Republic of the Philippines

TECHNOLOGICAL UNIVERSITY OF THE PHILIPPINES

College of Industrial Education
Batangas Extension Campus
Brgy. Bungahan Cuenca, Batangas

Unit 1. Introduction of Key Concepts

I. Objectives:
a.
b.
c.

II. Discussion

LITERACY
is defined by dictionaries as the state of being able to read and write. The word "literacy"
stems from the word "literate" which appeared in the 15th century.
Latin word "literatus" means "(a person) marked with letters" that is, "distinguished or
identified with letters traditional literacy functional literacy.
Traditional literacy is the integration of listening, speaking, reading, writing, and critical
thinking. It includes a cultural knowledge which enables a speaker, writer, or reader to
recognize and use language appropriate to different social situations.
Functional literacy refers to personal reflection on what textual and visual environments
are presuming. This type of literacy enables a person to contribute for community
development.
Emergent literacy or the early literacy is defined as those behaviors shown by very young
children as they begin to respond to reading and writing acts. Emergent literacy can be
shown through pointing to and talking about the pictures, turning the pages, and asking
questions.
Basic literacy and skills has been popularly defined as the form of abilities to read, write,
and do basic arithmetic. (Barton, 2006) asserts that the notion of basic literacy is used for
the initial learning of reading and writing, which adults who have never been to school go
through. As an extension of basic literacy and skills
• Phonemic awareness is the awareness of sounds and the ability to hear and play the individual
sounds of the language.
• Vocabulary is the range of words a student is able to understand and use in context. More of a
toolbox than a skill, students’ vocabularies grow as they read and are introduced to new words.
• Fluency is the ability to read with speed, understanding, and accuracy. Yet it’s more than
information extraction — it’s the skill that allows us to ‘follow’ a text, picture its descriptions, and
hear the auditory expression of words in our heads even when reading silently.
• Comprehension is a student’s understanding of the information being imparted by a text,
such as; who, what, when, where ideas meanings.
• Awareness of print is the ability of knowing the letters of the alphabet.
Definitions of the 21st Century Literacies
Literacy generally refers to reading and writing effectively in a variety of contexts. In the
21st century, the definition of literacy has increasingly reflected the ability to use
technology for gathering and communicatinginformation. The International Reading
Association (IRA) stated that the literacies used by today’s students are much different
from those of their parents or even those of students from just a decade ago (IRA, 2009).
The IRA position statement reported that in order “to become fully literate in today’s world,
students must become proficient in the literacies of the 21st century technologies”.
However, literacy concepts have not only been changing, but they have also been
overlapping, as information literacy, multiliteracies/multiple literacies, new literacy, digital
literacy, and web literacy are all used to describe similar skills necessary for 21st century
 learning.

21st Century Literacies

Information Literacy- has been historically used to reference the literacy skills needed for
information access and problem-solving. In 1974, the President of the Information Industry
Association, Pres. Paul Zurkowskiincluded a proposal reference to this term in recommending the
establishment of a program to
promote information literacy. In 1976, information literacy required new skills that would include
how to locate and use information needed for problem-solving and decision making efficiently and
effectively. In 1998, a report from the American Library Association (ALA) explained, “To be
information literate, a person must be able to recognize when information is needed and have the
ability to locate, evaluate and use effectively the needed information” The ALA report further
outlined six areas of competency:
• recognizing a need for information,
• identifying what information would address a particular problem,
• finding the needed information,
• evaluating the information found, organizing the information, and
• using the information effectively to address the specified problem.
The American Association of School Librarians (AASL) has established standards to
guide practitioners in navigating the evolving landscape of information literacy and research and
learning. The four standards state that learners will use skills, resources and tools to:
1. inquire, think critically, and gain knowledge.
2. draw conclusions, make informed decisions, apply knowledge to new situations, and
create knowledge.
3. share knowledge and participate ethically and productively as members of our democratic
society; and
4. pursue personal and aesthetic growth.
Information literacy has provided the foundation for various literacy frameworks, it is
somewhat limited as it focuses on the learner’s use of information; while current technologies
allow the learner to not only use, but to construct and disseminate information The standard
definition of information usage suggests author practices, but it doesn't include collaborative
information creation. ACRL's [the Association of College and Research Libraries]definition
emphasizes information depth, efficient search, new knowledge incorporation, and understanding
the information environment. This extension is a necessary consideration as learners become
literate in the information age and as literacy is evaluated from emerging perspectives.
Multiliteracies/Multiple Literacies- a more contemporary view of literacy that reflected multiple
communication forms and a context of cultural and linguistic diversity within a globalized society.
Multiliteracies are also defined as the multiple ways of communicating and making meaning,
including such modes as visual, audio, spatial, behavioral, and gestural. Multiple literacies also
depict the ways people read and write in their lives. It also depicts the ways people read and write
in their lives. In other words, multiple modes of communication are possible, and these modes
affect the ways readers approach a literacy situation.Kress (2003) attributed the changes in
concepts of literacy to the media. He specifically
discussed media shifts from book to screen, which enabled the use of a variety of modes of
communication. Therefore, the term multimodality describes the various ways print and media are
represented and are a huge component of new concepts about literacy. Multimodal forms of
information include visual and audio modes of communication presented through print, photos,
videos, or graphs.
Reading is a cognitive process as well as a social/linguistic process. Multiple literacies
include the varied forms of text as well as the cultural identities expressed during communication,
known as discourse and emphasize culture and the role it plays. Many cognitive researchers seek
to understand the skills, strategies, and dispositions required for effective online reading
comprehension.

III. Reflection:
A. Based on the discussion literacy is the ability to read and write and literacy in the Latin words
literatus means that is a person. In literacy their are different literacies included and they're are the
traditional literacy , functional literacy, emergent literacy, and the basic literacy. I'm gained some
knowledge about the differences of the 4 different literacies, first is the traditional literacy is about
the on how to listening, speaking and reading. It's show on how we can be traditional interma of
literacy and like on how can be traditional by the an assigned the book while reading it's show on
we can be tradional. Functional literacy is the capacity of every individual or a person on how to
engage in all those activities in which literacy is required for effective function of his or her group.
And it's about on personal reflection of a person on how they can adapt those capacity by
accomplished those task. Then emergency literacy is the behaviors of every children's since first
on reading and writing and also it's about on how children can process their language development.
And the last is the basic literacy is the form the word basic it's about the basic arithmetic and
performing a simple skills on how they can understand different text to learn to read. This literacy
are show on how every people can gained some knowledge and how them to learn interns of the
different literacies.

B. For me, based on the discussion I learned that the definition of literacy has dramatically changed
in the 21st century, reflecting the technological advancements and cultural shifts of our time.
Traditionally, literacy was focused on reading and writing-the essential skills for understanding
and communicating through printed text. Today, however, literacy encompasses a much broader
range of abilities, including the capacity to engage with and interpret various digital, visual, and
multimodal texts. The swift development of technology and the increasing globalization of
communication have led to the emergence of new literacy forms that are vital for success in both
education and also I learned that the transformation of literacy in the 21st century compels both
educators and learners to reconsider traditional definitions and adopt a more inclusive
understanding of what it means to be "literate." As technologies continue to advance, so will the
skills required to navigate and comprehend the world. In this digital era, literacy is no longer a
fixed concept but a dynamic, multifaceted competency that necessitates adaptability, critical
thinking, and a profound understanding of the intricate relationships between technology, culture,
and communication.

IV. Recommendations:

Unit 2. Teaching Strategies for the Development of Literacy Skills

and Teaching resources.

I. Objectives:
a.
b.
c.
II. Discussions:

A. Strategies for the development of emergent literacy skills and teaching resources

What is the Definition of Emergent Literacy?

