MODULE 8

FINANCIAL LITERACY
LEARNING OUTCOMES
1. Describe a financially stable
person:
2. Make a personal financial plan
based on short-term and long term
goals; and
3. Discuss the ways on how to avoid
financial crises and scam.
CONCEPT EXPLORATION
Teachers often face financial debt, fraud, and
unexpected expenses, especially during
difficult times. Financial literacy is a crucial
subject in faculty development programs,
seminars, and research, and is often
incorporated into the curriculum in schools.
FINANCIAL LITERACY
Financial literacy is crucial in today's complex world,
enabling individuals to manage their finances, budget,
and transactions. Low levels can lead to lower living
standards, decreased well-being, and increased
government support. However, when practiced
correctly, it can strengthen savings behavior,
eliminate credit card debt, and improve financial
management skills.
The importance of starting financial literacy while still young.

National surveys reveal low financial literacy among young adults,

indicating the need for early financial education in schools to help
them make informed financial decisions.Akdag (2013).
Financial literacy is crucial in the recent financial crisis, especially in
preschool years. Early financial education builds responsible behavior
throughout education.(OECD,2005).
FINANCIAL PLAN

Teachers should develop a comprehensive

financial plan, including incentives, bonuses, and
extra remunerations, from the moment they
receive their salary. This plan should include a
detailed savings and investing strategy, evaluating
their 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 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.
FIVE FINANCIAL IMPROVEMENT
STRATEGIES
SHAPES THE WAY PEOPLE VIEW AND HANDLE
MONEY.THE FOLLOWING ARE FINANCIAL
IMPROVEMENTS SUGGESTED BY INVESTOPEDIA
AS A FINANCIAL LITERACY SHAPES THE WAY
PEOPLE VIEW AND HANDLE MONEY.THE
FOLLOWING ARE FINANCIAL IMPROVEMENTS
SUGGESTED BY INVESTOPEDIA AS A JOURNEY TO
FINANCIAL LITERACY. TO FINANCIAL LITERACY.
FIVE FINANCIAL IMPROVEMENT
STRATEGIES
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.JOURNEY TO FINANCIAL LITERACY. TO
FINANCIAL LITERACY.
FIVE FINANCIAL IMPROVEMENT
STRATEGIES
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 WANTS ARE THINGS
ONE WOULD LIKE TO HAVE BUT ARE NOT
NECESSARY SURVIVAL.
FIVE FINANCIAL IMPROVEMENT
STRATEGIES

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 AND EXPENSES
TO HELP MEET FINANCIAL OBLIGATIONS.
FIVE FINANCIAL IMPROVEMENT
STRATEGIES

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.
FIVE FINANCIAL IMPROVEMENT
STRATEGIES
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.
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.
FINANCIAL GOAL PLANNING AND SETTING

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.
FINANCIAL GOAL PLANNING AND SETTING

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); WHILE OTHERS
ARE MORE 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.
FINANCIAL GOAL PLANNING AND SETTING

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: TO ACHIEVE FINANCIAL GOALS,
CONSIDER INVESTMENTS THAT OFFER GROWTH,
INCOME, AND STABILITY. GROWTH INCREASES AN
INVESTMENT'S VALUE, WHILE INCOME CAN BE
REINVESTED THROUGH INTEREST OR DIVIDENDS.
STABILITY PROTECTS THE PRINCIPAL AND
PRESERVES CAPITAL. UNDERSTANDING THESE
GOALS AIDS IN MAKING INFORMED DECISIONS
ABOUT INVESTMENTS AND THEIR POTENTIAL
IMPACT ON FINANCIAL SUCCESS.
BUDGET AND BUDGETING
A BUDGET IS A FINANCIAL PLAN THAT ESTIMATES
REVENUE AND EXPENSES FOR A SPECIFIC TIME
FRAME, TYPICALLY COMPILED AND RE-
EVALUATED PERIODICALLY. IT CAN BE USED FOR
VARIOUS NEEDS, INCLUDING PERSONAL OR
BUSINESS FINANCES. BUDGETING, ON THE OTHER
HAND, INVOLVES CREATING A SPENDING PLAN TO
DETERMINE IF ONE WILL HAVE ENOUGH MONEY
TO COVER THEIR NEEDS OR INTERESTS.
SEVEN STEPS TO 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.
SEVEN STEPS TO GOOD BUDGETING
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
SEVEN STEPS TO GOOD BUDGETING

