacy enables people to understand and apply knowledge and skills to achieve a
lifestyle that is financially balanced, sustainable, ethical, and responsible. Increased of personal
financial literacy affects one’s financial behavior.
Financial literacy does not totally eliminate the need for social safety net because even the
most prudent individual can encounter financial difficulties. Being financial literate create
proper decision-making skills and discipline in managing financial matters.
One’s attitude about money is heavily influenced by the parent’s attitude and behavior about
money. The attitudes you formed early in life probably affect how you save, spend, and invest
today.
There are six major characteristic types in how people view money (Incharge,2017)
FRUGAL: they seek financial security by living below their means and saving money
PLEASURE: they use money to bring pleasure to themselves and to others. More likely to
spend than save.
STATUS: some people use money to express their social status, purchase and “show off”
INDIFFERENCE: some people place very little importance on having money and would
rather grow their own food and craft their own clothes. Having too much money make
them nervous and uncomfortable.
POWERFUL: powerful people use money to express power or control over others
SELF-WORTH: people spend money for self-worth value how much they accumulate and
tend to judge others based on the amount of money they have
SPENDING PATTERNS
Before one can come up with a financial plan, one needs to analyze his/her spending habits.
There are two common spending patterns:
Habitual spending – one spends out of habit, when one buys the same item daily, weekly, or
monthly
Impulsive spending – one mindlessly purchases items that he or she does not need. Monthly sales
at the malls or etc, thinking they might lose the items the following day or not be able to purchase
it anymore
List down all expense that belong to the needs and those that belong to the wants.
Needs Wants
IMPORTANCE OF SAVING
o Retirement – you need savings/investments to take the place of income you will no
longer receive when you retire
o Future Events – for future events like weddings, birthdays, anniversaries, and travels so as
not to sacrifice your fixed expenses
o Instability of Social Security – pensions from social security should only serve as
supplementary and not the primary source of income after retirement
You can either save before you spend or save after you spend wisely.
1. Commit to a month;
2. Find an accountability partner;
3. Find savings role model who is successful with his/her money, through tried-and-true savings;
4. Write your goal and track it; and
5. Avoid tempting situations (hang-out to the mall, online selling)
MODULE 4
Performance Task
Choose 2 performance tasks only:
Long-term:
____________________________
➢ Interview a friend, or family member (take a picture only of you and the interviewee)
➢ Ask how they spend and save money (discover their behavior, be creative when asking
questions, it should not limit to a yes or no answer)
➢ Choose any of the following forms: inforgraphic/ cartoon in presenting your output
3. Whatcha say?
➢ VIDEO
➢ Create a funny or comical presentation about the different types of reaction toward
a SALE advertisement. What would each type of person would likely say or react?
FRUGAL
PLEASURE
STATUS
INDEFFERENCE
POWERFUL
SELF-WORTH
Prepared by:
Isabelle L. Paiso, LPT