TEALE -Own initiative of a child to reading and writing
CLAY -Stages of development as he grows
SULZBY -Development of knowledge

Teale (1982) – viewed literacy as the result of children’s involvement in reading activities
facilitated by literate adults. All children who come to school already have certain experiences and
interests in learning (Teale, 1987). Thus, refers to competencies and literacy skills in early
childhood.
Marie Clay (1996) - Was the first one who used the term emergent literacy. Emergent Literacy is
based on an assumption that a child acquires some knowledge about language, reading and writing
even before attending any formal education.
Sulzby (1991) – defines LITERACY as the reading and writing behavior of young children that
precede and develop into conventional literacy.

Emergent Literacy
Is a term that is used to explain a child’s knowledge of reading and writing skills before they learn
how to read and write words. It signals a belief that, in literate society, young children-even oneand
two-year-olds-are in the process of becoming literate.

STRATEGIES FOR THE DEVELOPMENT OF EMERGENT LITERACY SKILLS

1. Pictures and objects

2. Sounds
3. Literacy and words
4. Read aloud experiences

1.PICTURES AND OBJECTS

Teaching with objects offers a direct, tactile experience for students. Educational research over
the past fifty years has clearly established that hands-on learning is a rewarding, essential
experience for all learners.

Advantages:
• a powerful way to facilitate concept learning
• an excellent means to enhance students’ sensory literacy
• offers latitude for shaping lessons to students’ interests and needs
• allows students to work cooperatively
• arouses curiosity Word Building Exercises
• Key Words (Musical Words, Claiming Words Classifying Words, Making Alphabet Books,
Illustrating, Finding Words Everywhere)
• Word Walls
• Word Books

2. LITERACY AND WORDS

Studies have shown that the larger a child’s vocabulary, the quicker they will learn to read, as they
are familiar with more of the words they will encounter.

Advantages:
• Develop larger vocabularies
• Become better readers and preform better in school.
3. SOUNDS
• Children start to develop this early decoding ability in early childhood.
• The ability to decode words is strongly reliant on children having strong phonological awareness
skills, which are a gateway into letter-sound knowledge.
• Early phonics knowledge is the key to starting to decode written words. Children can use phonics
knowledge to “sound out” words.
4. READ ALOUD EXPERIENCES
• Read stories to students out loud students are able to “identify behaviors associated with effective
listening”
• Social communication about the book afterwards helps promote language learning and
development (Jalong, 2010, p. 6)
• Reading a variety of texts out loud: students can use their inquisitiveness to ask questions and be
problem solvers by predicting solutions.
READING
Reading – is an interaction between the text and the reader. Teaching reading is a comprehension
process aimed at equipping individuals with the skills and strategies necessary to decode,
comprehend, and engage with written language. Beginning Reading Skills and Teaching
Resources. It develops a variety of skills. It explores key beginning reading skills and provides
information on effective teaching resources. Effective reading instruction often begins with
phonics, where learners grasp the foundational connections between letters and sounds.
5 Vocabulary Development – plays a crucial role, as a rich and varied vocabulary enhances
comprehension and expression.

Components of Reading Instruction

1. Phonemic Awareness – ability to work with sounds in spoken language and sets the stage for
decoding, blending, and word reading.
2. Phonics – a way of teaching children how to read and write. It helps children hear, identify and
use different sounds that distinguish one word from another.
3. Fluency – also called volubility and eloquence. It refers to continuity, smoothness, rate, and
efforts in speech production.
4. Vocabulary – a set of words, typically the set in a language or the set in a language or the set
known to an individual.
5. Comprehension – the ability to process written text, understanding its meaning, and to integrate
with what the reader already knows.
Teaching resources for beginning often includes:
1. Decodable books – books designed with a focus on specific phonics elements, helping learners
practice acquired skills.
2. Phonics games and activities – engaging activities that make learning phonics fun, such as word
games, puzzles, and interactive apps.
3. Sight words practice – flashcards and activities to reinforce recognizing frequently used words
by sight.
4. Read Aloud – reading books aloud to children to expose them to rich vocabulary and enhance
comprehension.
5. Phonics worksheets – printable or online worksheets that provide additional practice and reading
skills.
Benefits of Reading:
• Reading reduces stress
• Improve vocabulary skills
• Improves knowledge
• Expands imagination
• Improves communication skills
21st Century Literacy Skills and Teaching Resources
The term "21st-century skills" is generally used to refer to certain core competencies such as
collaboration, digital literacy, critical thinking, and problem-solving that advocates believe schools
need to teach to help students thrive in today's world.
A. Student-led learning (COOPERATIVE LEARNING)
Student- or peer-led learning is where students themselves facilitate their learning, often by
students in the year above guiding students in group activities to discuss materials with their peers
and solve problems.
Cooperative learning involves students working together in small groups to accomplish shared
goals or complete group tasks. It is widely recognized as a teaching strategy that promotes
socialization and learning among students from pre-school through to tertiary level and across
different subjects and curriculum areas.
In cooperative learning, students work together in small groups on a structured activity. They are
individually accountable for their work, and the work of the group as a whole is also assessed.
Cooperative groups work face-to-face and learn to work as a team.
4 Specific Goals of Student Led Instruction
1. The students are able to understand what they are learning in the greatest detail possible.
2. Empower a student with their learning; and a sense of pride and accomplishment.
3. Allows teachers to see what their students do and don't know, what they fully understand, and
where the teacher needs to fill in the gaps of their learning.
4. Improve a student's oral communication skill.
Components of cooperative learning
Educators are still wary about the computer's role in cooperative learning Thus they pose the
position that the use of computers do not automatically result in cooperative learning. In that case,
therefore, assign the teacher several tasks in order to ensure collaborative learning these are:
-assigning students to mixed-ability teams,
-establishing positive interdependence,
-teaching cooperative social skills, and
-helping groups process information.
These are in addition to assigning a work in which each member of the group will realize that their
group will not succeed unless everyone contributes to the group success.
It is also important for the teacher to limit learning group clusters (is the ideal number in a group)
so that there can be closer involvement in thinking and learning.
How to Create a Student Led Classroom
1. Asking quality questions and teaching your students to do that. This is "making the question do
the work."
2. Student-led discussions. Teacher models effective discussion leader practices and points them
out, then hands that role over to students.
3. Student evaluations of each other. Students evaluate and give feedback.
4. Student feedback to each other. Students to give feedback to other students during discussion,
such as vocabulary, adding details, and asking probing questions.
5. Socratic seminars. This practice transfers ownership to students.
6. Structures. A student-led classroom has many structures, routines, and procedures that
are hidden, but essential and they are the foundation.
7. Teacher language. "Listen to your colleagues."
B. Inquiry-based classroom environment
According to Lenox (1993) teachers must be prepared to "teach students to become critical thinkers,
intellectually curious observers, creators, and users of information." The goal is to prepare students early
on to "learn how to learn and carry these skills into other areas of their lives so that they can be independent
seekers and consumers of information throughout their lives. Teachers of all subjects must blend traditional
fact-based approach with an emphasis on learner-based inquiry and the scientific inquiry process (Lenox
1993).
Inquiry-based learning is an approach to learning that emphasizes the student's role in the learning process.
Rather than the teacher telling students what they need to know, students are encouraged to explore the
material, ask questions, and share ideas.
Inquiry-based learning uses different approaches to learning, including small group discussion and guided
learning. Instead of memorizing facts and material, students learn by doing.
Inquiry-based learning allows students to better understand and recall material by actively engaging with it
and making their own connections.
Inquiry Based Learning: What It Looks Like in a Classroom Setting As a teacher, you are most likely
familiar with a KWL chart Inquiry-based learning focuses on the "want to know" portion of a KWL chart.
Flow of Knowledge
In a true inquiry lesson, there is a back and forth flow of knowledge between the teacher and students. It
begins when the teacher poses an idea or concept and then asks targeted questions. This leads to students
sharing their ideas and asking additional questions. Next, the teacher responds with additional thought-
provoking questions that encourage students to investigate on their own and analyze their findings. And
finally, students build on their knowledge and defend new explanations and understandings based on
evidence they collect through their investigations. On the other hand, if inquiry is not the focus of a lesson,
the flow of knowledge tends to be one-directional, as the teacher poses an idea or concept and asks specific
questions. The teacher then provides direct resources or learning activities from which the answers to the
questions can be found. Students complete the activity or research with specific guidance from the teacher,
and then present the answer to the question. This gives them little or no opportunity for higher level
thinking.
Teacher as a Facilitator
With real inquiry, teachers are facilitators, as opposed to just a teacher imparting information. As a
facilitator, they prompt student questioning and idea sharing with purposeful questions, ensure that students
have access to the resources as they determine what they need, and set clear expectations for student
behavior. Most importantly, students are held accountable for their own actions. If a teacher is simply acting
as a teacher, they may only lecture and they rarely encourage communication and questioning. Most likely,
they provide limited resources such as books or websites, and they strictly monitor and micromanage
student behavior. As you can imagine, this type of environment is not very conducive to feelings of student
ownership. Students have no sense of ownership when they have no choice in how to investigate a problem.
And if students are working independently and have no one depending on them, they don’t have much
incentive to perform beyond minimum expectations.
Benefits of Inquiry
One benefits of true inquiry is a genuine feeling of student ownership as students are given
meaningful tasks that are engaging and challenging. Additionally, student accountability increases
when students are part of a cooperative group and have others depending on them.
C. Collaborative Activities
Collaborative learning is a method of teaching and learning in which students’ team together to
explore a significant question or create a meaningful project. A group of students discussing a
lecture or students from different schools working together over the Internet on a shared
assignment are both examples of collaborative learning.
Collaborative learning - the practice of breaking students into small groups to answer questions,
work on projects and learn from one another - has become one of the strongest core philosophies
operating in classrooms today. The concept is not new; much of the early research on collaborative
learning (also called cooperative learning) was done in the 1980s and 1990s when most classrooms
favored the traditional teacher lectures and individual student work. But with the growth of
technology and the increasing value society places on the ability to work in teams, collaborative
learning has become more common.
Collaborative activities are any activities where learners are working cooperatively in pairs or
groups. For example:
• Pair or group discussions
• Completing shared tasks in a pair or group, e.g. matching, sorting, ranking
• Activities or games with a competitive element, e.g. bingo Drama and role play.
• Information exchange activities, including barrier games and jigsaw activities
10 Strategies to Build on Student Collaboration in the Classroom
1. Deliberately select which students will work together
2. Size the groups for maximum effectiveness
3. Teach your students how to listen to one
4. Set the rules of language and collaboration
5. Make goals and expectations clear
6. Assign roles to the members of each group
7. Use real-world problems, not imaginary ones
8. Consider giving each group a different task
9. Play a game to get students warmed up
10. Evaluate each group on its own merit