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.
SEVEN STEPS TO GOOD BUDGETING

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.BUDGET
GOALS CAN BE CATEGORIZED INTO SHORT-TERM
(LESS THAN A YEAR), MEDIUM-TERM (ONE TO FIVE
YEARS), AND LONG-TERM (MORE THAN FIVE
YEARS).
3. ESTIMATE THE COST OF EACH GOAL AND FIND OUT
HOW MUCH IT COSTS. PRIORITIZING GOALS
REQUIRES DETERMINING THEIR COST, AS HIGHER
COSTS NECESSITATE THE SACRIFICE OF ALTERNATIVE
GOALS TO ACHIEVE THEM.
4. PROJECT FUTURE COST. INFLATION IS A
SIGNIFICANT FACTOR FOR MEDIUM AND LONG-TERM
GOALS, AND DETERMINING THE RATE OF INFLATION
APPLIED TO EACH GOAL IS NECESSARY TO CALCULATE
THE FUTURE COST OF THESE OBJECTIVES.
5. CALCULATE HOW MUCH YOU NEED TO SET
ASIDE EACH PERIOD. THE NEXT STEP IS TO
DETERMINE THE AMOUNT TO BE SET ASIDE EACH
PERIOD TO ACHIEVE ALL THE GOALS.
6. PRIORITIZE YOUR GOALS. PRIORITIZING GOALS
BASED ON ESTIMATED AMOUNTS IS CRUCIAL FOR
EFFECTIVE 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 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
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 ME 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 BECONFIDENT TO FACE THE
FUTURE WITHOUT WORRYING ON HOW YOU WILL
SURVIVE.
5.TO GETS 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 EMERGE
NCY.
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 AFFECT ANYONE,

INCLUDING TEACHERS. IDENTIFYING COMMON
SCAMS, IDENTIFYING THEM EARLY, AND
PROTECTING ONESELF FROM BEING VICTIMIZED
ARE CRUCIAL STEPS TO PROACTIVELY COMBAT
SCAMS AND IDENTITY THEFT.
COMMON FINANCIAL SCAMS TO AVOID

A. PHISHING. SCAMMERS SEND EMAILS CLAIMING

TO BE FROM FINANCIAL INSTITUTIONS, ASKING
FOR ACCOUNT DETAILS. NEVER CLICK ON LINKS
OR PROVIDE DETAILS; VISIT COMPANY'S WEBSITE,
FIND OFFICIAL CONTACT INFORMATION, AND
CALL TO VERIFY.
COMMON FINANCIAL SCAMS TO AVOID

B. SOCIAL MEDIA SCAMS. SCAMMERS USE

SOCIAL MEDIA TO GATHER INFORMATION ABOUT
VICTIMS' TRAVEL HABITS AND USE PHISHING
TACTICS TO STEAL MONEY. BE CAUTIOUS OF
PERSONAL DETAILS AND VACATION PLANS.
COMMON FINANCIAL SCAMS TO AVOID

C. PHONE SCAMS. SCAMMERS OFTEN USE

PHONE CALLS TO TRICK INDIVIDUALS INTO
PROVIDING PERSONAL INFORMATION AND
ACCOUNT NUMBERS, POSING AS GOVERNMENT
AGENCIES. IT'S CRUCIAL TO VERIFY ANY
REQUESTS AND AVOID TEXTING OR PHONE CALLS
FOR MONEY.
COMMON FINANCIAL SCAMS TO AVOID

D. STOLEN CREDIT CARD NUMBERS. SCAMMERS

CAN STEAL CREDIT CARD INFORMATION
THROUGH HACKING, PHISHING, AND SKIMMING
DEVICES. BEFORE USING ATMS OR SWIPING YOUR
CARD, LOOK FOR SUSPICIOUS DEVICES ATTACHED
TO CARD READERS.
COMMON FINANCIAL SCAMS TO AVOID

