MODULE 8:
FINANCIAL LITERACY
LEARNING OUTCOMES:
1. Define financial literacy
2. Distinguish among financial plan, budgeting, saving, spending and investing.
[Link] ways on how to avoid financial crisis and scams
4. Demonstrate understanding of insurance and taxes.
5. Describe a financially stable person.
6. Determine ways on how to integrate financial literacy in the curriculum.
7. Draw relevant life lessons and significant values from personal experiences on financial crises
and scams.
8. Analyze research abstract on financial literacy and its implications to the teaching-learning
process.
9. Make a personal financial plan based on short-term and long-term goals.
INTERACTIVE PRESENTATION
Deal or No Deal. This is an interactive activity adapted from a TV game show segment
which entails a student to pick any of the briefcases containing an amount and he/she then, takes
deal or no deal with the banker's offer against the amount in the last briefcase.
Procedure:
1. The teacher will choose 10 students who will prepare different amounts written in 10 folders
that will serve as briefcases.
2. During the game, the class will choose a player.
3. While playing the "Deal or, No Deal with background music downloaded from the Internet,
the player will choose the briefcase to be opened to see the amount.
4. The selection of briefcases to be opened shall continue until only the last three remain.
5. Then, the teacher will say, "The banker has an offer".
6. There will be bidding of amount offered by the banker in lieu of opening the remaining
briefcases by the player.
7. The last briefcase will be opened and find out if the banker's offer is higher than the amount in
the chosen last briefcase.
8. There shall be a reflection in the class by asking "What will you do if banker will offer an
amount or money. The teacher will generate answers from the students.
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 highly frustrated. This is the reason why financial
literacy has been a subject in many faculty development programs, seminar 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 caused 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 on 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 yields
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 very
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.
Financial Plan
Teachers need to have a deeper understanding and capacity to formulate their own
financial plan. It is wise to consider starting to plan the moment they hand in their first salary,
including incentives, bonuses and extra remunerations that they receive.
Kagan (2019) defines a financial plan as a comprehensive statement of an
individual's long-term 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 including a review of life and disability insurance, personal liability
coverage, property and casualty coverage, and catastrophic coverage; (3) Long-term investment
plan based on specific investment objectives and a personal risk tolerance profile; and (4) Tax
reduction strategy for minimizing taxes on personal income allowed by the tax code.
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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, health care and
transportation); while wants are things one would like to have but are not necessary for survival.
3. Document your spending. One of the best ways to figure cash flow or what comes in and
what goes out is to create budget or a personal spending plan. A budget lists down income and
expenses to help meet financial obligations.
4. Lay down your debt. Living with debt is costly not 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 securing financial future.
Financial Goal Planning and Setting
Setting goals 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 more risky (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 large loss (they are called risk averse) willing to take the chance of a large
loss if 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 averse): while others are more
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, think about what it
offers in terms of three key investment goals: (1) Growth (also known as capital appreciation)
is an increase in the value of an investment; (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 as capital preservation or protection of
principal.
An investment that focuses on stability concentrate less on increasing the value of
investment and more on trying to ensure that it never loses value and can be taken when needed.
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Budget and Budgeting
A budget is an estimation of revenue and expenses over specified future period of time
and is usually compiled and reevaluated on a periodic basis. Budgets can be made for a variety
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
the things he/she needs or likes to do. Thus, budgeting ensures to have enough money for the
things needed and those important ones and will keep one out of debt.
Seven Steps to Good Budgeting
The following are seven steps that may help in attaining good budgeting.
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 needs from wants. Set clear priorities and the decisions become easier to
make by identifying wisely those that are really needed or just wanted.
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 plan 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 expenses. 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 for 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 into three categories: short-term goals (less than a year), medium-term 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 goals. Upon listing down all the goals and the estimated amount needed for
each goal, prioritize them. This 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. ([Link]
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Investment and Investing
As teachers, when you have saved more money than 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)
4. What types of investment interest you? (Investment Type)
Savings
In order to get out of debt, it is important to set some money aside and put it 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, an income tax refund or earnings from
additional or side jobs, use them as an emergency fund.
10 Reasons Why Save Money
With credit so easy to get, here are ten practical reasons why 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 you 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 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 a 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. While some
forms of financial fraud, such as massive data breaches, are out of one's control, there are many
ways to proactively get rid of financial scams and identity theft.