How do cooperative and collaborative learning differ from the traditional

approach?
Cooperative and collaborative learning differ from traditional teaching approaches because
students work together rather than compete with each other individually.
Collaborative learning can take place any time student’s work together -- for example, when they
help each other with homework. Cooperative learning takes place when students work together in
the same place on a structured project in a small group. Mixed-skill groups can be especially
helpful to students in developing their social abilities.
D. HOTS (Higher Order Thinking Skills) Activities
It distinguishes critical thinking skills from low-order learning outcomes, such as those attained
by rote memorization. HOTS include synthesizing, analyzing, reasoning, comprehending,
application, and evaluation.
HOTS is based on various taxonomies of learning, particularly the one created by
Benjamin Bloom in his 1956 book, "Taxonomy of Educational Objectives: The Classification of
Educational Goals." Higher-order thinking skills are reflected by the top three levels in Bloom's
Taxonomy: analysis, synthesis, and evaluation.
Teaching Strategies that Enhance Higher-Order Thinking
1. Help Determine What Higher-Order Thinking - Help students understand what higher-order
thinking is. Explain to them what it is and why they need it. Help them understand their own
strengths and challenges. 2. Connect Concepts - Lead students through the process of how to
connect one concept to another. doing this you are teaching them to connect what they already
know with what they are learning
3. Teach Students to Infer - Teach students to make inferences by giving them "realworld"
4. Encourage Questioning- A classroom where students feel free to ask questions without any
negative reactions from their peers or their teachers is a classroom where students feel free to be
creative day.
5. Use Graphic Organizer- Graphic organizers provide students with a nice way to frame their
thoughts in an organized manner.
6. Teach Problem-Solving Strategies- Teach students to use a step-by-step method for solving
problems. This way of higher-order thinking will help them solve problems faster and more easily
7. Encourage Creative Thinking- Creative thinking is when students invent, imagine, and design
what they re thinking.
8. Use Mind Movies- When concepts that are being learned are difficult, encourage students to
create a movie in their mind
9. Teach Students to Elaborate Their Answers- Higher-order thinking requires students to really
understand a concept, not repeat it or memorize it.
10. Teach QARs Question-Answer-Relationships, or QARS, teach students to label the type of question
that is being asked and then use that information to help them formulate an answer.
E. Creative Learning
the method of teaching which has the student think out of the box. This creative thinking is a
method of turning the student into a problem solver and giving that student a "tool box" with which
to approach problems. The creative teacher must nurture these skills and instill in those student the
potential which is inside.
The creative teacher will try something completely new and out of the box. The
creative teacher will take in essence take risks and not be afraid to fail.
Creativity is an indispensable tool of the teacher to create enjoyable, productive and
fun learning environment. It is an instrument for the learners to digest and go beyond to
what has been Albert Einstein stated that imagination is more important than knowledge
knowledge is limited while imagination embraces the whole world.

III. Reflection:
IV. Recommendation:

Unit 3. 21st Century Skills Categories

I. Objectives:
a.
b.
c.

II. Discussions:

Learning skills
The mental processes required to adapt and improve upon a modern work Environment
• Critical thinking
Applying higher order thinking to new problems and issues, using appropriate reasoning to
effectively analyze the problem and make decisions about the most effective ways to solve the
problem. ”Finding solutions to problem”. Critical thinking is learning how to solve problems . It
teaches student to accept immediate claims without seeking the truth. It is ability to differentiate
facts from opinion and not just learn a set of facts or figures but also discover these for the sake of
knowing what you need to know.
• Creativity
Using knowledge and understanding to create new ways of thinking in order to find a solution to
new problem and to create new products and services “ Thinking outside the box” Creativity
encourage students to think beyond the expectations of convention. One of the student creates an
interesting or innovative solutions to a problem . Then when they share it the next student can
become inspired to try something similar.
• Collaboration
Process of two or more people or organizations working together to complete a task or achieve a
goal. It is also defined as two or more people working together to achieve shared goals.
• Communication
Communication is the sending and receiving of information and can be one-onone or between
groups of people, and can be face-to-face or through communication devices. Communication
serves major purposes: to inform, to express feelings, to influence, and to meet social expectations.
Each of these purposes is reflected in a form of communication.
Literacy skills
Literacy skills help students gain knowledge through reading as well as using media and
technology. These skills also help students create knowledge through writing as well as developing
media and technology.
Information Literacy
Students need to be able to work effectively with information, using it at all levels of Bloom’s
Taxonomy (remembering, understanding, applying, analyzing, evaluating, and creating).
Information literacy involves traditional skills such as reading, researching, and writing; but new
ways to read and write have also introduced new skills:
Consuming information: The current excess of information requires students to gain new skills in
handling it. When most information came through official publications like books, newspapers,
magazines, and television shows, students encountered data that had been prepared by
professionals.
Producing information: In the past, students were mostly consumers of information. When they
produced information, it was largely for a single reader—the teacher—and was produced for a
grade. It was therefore not an authentic communication situation, and students felt that writing was
a purely academic activity.
Media Literacy
Media literacy involves understanding the many ways that information is produced and distributed.
The forms of media have exploded in the last decade and new media arrive every day: Students’
use of media has far outstripped educational use, and students will continue to adopt new media
long before teachers can create curricula about it.
Technology Literacy
We are living through a technological revolution, with huge changes taking place over brief spans
of time. A decade ago, Facebook didn’t exist, but now many people could not live without it. The
average cellphone is now more powerful than computers from several years ago. We are
surrounded by technology, and most of it performs multiple functions.
• Freedom to express their views, personalities, and identities
• Ability to customize and personalize technology to their own tastes
• Ability to dig deeper, finding whatever information they want
• Honesty in interactions with others and with organizations
• Fun to be part of learning, work, and socialization as well as entertainment
• Connecting to others and collaborating in everything
• Speed and responsiveness in communication and searching for answers
• Innovation and change, not settling for familiar technologies but seeking and using what is new
and better.
LIFE SKILLS
1. FLEXIBILITY -The ability to adapt to new situations, improvise, and shift strategies to achieve
a goal/outcome.
2. LEADERSHIP – The ability to set goals, walk a team through the steps required, and achieve
those goals collaboratively.
3. INITIATIVE – Initiative only comes naturally to a handful of people. As a result, students need
to learn it to fully succeed. This is one of the hardest skills to learn and practice. Initiative often
means working on projects outside of regular working hours.
4. PRODUCTIVITY – The ability to achieve a goal using these skills: setting and meeting
deadlines, prioritizing needs, managing time, working ethically, collaborating and cooperating
with others.
5. SOCIAL SKILLS – Social skills are crucial to the ongoing success of a professional. Business
is frequently done through the connections one person makes with others around them.
III. Reflection:
IV. Recommendation:

Unit 4. 21st Century Literacies

I. Objectives:
a.
b.
c.
II. Discussion

GLOBALIZATION
Globalization - is the process of interaction and integration between people, business entities,
governments, and cultures from other nations, driven by international trade and investment and
supported by information technology (Levin institute, 2017)
■ Globalization as a phenomenon is not new. Nations and cultures have been interacting and
integrating with one another for millennia.
■Consider how ancient Greek culture was widespread across the Mediterranean that even the
Egyptians could speak their language, and how Rome was so inspired by Greek culture that they
adopted it wholesale.
■Consider how so much of Chinese, Arab, and Indian cultures have become part of our own; theses
interactions and subsequent integrations did not happen recently, but even during centuries before
there was even a political entity known as the Philippines.
The effects of Globalization
Meyer (2000) summarize the effects of globalization as follows:
■ Economic, political, and military dependence and interdependence between nations;
■ Expanded flow of individual people among societies.
■ Interdependence or expressive culture among nations; and
■Expanded flow of instrumental culture around the world.
Economic Dependence/Interdependence
■ Early 90s when the term globalization entered in the Philippine public mindset. It was popularly
understood to be mainly economic phenomenon, and a negative one at that.
The idea that foreign-owned business could come into the country and freely "set-up shop,"
thereby, choking-out local industries was not a welcome thought, even though it was erroneous.
Kentor (2001) notes that foreign capital dependence increases income and equality in four ways:
■Equality in four :
1. It creates a small, highly paid class of elites to manage these investments, to create many but
usually low-pay jobs;
2. Profits from these investment are repatriated, rather than invested in the host country, therefore
inhibiting domestic capital formation;
3. Foreign capital penetration tends to concentrate land ownership among the very rich; and
4. Host countries tend to create political and economic climates favorable to foreign capital that in
turn limit domestic labor's ability to obtain better wages in simple words, "the rich become richer,
and poor become poorer
■Hout (1980) observes that international dependence (another world for globalization) tends to
suppress adult wages, which in turn perpetuates the role of children as economic necessities (the
familiar saying "Kapag maraming anak, maraming katulong sa hanapbuhay"), leading to exclusive
population growth.
Political and Military Dependence/ Interdependence
Viray(2018) conducted a survey in late 2018 and found out that three in five Filipinos believe that
United Stated would intervene on behalf of the country in case of war.
Despite the current conservative stance of the US on its foreign policies, this can be taken as
evidence of the Philippine dependence on both the political and military power of the US in order
to maintain sovereignty as a nation-state in the Southeast Asia region.
Expanded Flow of Expressive and Instrumental Culture
The Philippine Statistic Authority (PSA) estimates that there were 2.3 million Overseas Filipino
Worker (OFWs) during the period of April to September 2017, who were responsible for up to
205.2 billion pesos in remittances (Philippine Statistics Authority 2018). Meyer (2000) observes
three reasons for this, socio-economic migration, political expulsion, and travel/tourism.
Cultural Literacy is a term coined by Hirsch ( referring to the ability to understand the signs and
symbols of a given culture and being able to participate in its activities and customs as opposes to
simply being a passive (and outside) observer.
The signs and symbols of culture include both its formal and informal languages, its idioms and
form of expression, entertainment, values, customs, roles, traditions and the like most of which are
assumed and unstated. Thus, they are learned by being part of the culture, rather than by any formal
means.
Expanded Flow of People among Societies
The fact that globalization encourages the movement of people between nation-states should come
as no surprise to us. The Philippine Statistics Authority (PSA) estimates that there were 2.3 million
Overseas Filipino Workers (OFWs) during the period of April to September 2017, who were
responsible for up to 205.2 billion pesos in remittances (Philippine Statistics Authority, 2018).
Meyer (2000) observes three reasons for this: socio-economic migration, political expulsion, and
travel/tourism.

What is Multiculturalism?
It refers to the state of a society or the world in which there exists numerous distinct ethnic and
cultural groups seen to be politically relevant and a program or policy promoting such a society
(D. Ivison, 2001) An inclusive approach to cultural diversity in government policy, school
curriculum, life style, and popular understanding of a certain country.

Multicultural Literacy Multicultural Literacy as a set of skills and knowle difficult to define
because of how it change. As a cultures begin to mix and change as a result of globalization,
conflicts inevitably arise over identity, values, and worldviews. This situation consequently needs
for a literacy that enables us to quickly and easily identify and resolve such conflicts, preferably
before they even begin. Multicultural literacy is a knowledge and skills necessary to ensure that
any communication with a culture different from our own is clear, productive, and respectful such
that their differences are celebrated and neither culture is demeaned or treated as inferior.

Examples of manner of being multicultural literate:

▲ Be selfless
▲ Know that good and useful things can (and do) come from those different from us.
A Be willing to compromise
▲ Accept that there are limits

Issues in Teaching and Learning Multicultur Literacy in the Philippines

Conflicting Requirements for Peace the heart of multicultural literacy is peace among different
cultures- that is productive and non- violent interaction. Nationalistic and Regionalistic Pushback
the increasing demand for multicultural sensitivity, inclusion and diversity in the recent years has
also given rise to resistance from groups who believe that their identity is being "watered-down by
the needed compromises

The Persistence of the Problem Boutte (2008) suggests that issues of discrimination in all its forms
(racial, religious, tribal, cultural, etc.) are the issues of hatred, which defines in an educational
settings as "the lack of compassion and lack of respect for the right of others," and that such hatred
must be fought and its roots must be attacked, because for as long as hatred exists in the human
mind, real peace will be impossible (Vreeland, 2001). The Question of Love Another, issue in
teaching and learning multicultural literacy is better posited as a question: "why should I treated
people of another culture with respect?"