E. IDENTITY THEFT. IDENTITY THEFT CAN GO

BEYOND UNAUTHORIZED DEBIT OR CREDIT CARD
CHARGES, AS SCAMMERS CAN OBTAIN PERSONAL
INFORMATION LIKE SOCIAL SECURITY AND BIRTH
DATE, OPENING NEW ACCOUNTS WITHOUT YOUR
KNOWLEDGE.
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 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 REQUESTING YOU TO ENTER YOUR
21ST AND 0FINANCIAL INFORMATION, DELETE
THE EMAIL IMMEDIATELY.
4. USE DIFFICULT PASSWORDS. HACKERS EASILY
FIND SIMPLE PASSWORD COMBINATIONS, SO
CREATE LONG, VARIED PASSWORDS WITH UPPER
AND LOWER CASE LETTERS, NUMBERS, AND
SPECIAL CHARACTERS, AND USE DIFFERENT
PASSWORDS FOR EACH WEBSITE.
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.
INSTALL ANTIVIRUS, FIREWALL, AND SPYWARE
PROTECTION ON YOUR COMPUTER TO
SAFEGUARD SENSITIVE DATA AND ENSURE
SOFTWARE IS ALWAYS UP-TO-DATE.
7. DON'T SHOP WITH UNFAMILIAR ONLINE
RETAILERS. WHEN SHOPPING ONLINE, ONLY SHOP
WITH REPUTABLE COMPANIES AND CONDUCT
THOROUGH RESEARCH BEFORE PURCHASING FROM
UNFAMILIAR RETAILERS.
8. DON'T DOWNLOAD SOFTWARE FROM POP-UP
WINDOWS. TRUST POP-UP WINDOWS THAT CLAIM
YOUR COMPUTER IS UNSAFE; CLICKING ON LINKS
TO START A SYSTEM SCAN OR OTHER PROGRAMS
COULD DAMAGE YOUR OPERATING SYSTEM.
9. MAKE SURE THE WEBSITES YOU VISIT ARE SAFE.
BEFORE REVEALING YOUR FINANCIAL INFORMATION
ON A WEBSITE, ENSURE IT FOLLOWS PRIVACY RULES
AND USES ENCRYPTION, A SECURE METHOD TO
PROTECT AGAINST HACKERS.
10. DONATE TO KNOWN CHARITIES ONLY. SCAMMERS
OFTEN CREATE BOGUS CHARITIES TO STEAL CREDIT
CARD INFORMATION, SO IT'S CRUCIAL TO BE
CAUTIOUS WHEN RECEIVING A SOLICITATION FOR
CHARITY DONATIONS VIA EMAIL OR CALI.
FINANCIAL SCAMS AMONG STUDENTS.