Here are some of the most common financial scams, along with ways to identity them
early and how 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 a bank and asks you to click on a link to update your account
information. If you receive any correspondence that asks 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.
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, phishing, and the use of skimming devices, such as
small card readers attached to unmanned credit card readers (i.e. ATMs, gas pumps, and more).
These small devices pull data from your card when you swipe it. Before you use an ATM or
swipe your card, look for suspicious devices that may be attached to the card reader.
E. Identify 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 preventative measures and being aware of scams, you can minimize the risks
of fraud. Monitoring your online or [Link] accounts daily can also help you see
fraudulent charges quickly. ([Link]
Hardship/Disaster-recovery/common-financial-scams-to-avoid)
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 an 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 or some variations of it.
2. Don’t give you 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 form 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 includes
some lower and uppercase letters, 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 not 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 scam” or some other programs, malicious software
known as “malware” could damage your operating system.
9. Make sure the websites you visit are safe. Before you enter your financial information
on any website, double-check the website’s 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.
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.
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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 should 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 of a
fee. Check from government education agencies the prospective school to enroll in if it is
government-recognized, legitimate and accredited.
C. Online Book scams. While students can 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
students’ information. It is very 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. ([Link]
scam-safety)
INSURANCE AND TAXES
Insurance is a contract (in the form of a policy) between the policyholder 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, 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 50 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 percent 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”.
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 following are common risk categories:
1. Preferred Plus – The policyholder 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 is 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 an added risk of smoking, the policyholders in this category are
guaranteed to 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 following 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 q 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. For funding various financial goals. Life insurance offers additional benefits through the form
of fun 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 below shows a comparative analysis of different types of life insurance along
characteristics, advantages and disadvantages that may serve as a reference.
Type Characteristic Advantage Disadvantage
1. Endowment It grants a lump sum It allows for saving up It requires higher
after a specified for specific purposes. premiums than other
amount of time or types of life insurance.
upon death. The It guarantees returns
policy owner is upon maturity. It is not the best
required to pay the option for those
premium for a It offers some form of looking at full life
predetermined insurance coverage. protection.
number of years or
until a specific age is
reached.
2. Term It is the simplest form It entails low It has no benefit if
of life insurance to premium policyholder outlives
obtain, of which upon requirements. the term period set.
death, the
beneficiaries are paid It is a strong option Premium usually gets
with the benefit. for policyholders who higher upon renewal
need insurance but of terms.
cannot afford whole
life or endowment.
It is easy to
understand.
3. Whole Life It provides coverage It offers permanent It requires higher
for the policyholder’s protection for full life premiums.
entire life or until they or 100 years.
reach 100 years old. It It is difficult to
acts both as protection It is flexible in terms understand due to
and savings of payments of complexity.
mechanisms since a premiums.
portion of the
premium is allocated It entails fixed
to build up cash premiums.
values.
It usually comes with
additional features
and “living” benefits.
4. Variable Universal It serves as both life It takes dual purpose: Cash values and
Life (VUL) protection and Life insurance plus dividends are not
investment vehicle in investment tool. guaranteed.
one package. A
portion of the It has no maturity age. Face amount and
premium is allocated death benefit are
into various The cash value is dependent on
investment vehicles payable along with investment
for the purposes of the assured sum. performance.
wealth creation. The
contract’s earnings are The death component It includes various
based on the is not limited to face investment fees.
performance of value.
selected investments.
It depicts liquidity,
where in funs 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 about being rich but rather more of 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 finances stable and becoming financially successful
requires the development of good financial habits. Babauta (2007) suggests 10 habits toward
financial stability and success.
1. Make savings automagical. Savings should be made a top priority, especially as an
emergency fun and a bill payment from the amount are automatically transferred from the
checking account, like an online saving account.
2. Control your impulsive spending. Control yourself 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. Save for an emergency fund, so that you have something to spend
if anything happens with the family emergently.
6. Eliminate and avoid debt. Eliminate credit cards, personal loans, or other debt forms as it
will not work on you but even put you down and make you drowned with obligations that may
even resort to surrendering your properties, jewelry and investments as payment.
7. 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.
8. Pay bills immediately. One good habit is to pay bills as soon as they come in and try to get
your bills to be paid through automatic deduction.
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 network, either by
reducing your debt, increasing your savings, or increasing your income, or all of the above.
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Signs of Being Financially Stable
Teachers, like anyone 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 card 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.
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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, there should be a learning framework, 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’
contexts 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.