DIMENSIONS OF MULTICULTURALISM
1. Content Integration
Basic form of inclusion that incorporate a group's culture, genders, abilities, religions, etc. Diverse
members are visible or represented. This is the start to sharing identities with others, but that it is
far from the final step in the goal towards fully embracing multiculturalism.
2.Knowledge Construction
Values and assumptions based on various identities, perspectives, or positionality.
Asking: What is my frame of reference? How did I come to believe or know what I know? What
have been my life experiences that have shaped my views? The same questions can be asked to
learn about others,
3. Equity Pedagogy
They way an environment, routine, setting, or event is structured so that it positively affects as
many people as possible. Having an awareness of the methods your are using and how it impacts
diverse races, genders, abilities, beliefs, etc. Adapting and altering strategies to differentiate the
way in which information is disseminated or learned.
4. Prejudice Reduction
Becoming aware of own biases and recognizing how stereotypes influence your actions and
attitudes about differences. Explicitly discussing racism, sexism, ableism, etc. and how they show
up in the world. Acknowledging the history and implications of the "isms".
5. Empowering Culture & Social Structure
Being mindful of the policies and procedures of institutions, organizations, or companies that
perpetuate the isms. Self-monitoring the equitable treatment of all members and disrupt negative
cycles in daily procedures, rules, routines, and traditions

Intercultural Communication
It is the verbal and nonverbal interaction between people from different cultural backgrounds. It is
also a discipline that studies communication across different cultures and social groups, or how
culture affects communication..

Intercultural communication concerns with the process of interpreting and sharing meanings with
individuals from different cultures.

Intercultural Communication and Its Various Forms

1. Interracial communication
It is interpreting and sharing of meanings with individuals from different races.
It occurs when interactants are of different races.
2. Interethnic communication
It refers to interaction with individuals of different ethnic origins.It occurs when the
communicating parties have different ethnic origins..
In the Philippines, the Filipino ethnic groups include the Tagalog, Cebuano, Ilocano, Bicolano,
Kapampangan, Maranao, Maguindanao, and Tausug.
3. International communication
It is the communication between persons representing different nations.
It occurs between persons representing political structures.It is the communication practice that
occurs across international borders.The need for international communication was due to the
increasing effects and influences of globalization.
4. Intracultural communication
It is the interaction with members of the same racial or ethnic group or co-culture as yours.
It includes all forms of communication among members of the same racial, ethnic, or other co-
culture groups.
SOCIAL LITERACY
Social literacy refers to the presence of social skills, knowledge, and positive human values that
enable humans to create positive and responsive relations with other people without
discriminations
IMPORTANCE OF SOCIAL LITERACY
It improves students’ positive behavior and reduces negative behavior. While effectively
preventing a variety of problems such as alcohol and drug use, violence, truancy, and bullying,
social skills learning promotes students academic success, health, and overall well-being.
Social Skill
It is the ability to interact with others given social context in specific ways that are socially
acceptable or valued and at the same time personally beneficial, mutually beneficial, or primary
beneficial to others
Types of Social Skills
• Greetings
• Initiating Conversation
• Empathizing
• Reading social cues
• Previewing or planning
• Problem solving
• Apologizing
WHAT IS CULTURAL AND INTERCULTURAL COMMUNICATION?
Cultural
The use of language and other communicative tools to carry out the activities and commitments of
particular groups
Intercultural
The use of Language and other communicative tools to carry aut the activities and commitments
of two different groups
What are the issues in the teaching of social literacy?
The acquisition of social literacy is a complex process which is historically and culturally
conditioned and context specific
Children learn through social practices, both explicit and implicit, and become human through
social interaction
HOW DO CHILDREN LEARN TO LIVE SOCIALLY WITH BEACH OTHER AND WITH
ADULTS?
The first view is normative and communal
From their culture, children learn customs that provide them with a guide to act in ways to
minimize conflict
The second view is pragmatic and individualistic
Social order is dependent on sanctions and formal agreements
In the normative view, children are persuaded of the moral force of acting socially through their
voluntary associations with others, both in their immediate circle, such as the family, and in the
wider community
Subjective Standards of Morality
Truth and morality are considered subjective and open to individual interpretation
Human Nature
Experience has taught us that the inherent goodness of humanity is, at best, unreliable
Educating students with social literacy to ensure their academic and career success.
Situational Awareness in the Workplace
An ability to read social situations illustrates strength to employers-quickly picking up on a client’s
mood or expectations in various business or cross-cultural
Social Intelligence in Technological Communication
Text-speak and technology use have affected many young people’s ability to communicate

How is communication affected by media and information?

INFORMATION
• data, knowledge derived from study, experience, or instruction,
signals or symbols
• knowledge of specific events or situations

MEDIA
• Communication
Tools

TERMS TO UNDERSTAND
Media Literacy
• The ability to read, analyze, evaluate and produce communication in a variety of
media forms.
 •The ability to recognize when information is needed and to locate, evaluate,
effectively use and communicate information in its various formats.
•The ability to use digital technology, communication tools or networks to locate,
evaluate, use, and create information.

Media and Information Literacy

Represented as the capability to ACCESSS, ANALYZE, and INVENT MEDIA.
It is also a mandatory for people to know their human rights, as indicated in Article
19 of the Universal declaration of Human Rights Which states that "Everyone has
the right to freedom of opinion and expression;

Why is Media Literacy Important?

1. The influence of media in our central
2. The high rate of media consumption and
3. The media influence on shaping perception, beliefs and attitude.
4. The increasing importance of visual
5. The importance of information in society

What is Media Literacy?

- A way to carry a message from one person to another

Key aspects of media literacy

Understanding the constructed nature of all media messages, and the fact that
creative strategies and choices are always involved in producing any media
message or text
Understanding how media work: providing gratification, setting agendas,
cultivating worldviews, exercising ideological control
Understanding your roles as citizens, consumers and producer how to be a critical
consumer and producer and to use media to enhance your role as a citizen
But it's not all about being on the receiving end of messages (advertising, movies,
books, magazines, radio, television, emails and etc.)

Media that are used to communicate to a large group of people?

• Music / Radio
• Television
• Newspaper
• Internet
• Books
• *Cellular Phones / Telephones
• Video Games
• Billboards
• Poster
• Sky Writing
• Movies
• Magazines

Media that are used to communicate from one individual to another?

• Email
• Texting
• Letters (Mail)
• Boards / Posters
• Pager
• FAX
• Web Cam
(Skype)
• Instant
Messages
 • Social
Networking

Media that are used for entertainment?

• Television
• Magazines
• Movies
• Music ( CDs, iPod, Radio)
• Video Games
• Comic Books
• Books
• Internet

What is "Literacy"?
- The ability to decode a message.

Seven dimension of mil

1. Tool Literacy - ability to understand and use practical and conceptual tools
2. Resource Literacy - ability to understand the form, format, location and access media
3. Social-Structural Literacy - how information is socially situated and produced
4. Research Literacy - ability to understand and use IT.
5. Publishing Literacy -ability to format and publish research ideas
6. Emerging Technology Literacy - ability to emerging in information technology.
7. Critical Literacy - ability to evaluate critically the intellectual human

Advantages and disadvantages

Advantages of Media and information

1. Media educate people on health matters.
2. People get the latest world news in a very short time regardless of distance
3. People can bring out their hidden talents in the multimedia and visual arts, comedy, acting,
dancing and singing.
4. Media increase knowledge learned from quiz programs.
5. People feel convenient in accessing information through mobile phones.
6. They become a vehicle in promoting products toward increased sales.
7. They serve as a good source of entertainment.
8. Television allows electronic duplication of information that reduces mass education costing.
9. Media lead to the diffusion of diverse cultures, and cultural practices.
10. They help people around the world understand each other and respect differences

Disadvantages of Media and information

1. They lead to individualism. Spending too much time on the Internet and watching television
2. Some media contents are not suitable for children
3. A newspaper is geographically selective.
4. The increase in advertisements in television and radio makes them less attractive.
5 The internet can be a possible way for scams, fraud and hacking.
6. Media can be addictive that may result in people's decreased productivity
7. They can cause health hazards, such as radiation effects, poor eyesight, hearing defects, and
others.
8. They may induce drugs and alcohol use.
9. They can lead to personal injury by imitating the stunts showcased in media.
10 They can ruin reputation through an anonymous account, malicious scandals, false accusations
and rumors.