Students should master financial management

skills and be aware of common scams to
protect their identity and finances.
A. FAKE SCHOLARSHIPS. STUDENTS SHOULD BE
CAUTIOUS OF SCAMS AND FRAUDS WHEN APPLYING
FOR SCHOLARSHIPS, ENSURING THEY VERIFY THE
LEGITIMACY OF THEIR SOURCES AND AVOID
APPLYING FOR ONES THAT REQUIRE FINANCIAL
RETURN.
B. DIPLOMA MILLS. FAKE DEGREES AND DIPLOMAS
ARE OFTEN OFFERED BY SCHOOLS, SO IT'S CRUCIAL
TO VERIFY IF THE SCHOOL IS GOVERNMENT-
RECOGNIZED, LEGITIMATE, OR ACCREDITED BEFORE
ENROLLING.
C. ONLINE BOOK SCAMS. STUDENTS OFTEN SHOP
ONLINE FOR TEXTBOOK DEALS, BUT SCAMMERS
CAN STEAL CREDIT CARD INFORMATION, SO IT'S
CRUCIAL TO BUY FROM A TRUSTWORTHY WEBSITE.
D. CREDIT CARD SCAMS.CREDIT CARD COMPANIES
OFTEN VISIT SCHOOL CAMPUSES TO PERSUADE
STUDENTS TO APPLY, BUT SCAMMERS MAY STEAL
THEIR INFORMATION. VISIT LOCAL CREDIT UNIONS,
REGULARLY CHECK STATEMENTS, AND CONTACT
BANKS PROMPTLY.
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
PAYINSURANCE PROVIDES RISK MANAGEMENT
THROUGH VARIOUS TYPES OF PREMIUMS, FINANCIAL
PROTECTION, AND TAX BENEFIT CLAIMS ON PAID
PRENIUMS, OFFERING VARIOUS TYPES OF INSURANCE.
1. EMPLOYER-SPONSORED INSURANCE.
EMPLOYERS WITH 50+ FULL-TIME EMPLOYEES MUST
PROVIDE EMPLOYEE-ONLY INSURANCE, MEETING
MINIMUM GUIDELINES, BUT NOT EXCEEDING 9.66%
OF HOUSEHOLD INCOME IN PREMIUMS.
2. MARKETPLACE PLANS.MARKETPLACE PLANS ARE
AVAILABLE IN BRONZE, SILVER, AND GOLD TIERS,
WITH BRONZE PLANS OFFERING THE LEAST
COVERAGE AT LOWER PREMIUMS AND GOLD PLANS
PROVIDING THE MOST COVERAGE AT HIGHER
PRICES.
LIFE INSURANCE
LIFE INSURANCE PROVIDES DEATH BENEFIT TO
BENEFICIARIES IN EXCHANGE FOR PREMIUMS,
COVERING VARIOUS EVENTS LIKE RETIREMENT,
MAJOR INJURIES, CRITICAL ILLNESS, OR DEATH.
THE FOLLOWING ARE COMMON RISK CATEGORIES:

1. PREFERRED PLUS -THE POLICYHOLDER IS IN GOOD

HEALTH, WITH A NORMAL WEIGHT, NO SMOKING
HISTORY, CHRONIC ILLNESSES, OR FAMILY HISTORY OF
LIFE-THREATENING DISEASES.
2. PREFERRED -THE POLICYHOLDER IS IN GOOD HEALTH,
BUT MAY HAVE MINOR CHOLESTEROL OR BLOOD
PRESSURE ISSUES THAT ARE UNDER CONTROL.
3. STANDARD PLUS -THE POLICYHOLDER IS IN
EXCELLENT HEALTH, BUT CERTAIN FACTORS LIKE
HIGH BLOOD PRESSURE AND BEING OVERWEIGHT
MAY HINDER THEIR RATING.
4. STANDARD-MOST POLICYHOLDERS ARE
CONSIDERED HEALTHY AND HAVE A NORMAL LIFE
EXPECTANCY, ALTHOUGH THEY MAY HAVE A
FAMILY HISTORY OF LIFE-THREATENING DISEASES
OR MINOR HEALTH ISSUES.
5. SUBSTANDARD - SERIOUS HEALTH ISSUES, LIKE
DIABETES OR HEART DISEASE, ARE RANKED ON A
TABLE RATING SYSTEM, WITH PREMIUMS SIMILAR
TO STANDARD WITH 25% LOWER CLAIM.
BENEFITS OF LIFE
INSURANCE

THE FOLLOWING ARE THE BENEFITS OF LIFE

INSURANCE.
1. IT PAYS FOR MEDICAL AND FUNERAL COSTS.
LIFE INSURANCE COVERS MEDICAL AND FUNERAL
EXPENSES, ALLEVIATING GRIEF AMONG FAMILY
MEMBERS WHO MAY HAVE BEEN UNPREPARED.

2. FOR FINANCIAL SUPPORT. LIFE INSURANCE

COVERS MEDICAL AND FUNERAL EXPENSES,
ALLEVIATING GRIEF AMONG FAMILY MEMBERS
WHO MAY HAVE BEEN UNPREPARED.
3. FOR 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 PROVIDES PROTECTION AGAINST
UNSETTLED DEBTS AND TAXES. COMPARATIVE
ANALYSIS OF DIFFERENT TYPES OF LIFE
INSURANCE, INCLUDING ADVANTAGES,
DISADVANTAGES, AND CHARACTERISTICS, IS
PROVIDED FOR REFERENCE.
TYPES OF LIFE INSURANCE