Unit 5. Financial Literacy

I. Objectives:
 a.
b.
c.
II. Discussion

Financial Literacy
it is the ability to understand and effectively use various financial skills, including personal
management, budgeting, and investing.
Essential Components of a Financial Plan
1.) Insurance Planning
Is the process of carefully selecting insurance policies to financially protect yourself, your
family members, assets, etc., against unexpected losses.
2.) Investment Planning
Is the process of identifying financial goals and converting them through building a plan
3.) Retirement Planning
Means preparing today for your future life so that you continue to meet all your goals and
dreams independently.
4.) Tax Planning
Is a legitimate strategy to lessen the tax burden through available tax rebates,
exemptions, and benefits.
5.) Estate Planning
Is the process of deciding how an individual’s assets will be preserved, managed and
distributed upon a death or incapacity
BUDGETING
• Having a budget simply means having a method of balancing how much money you spend
with how much money you earn.
• Budgets are vital for businesses; they can also be valuable tools for managing your personal
finances.
Why is budgeting important?
Budgeting is important because it helps individuals and households manage their finances
effectively by providing a clear plan for how money will be earned, saved, and spent.
Key reasons include:
1. Financial Control: Budgeting gives you control over your money by ensuring that your income
is directed toward essential expenses, savings, and financial goals, reducing the likelihood of
overspending.
2. Goal Achievement: By setting aside money for specific objectives—such as saving for a home,
vacation, or retirement—a budget helps you stay focused on achieving both short-term and long-
term goals.
3. Debt Management: With a budget, you can allocate funds toward paying off debt, making it
easier to reduce or eliminate financial liabilities over time.
4. Preparedness for Emergencies: Budgeting allows you to build an emergency fund for
unexpected expenses, such as medical bills or car repairs, which helps prevent financial stress.
5. Improved Spending Habits: It helps you distinguish between needs and wants, encouraging more
thoughtful spending and preventing impulsive purchases.
6. Long-Term Financial Security: By regularly saving and investing through a budget, you are
better positioned for financial stability and security in the future.
Budgeting is a crucial tool for managing finances, achieving goals, avoiding debt, and maintaining
financial well-being.
What is a personal budget? A personal budget is a financial plan that outlines an individual's
income and expenses over a specific period, typically monthly. It helps track spending, manage
savings, and allocate funds for various needs and goals.
How to start a budget
1.Calculate your income- The first step in starting a budget is to determine your net income—or
your pay after tax deductions.
2. Make lists of your expenses - Begin by listing all your fixed expenses, which stay the same each
month.
3. Set realistic goals -Make a list of both short- and long-term financial goals you want to
accomplish.
4. Choose a budgeting strategy -50/30/20 budget: With this strategy, about 50% of your income
goes to what you need, 30% goes to things you want and at least 20% goes to savings and debt
repayment.
SPENDING
• Spending refers to the act of using money to purchase goods and services. It encompasses
all financial transactions where money is exchanged for items, whether essential (like food and
housing) or non-essential (like entertainment and luxury items).
Categories of Spending:
Fixed: Regular, recurring costs that remain constant each month, such as rent, mortgage, and
insurance.
Variable Expenses: Costs that fluctuate, including groceries, entertainment, and utilities.
Distinguishing Needs vs. Wants:
Needs: Essential items required for basic living, such as food, clothing, and shelter.
Wants: Non-essential items that enhance quality of life, like luxury goods and leisure activities.
INVESTING
• Investing is the process of allocating money or resources with the expectation of generating
a profit or earning a return over time.
Key Principles of Investing
Time Horizon: Understanding the length of time, you plan to invest is essential.
Risk and Return: Higher potential returns usually come with higher risks. Investors must assess
their risk tolerance and align it with their investment choices to avoid significant losses.
Diversification: Spreading investments across different asset classes helps reduce risk. A
diversified portfolio can protect against market volatility by not putting all your eggs in one basket.
Investment Vehicles
Stocks Equity shares in companies.
Bonds typically provide fixed interest payments and are considered safer than stocks, making them
a good option for risk-averse investors.
Mutual funds pooled investment funds managed by professionals, investing in a diversified
portfolio of stocks and/or bonds.
Exchange traded funds ETFs offer diversification and flexibility, allowing investors to buy and sell
throughout the trading day.
Real estate often serves as a hedge against inflation.
Cryptocurrencies digital assets that have gained popularity as alternative investments.
Strategies for successful investing
• Set Clear Goals
• Diversification
• Understand Risk Tolerance
• Educate Yourself
• Regular Monitoring and Rebalancing

Avoiding Financial Scams

1. Review your bank accounts
- Check your credit card and banking statements regularly to make sure there are no unauthorized
charges.
2. Use strong passwords and change them often
-It’s important to use strong passwords on all of your online accounts, and it’s good practice to
change them regularly. Be sure not to use the same password for multiple accounts.
3. Shred sensitive information
-Don’t throw away any sensitive paperwork before shredding it. Dumpster diving is a common
tactic whereby scammers will go through your garbage to find out information such as account
numbers and passwords, and then use it to access your data or steal your identity.
4. Use the Internet safely
- Try to avoid using public Wi-Fi, as it’s less secure and can leave you vulnerable to hackers.
5. Check your credit report
- Review your credit reports thoroughly and make sure your information is accurate. If there are
any debts that you do not recognize, let them know you want to dispute it.
6. Double check email addresses and links
- Always read email addresses and links carefully to make sure they’re legitimate. If you’re unsure,
contact the company or government agency directly to confirm whether or not they sent you
communication.
7. Educate yourself
- Ultimately, the best way to avoid becoming a victim of financial fraud is to educate yourself on
common scams.
Insurance & Taxes
What Is Insurance?
Insurance is a contract, represented by a policy, in which a policyholder receives financial
protection or reimbursement against losses from an insurance company. The company pools
clients’ risks to make payments more affordable for the insured. Most people have some insurance:
for their car, their house, their healthcare, or their life.
Insurance policies hedge against financial losses resulting from accidents, injury, or property
damage. Insurance also helps cover costs associated with liability (legal responsibility) for damage
or injury caused to a third party.
Key Takeaways
• Insurance is a contract (policy) in which an insurer indemnifies another against losses from
specific contingencies or perils.
There are many types of insurance policies.
• Life, health, homeowners, and auto are among the most common forms of insurance.
• The core components that make up most insurance policies are the premium, deductible, and
policy limits.
How Insurance Works
Many insurance policy types are available, and virtually any individual or business can find an
insurance company willing to insure them—for a price. Common personal insurance policy types
are auto, health, homeowners, and life insurance. Most individuals in the United States have at
least one of these types of insurance, and car insurance is required by state law.
Businesses obtain insurance policies for field-specific risks, For example, a fast-food restaurant's
policy may cover an employee's injuries from cooking with a deep fryer. Medical malpractice
insurance covers injury- or death-related liability claims resulting from the health care provider's
negligence or malpractice. A company may use an insurance broker of record to help them manage
the policies of its employees. Businesses may be required by state law to buy specific insurance
coverages.
Important: Most insurance is regulated at the state level.
There are also insurance policies available for very specific needs. Such coverage includes
business closures due to civil authority, kidnap, ransom, and extortion (K&R) insurance, identity
theft insurance, and wedding liability and cancellation insurance.
Insurance Policy Components
Understanding how insurance works can help you choose a policy. For instance, comprehensive coverage
may or may not be the right type of auto insurance for you. Three components of any insurance type are the
premium, policy limit, and deductible.
Premium
A policy’s premium is its price, typically a monthly cost. Often, an insurer takes multiple factors into
account to set a premium. Here are a few examples:
• Auto insurance premiums: Your history of property and auto claims, age and location, creditworthiness,
and many other factors that may vary by state.
• Home insurance premiums: The value of your home, personal belongings, location, claims history, and
coverage amounts.
• Health insurance premiums: Age, sex, location, health status, and coverage levels.
• Life insurance premiums: Age, sex, tobacco use, health, and amount of coverage.
Much depends on the insurer's perception of your risk for a claim. For example, suppose you own several
expensive automobiles and have a history of reckless driving. In that case, you will likely pay more for an
auto policy than someone with a single midrange sedan and a perfect driving record. However, different
insurers may charge different premiums for similar policies. So finding the price that is right for you
requires some legwork.
Policy Limit
The policy limit is the maximum amount an insurer will pay for a covered loss under a policy. Maximums
may be set per period (e.g., annual or policy term), per loss or injury, or over the life of the policy, also
known as the lifetime maximum.
Typically, higher limits carry higher premiums. For a general life insurance policy, the maximum amount
that the insurer will pay is referred to as the face value. This is the amount paid to your beneficiary upon
your death.
The federal Affordable Care Act (ACA) prevents ACA-compliant plans from instituting a lifetime limit for
essential healthcare benefits such as family planning, maternity services, and pediatric care.
Deductible
The deductible is a specific amount you pay out of pocket before the insurer pays a claim. Deductibles serve
as deterrents to large volumes of small and insignificant claims.
For example, a $1,000 deductible means you pay the first $1,000 toward any claims. Suppose your car's
damage totals $2,000. You pay the first $1,000, and your insurer pays the remaining $1,000.
Deductibles can apply per policy or claim, depending on the insurer and the type of policy. Health plans
may have an individual deductible and a family deductible. Policies with high deductibles are typically less
expensive because the high out-of-pocket expense generally results in fewer small claims.
Types of Insurance
The National Association of Insurance Commissioners (NAIC) compiles an index of complaints about
insurance companies. This information comes from state insurance regulators. The NAIC then compares
the number of complaints to the insurance company's market share.
There are many different types of insurance. Let’s look at the most important.
Health Insurance
Health insurance helps covers routine and emergency medical care costs, often with the option to add vision
and dental services separately. In addition to an annual deductible, you may also pay copays and
coinsurance, which are your fixed payments or percentage of a covered medical benefit after meeting the
deductible. However, many preventive services may be covered for free before these are met.
Health insurance may be purchased from an insurance company, an insurance agent, the federal Health
Insurance Marketplace, provided by an employer, or federal Medicare and Medicaid coverage.
The federal government no longer requires Americans to have health insurance, but in some states, such as
California, you may pay a tax penalty if you don't have insurance.
If you have chronic health issues or need regular medical attention, look for a health insurance policy with
a lower deductible. Though the annual premium is higher than a comparable policy with a higher deductible,
less-expensive medical care year-round may be worth the tradeoff.
Home Insurance
Homeowners insurance (also known as home insurance) protects your home, other property structures, and
personal possessions against natural disasters, unexpected damage, theft, and vandalism. Homeowner
insurance won't cover floods or earthquakes, which you'll have to protect against separately. Policy
providers usually offer riders to increase coverage for specific properties or events and provisions that can
help reduce deductible amounts. These adders will come at an additional premium amount.
Renter's insurance is another type of homeowners insurance.
Your lender or landlord will likely require you to have homeowners insurance coverage. Where homes are
concerned, you don't have coverage or stop paying your insurance bill your mortgage lender is allowed to
buy homeowners insurance for you and charge you for it.
Auto Insurance
Auto insurance can help pay claims if you injure or damage someone else's property in a car accident, help
pay for accident-related repairs on your vehicle, or repair or replace your vehicle if stolen, vandalized, or
damaged by a natural disaster.
Instead of paying out of pocket for auto accidents and damage, people pay annual premiums to an auto
insurance company. The company then pays all or most of the covered costs associated with an auto accident
or other vehicle damage.
If you have a leased vehicle or borrowed money to buy a car, your lender or leasing dealership will likely
require you to carry auto insurance. As with homeowners insurance, the lender may purchase insurance for
you if necessary.
Life Insurance
A life insurance policy guarantees that the insurer pays a sum of money to your beneficiaries (such as a
spouse or children) if you die. In exchange, you pay premiums during your lifetime.
There are two main types of life insurance. Term life insurance covers you for a specific period, such as 10
to 20 years. If you die during that period, your beneficiaries receive a payment. Permanent life insurance
covers your whole life as long as you continue paying the premiums.
We compared price, policy types, financial stability, customer satisfaction, and other factors to find the best
life insurance companies.
Travel Insurance
Travel insurance covers the costs and losses associated with traveling, including trip cancellations or delays,
coverage for emergency health care, injuries and evacuations, damaged baggage, rental cars, and rental
homes.
However, even some of the best travel insurance companies do not cover cancellations or delays due to
weather, terrorism, or a pandemic. They also don't often cover injuries from extreme sports or high-
adventure activities.
What Are Taxes?
Taxes are mandatory contributions levied on individuals or corporations by a government entity—whether
local, regional, or national. Tax revenues finance government activities, including public works and services
such as roads and schools, or programs such as Social Security and Medicare.
In economics, taxes fall on whoever pays the burden of the tax, whether this is the entity being taxed, such
as a business, or the end consumers of the business’s goods. From an accounting perspective, there are
various taxes to consider, including payroll taxes, federal and state income taxes, and sales taxes.
Key Takeaways
• Taxes are mandatory contributions collected by governments.
• The Internal Revenue Service (IRS) collects federal income taxes in the United States.
• There are many forms of taxes and most are applied as a percentage of a monetary exchange (for example,
when income is earned or a sales transaction is completed).
• Other forms of taxes, such as property taxes, are applied based on the assessed value of a held asset.
• Understanding what triggers a tax situation can enable taxpayers to manage their finances to minimize the
impact of taxes.
Understanding Taxes
To help fund public works and services—and to build and maintain the infrastructure used in a country—a
government usually taxes its individual and corporate residents. The tax collected is used for the betterment
of the economy and all who are living in it.
In the United States and many other countries in the world, income taxes are applied to some form of money