TGE TABLE BELOW SHOWS A COMPARATIVE

ANALYSIS OF DIFFERENT TYPES OF LIFE
INSURANCE ALONG CHARACTERISTICS ,
ADVANTAGE AND DISADVANTAGES THAT MAY
SERVE AS A REFERENCE.
TYPE : 1. ENDOWMENT
CHARACTERISTIC: IT GRANTS A LUMP SUM AFTER A
SPECIFIED AMOUNT OF TIME OR UPON DEATH. THE
POLICY OWNER IS REQUIRED TO PAY THE PREMIUM
FOR A PREDETERMINED NUMBER YEARS OR UNTIL A
SPECIFIC AGE IS REACHED.
ADVANTAGE: IT ALLOWS FOR SAVING UP FOR
SPECIFIC PURPOSES. IT GUARANTEES RETURNS
UPON MATURITY. IT OFFERS SOME FORM OF
INSURANCE COVERAGE.
DISADVANTAGE: IT REQUIRES HIGHER PREMIUMS THAN
OTHER TYPES OF LIFE INSURANCE. IT IS NOT THE BEST
OPTION FOR THOSE LOOKING AT FULL LIFE PROTECTION.
2. TERM
CHARACTERISTIC: IT IS THE SIMPLEST FORM OF LIFE
INSURANCE TO OBTAIN, OF WHICH UPON DEATH, THE
BENEFICIARIES ARE PAID WITH THE BENEFIT.
ADVANTAGE: IT ENTAILS LOW PREMIUM REQUIREMENTS.
IT IS A STRONG OPTION FOR POLICYHOLDERS WHO
NEED INSURANCE BUT CANNOT AFFORD WHOLE LIFE OR
ENDOWMENT. IT IS EASY TO UNDERSTAND.
DISADVANTAGE: IT HAS NO BENEFIT IF
POLICYHOLDER OUTLIVES THE TERM PERIOD SET.
PREMIUM USUALLY GETS HIGHER UPON RENEWAL
OF TERMS.
3. WHOLE LIFE
CHARACTERISTIC: IT PROVIDES COVERAGE FOR
THE POLICYHOLDER'S ENTIRE LIFE OR UNTIL THEY
REACH 100 YEARS OLD. IT ACTS BOTH AS
PROTECTION AND SAVINGS MECHANISMS SINCE A
PORTION OF THE PREMIUM IS ALLOCATED TO
BUILD UP CASH VALUES.
ADVANTAGE: IT OFFERS PERMANENT
PROTECTION FOR FULL LIFE OR 100 YEARS. IT IS
FLEXIBLE IN TERMS OF PAYMENTS OF PREMIUMS.
IT ENTAILS FIXED PREMIUMS. IT USUALLY COMES
WITH ADDITIONAL FEATURES AND "LIVING"
BENEFITS.
DISADVANTAGE: IT REQUIRES HIGHER PREMIUMS.
IT IS DIFFICULT TO UNDERSTAND DUE TO
COMPLEXITY.
4.VARIABLE UNIVERSAL LIFE (VUL).