received by a taxpayer. The money could be income earned from salary, capital gains from investment
appreciation, dividends or interest received as additional income, payments made for goods and services,
and so on.
Tax revenues are used for public services and the operation of the government, as well as for Social Security
and Medicare.
As the large baby boomer generation has aged, Social Security and Medicare have claimed increasingly
high proportions of the total federal expenditure of tax revenue.
Throughout U.S. history, tax policy has been a consistent source of political debate.
A tax requires a percentage of the taxpayer’s earnings or money to be taken and remitted to the government.
Payment of taxes at rates levied by the government is compulsory, and tax evasion—the deliberate failure
to pay one’s full tax liabilities—is punishable by law. (On the other hand, tax avoidance—actions taken to
lessen your tax liability and maximize after-tax income—is perfectly legal.)
Most governments use an agency or department to collect taxes. In the United States, this function is
performed federally by the Internal Revenue Service (IRS).
Types of Taxes
There are several very common types of taxes:
• Income tax—A percentage of generated income that is relinquished to the state or federal government
• Payroll tax—A percentage withheld from an employee’s pay by an employer, who pays it to the
government on the employee’s behalf to fund Medicare and Social Security programs
• Corporate tax—A percentage of corporate profits taken as tax by the government to fund federal programs
• Sales tax—Taxes levied on certain goods and services; varies by jurisdiction
• Property tax—Based on the value of land and property assets
• Tariff—Taxes on imported goods; imposed with the aim of strengthening domestic businesses
• Estate tax—Rate applied to the fair market value (FMV) of property in a person’s estate at the time of
death; the total estate must exceed thresholds set by state and federal governments
Tax systems vary widely among nations, and it is important for individuals and corporations to carefully
study a new locale’s tax laws before earning income or doing business there.
Below, we will take a look at various tax situations in the United States. Generally speaking, the federal
government levies income, corporate, and payroll taxes; the state levies income and sales taxes; and
municipalities or other local governments mainly levy property taxes.
Income Tax
Like many nations, the United States has a progressive income tax system, through which a higher
percentage of tax revenues are collected from high-income individuals or corporations than from low-
income individual earners. Taxes are applied through marginal tax rates.
A variety of factors affect the marginal tax rate that a taxpayer will pay, including their filing status—
married filing jointly, married filing separately, single, or head of household. Which status a person files
can make a significant difference in how much they are taxed. The source of a taxpayer’s income also makes
a difference in taxation.
It’s important to learn the terminology of the different income types that may affect how income is taxed.
Capital gains taxes are of particular relevance for investors. Levied and enforced at the federal level, these
are taxes on the profit generated when you sell an asset that's increased in value.
The rate of taxation on the profit depends on the length of time for which the asset was held. Short-term
capital gains (on assets sold one year or less after they were acquired) are taxed at the owner’s ordinary
income tax rate, whereas long-term gains on assets held for more than a year are taxed at a lower capital
gains rate—based on the rationale that lower taxes will encourage high levels of capital investment.
Tax records should be maintained to substantiate the length of ownership when both the assets were sold
and the tax return was filed.
Payroll Taxes
Payroll taxes are withheld from an employee’s paycheck by an employer, who remits the amount to the
federal government to fund Medicare and Social Security programs. In 2024, employees will pay 1.45%
into Medicare on all wages and 6.2% into Social Security on the first $168,600 earned, increasing to
$176,100 in 2025.
Anyone who earns more than $200,000 as a single filer (or $250,000 for married couples filing jointly)
pays an additional 0.9% into Medicare.
Payroll taxes have both an employee portion and an employer portion. The employer remits both the
employee portion, described above, and a duplicate amount for the employer portion. The employer rates
are the same 6.2% for Social Security up to the wage base limit, and 1.45% for Medicare on all wages.
Therefore, the total remitted is 15.3% (6.2% employee Social Security + 6.2% employer Social Security +
1.45% employee Medicare + 1.45% employer Medicare).
Payroll taxes and income taxes differ, although both are withheld from an employee’s paycheck and
remitted to the government. Payroll taxes are specifically to fund Social Security and Medicare programs.
A self-employed individual must pay the equivalent of both the employee and employer portion of payroll
taxes through self-employment taxes, which also fund Social Security and Medicare.
Corporate Taxes
Corporate taxes are paid on a company’s taxable income. The steps to calculate a company’s taxable income
are:
Sales revenue - cost of goods sold (COGS) = gross profit
Gross profit - operating expenses such as general and administrative expenses (G&A), selling and
marketing, research and development (R&D), depreciation, etc. = earnings before interest and taxes (EBIT)
EBIT - interest expense = taxable income
The corporate tax rate in the United States is currently a flat rate of 21%. Before the Tax Cuts and Jobs Act
(TCJA) of 2017, the corporate tax rate was 35%.
In August of 2022, the United States Congress passed a new 15% corporate minimum tax into law as part
of the Inflation Reduction Act of 2022. This new minimum tax only affects U.S. corporations with three-
year average book values of $1 billion or more and foreign corporations with three-year average U.S.
income over $100 million.
Sales Taxes
Sales taxes are charged at the point of sale when a customer executes the payment for a good or service.
The business collects the sales tax from the customer and remits the funds to the government.
Each state can implement its own sales taxes, meaning they vary depending on location. There's even room
for cities and counties to use their own rates, provided that they abide by the taxing rules of their state.
In 2024, the highest average state and local sales tax rate was found in Louisiana, at 9.56%. Five states—
Alaska, Delaware, Montana, New Hampshire, and Oregon—did not have a state sales tax, although Alaska
did allow municipalities to charge local sales tax.
Property Taxes
A common property tax in the United States is the real estate ad valorem tax. A millage rate is used to
calculate real estate taxes; it represents the amount per every $1,000 of a property’s assessed value. The
property’s assessed value is determined by a property assessor appointed by the local government.
Reassessments are typically performed every one to five years.
Property tax rates vary considerably by jurisdiction and many states also tax tangible personal property,
such as cars and boats.
In FY 2022, the state with the highest property effective tax rate was New Jersey at 2.08%. The lowest state
ranking was Hawaii at 0.26%.
Tariffs
A tariff is a tax imposed by one country on the goods and services imported from another country. The
purpose is to encourage domestic purchases by increasing the price of goods and services imported from
other countries.
There are two main types of tariffs: fixed fee tariffs, which are levied as a fixed cost based on the type of
item, and ad valorem tariffs, which are assessed as a percentage of the item’s value (like the real estate tax
in the previous section).
Tariffs are politically divisive, with debate over whether the policies work as intended.
Estate Taxes
Estate taxes are levied only on estates that exceed the exclusion limit set by law. In 2024, the federal
exclusion limit is $13.61 million, increasing to $13.99 million in 2025. Surviving spouses are exempt from
estate taxes.
The estate tax due is the taxable estate minus the exclusion limit. For example, a $15.7 million estate would
owe estate taxes on $2.09 million in 2024 ($1.71 million in 2025).
The estate tax rate is a progressive marginal rate that increases from 18% to 40%. The maximum estate tax
rate of 40% is levied on the portion of an estate that exceeds the exclusion limit by more than $1 million.
States may have lower exclusion limits than the federal government, but no state taxes estates worth less
than $1 million. Only Oregon has the $1 million exemption limit.
State rates are also different from the federal rate. In 2024, the highest state estate tax rate, implemented in
Hawaii and Washington, was 20%.
What is Financial Literacy?
• Financial literacy is the ability to understand how money works: how someone makes, manages
and invests it, and also expends it.
Why we have money problem?
1. No work, no income, no money;
2. Money problem can be the root of all other issues, domestic concerns and problems within the
family;
3. We lack knowledge on how to manage our money and finances. If we have money, we simply
spend it and more often, we don't think what we'll need for tomorrow; and
4. We don't know how to invest.
Some Tips to empower oneself
1. Identify which are the NEEDS and the WANTS
2. Freedom from WANT.
3. Get out of debt.
4. Prudent use of money.
5. Thriftiness and diligence
6. Get loans only if needed to
7. Self help and financial independence
8. Improve your physical and spiritual well-being.
9. Know your worth.
Why do we need money?
• We need money to LIVE.
• We need money to GROW.
• We need money to help others.
• We need money to live harmoniously with others.
• We need money for the future.
How to Increase Your Wealth
• Work hard (but watch for your health);
• Spend less (buy only thing's that are necessary and are extremely needed, not want);
• Start a personal savings program and discipline (money saved is money earned); and
• Acquire financing or loans to start or expand business and for wealth creation (it takes
money to make money).
12 Great Tips on Financial Literacy
by: Alexander B. Raquepo.
1. Invest in cooperatives
- it brings in additional value to you as a person; earnings are tax-free; and
- participate in governance
2. Slowly build up your share capital (investment). Regular add-ons or top-ups are encouraged
daily, weekly, monthly or every quarter
3. Open savings and every member of the family besides enrolling them as members of credit
unions.
4. Borrow or avail of loans strictly for loans productive and entrepreneurial purpose only.
5. Invest in various forms, types, windows, programs of your credit union
6. Don't spend more this is simple mathematics. You cant live and buy your wants on credit, it's a
dangerous set-up
7. Sell unwanted, not used or idle properties, gadgets that you have. They might not be needed but
might be needed by others.
8.Buy yourself an insurance. It's practical advisable, non debatable and helpful times of needs.
9. Make an inventory of your monies and investments, update stand make comparisons and
analysis. Make a cash flow if necessary.
10. Try to live on interest (LOI). Spend your interest incomes and let the principal stays.
11. Donate and share to communities and church. They're good luck charms. If you can do this, its
an indicator that you are financially capable and independent.
12. Do not gamble. If you must...don't; if enticed...don't; if pressured by peers...don't, you envy
your neighbor who won...don't; etc.
III. Reflection:
IV. Recommendation:

MARIA LIRA D. BRIONES MR. VINCENT L. GAHUM

BSIE-HE 2A INSTRUCTOR