CHARACTERISTIC: IT SERVES AS BOTH LIFE

PROTECTION AND INVESTMENT VEHICLE IN ONE
PACKAGE. A PORTION OF THE PREMIUM IS
ALLOCATED INTO VARIOUS INVESTMENT
VEHICLES FOR THE PURPOSES OF WEALTH
CREATION. THE CONTRACT'S EARNINGS ARE
BASED ON THE PERFORMANCE OF SELECTED
INVESTMENTS.
ADVANTAGE: IT TAKES DUAL PURPOSE LIFE
INSURANCE PLUS INVESTMENT TOOL. IT HAS NO
MATURITY AGE. THE CASH VALUE IS PAYABLE ALONG
WITH THE ASSURED SUM. THE DEATH COMPONENT IS
NOT LIMITED TO FACE VALUE. IT DEPICTS LIQUIDITY,
WHEREIN FUNDS CAN BE ACCESSED IN TIMES OF
NEED AND CAN SERVE AS EMERGENCY FUNDS.
DISADVANTAGE: CASH VALUES AND DIVIDENDS ARE
NOT GUARANTEED. FACE AMOUNT AND DEATH
BENEFIT ARE DEPENDENT ON INVESTMENT
PERFORMANCE. IT INCLUDES VARIOUS INVESTMENT
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 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 FUTURE RETIREMENT WHILE
STILL YOUNG IN YOUR CAREER FIELD. YOUR
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 PULL 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 NET
WORTH, EITHER BY REDUCING YOUR DEBT,
INCREASING YOUR SAVINGS, OR INCREASING
YOUR INCOME, OR ALL OF 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
PERSONS.
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.
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.
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
FINANIAL 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 AID THEY SHOULD RECEIVE CONTINUOUS
SUPPORT TO TEACH IT OR INTEGRATE IN IEIR
LESSON. MORE SO, THERE SHOULD BE EASILY
ACCESSIBLE, OBJECTIVE, HIGH- YUALITY AND
EFFECTIVE LEARNING TOOLS AND PEDAGOGICAL
RESOURCES AVAILABLE TO ENOOLS AND TEACHERS
THAT ARE APPROPRIATE TO THE LEVEL OF STUDY.
STUDENTS' PROGRESS SHOULD ALSO BE ASSESSED
FINANCIAL LITERACY AND FINANCIAL PLANNING
AMONG TEACHERS OF HIGHER EDUCATION: A
STUDY ON CRITICAL FACTORS OF SELECT
VARIABLES SURENDAR AND SUBRAMANYA SARMA
(2018)
ABSTRACT
TEACHERS ARE THE MOST INFLUENTIAL PEOPLE IN
OUR SOCIETY. APART FROM ACADEMICS, THEY
HAVE THE ABILITY TO POSITIVELY AFFECT MANY
ASPECTS OF PEOPLE'S LIVES. BY HAVING
FINANCIAL LITERACY AND MANAGING PERSONAL
FINANCE PROPERLY, THEY CAN BECOME ROLE
MODELS TO THE STUDENTS AND HELP TO
DEVELOP FISCALLY AND SOCIALLY RESPONSIBLE
CITIZENS.
AN INDIVIDUAL WITH GOOD FINANCIAL SENSE MAY
PLAN BETTER HIS/HER PERSONAL FINANCE,
PARTICULARLY TEACHERS WHO ARE KEY
CONTRIBUTORS TO THE DEVELOPMENT OF SOCIETY. IN
THIS BACKGROUND, THIS STUDY HAS BEEN
CONDUCTED TO KNOW THE CRITICAL FACTORS USING
FACTORS ANALYSIS IN ENHANCING THE FINANCIAL
LITERACY LEVELS AND STUDY THEIR IMPACT ON
SELECT VARIABLES OF FINANCIAL PLANNING AMONG
TEACHERS OF HIGHER EDUCATION. THE STUDY FOUND
THAT THE LEVEL OF FINANCIAL LITERACY AMONG
IT DEMONSTRATES THE IMPORTANCE OF
CONTEXTUAL VARIABLES THAT MAY INFLUENCE
FINANCIAL LITERACY AND PERSONAL FINANCIAL
PLANNING. IT ALSO EXPLORED THE
RELATIONSHIPS AMONG THE SELECT VARIABLES
OF FINANCIAL LITERACY AND PERSONAL
FINANCIAL PLANNING USING A METHODOLOGY
THAT IS FREE FROM THE INFLUENCE OF THE
ATTRIBUTE OF THE RESPONDENTS.
THE STUDY FOUND THAT THE MAJORITY OF HIGHER
EDUCATION TEACHERS HAVE A HIGH LEVEL OF
FINANCIAL LITERACY, ARE AWARE OF VARIOUS
ASPECTS OF PERSONAL FINANCIAL PLANNING AND
ARE ABLE TO PLAN ON THEIR OWN IRESPECTIVE OF
THEIR SUBJECT. IT ALSO REVEALED THAT
RETIREMENT PLANNING, TAX PLANNING AND
CONTROL, FINANCIAL PLANNING, FINANCIAL
CAPACITY AND INFLATION ARE CRITICAL FACTORS IN
PERSONAL FINANCIAL PLANNING AMONG THEM.