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Getting Started With Personal Finance

Financial literacy is the knowledge and understanding of various financial concepts and skills that enable individuals to make informed and effective decisions regarding their personal finances. It involves the ability to understand and use financial information to manage money effectively, plan for the future, and navigate the complexities of the financial world. Key components of financial literacy include: Basic Financial Knowledge: Understanding fundamental concepts such as income, expense

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115 views13 pages

Getting Started With Personal Finance

Financial literacy is the knowledge and understanding of various financial concepts and skills that enable individuals to make informed and effective decisions regarding their personal finances. It involves the ability to understand and use financial information to manage money effectively, plan for the future, and navigate the complexities of the financial world. Key components of financial literacy include: Basic Financial Knowledge: Understanding fundamental concepts such as income, expense

Uploaded by

emelieosos03
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Getting Started

with Personal
Finance
Reporters:
Kyla Alliyah Chidrome
Christian Macas
Expected learning outcomes
I. Understand why some people personal finance
have more money than the VI. Realize what attitudes he/she
others may have about money
II. Know what finance involves VII.Figure out an individual’s
III.Name how finance impacts financial history
one’s personal life VIII.Know what attitude he/she
IV. What personal finance should have about money
involves IX. Be familiar with generally
V. Explain the main areas of good financial habits
Introduction
• Many people, especially young adults, lack basic financial
knowledge. This is a problem because the financial world
is complex and there are few opportunities to learn about
money management in school or at home. As a result,
individuals often make costly financial mistakes, leading
to both financial loss and emotional stress.
What is Personal Finance?
• Finance – largely about the determination and evaluation
of cash flows and evaluation such as real property, shares
of stock in a corporation, the payments left on home
mortgage, availing of bank loans and the personal
decision to retire early.
• Personal Finance – tends to concentrate on valuing
things from the perspective of an individual
FINANCE IN YOUR PERSONAL
LIFE
• Finance your daily living expenses
• Borrow money to buy a new car
• Make credit card payments
• Save for retirement
• Invest your 13th month bonus
• Plan for a wedding
• Provide for your children’s education
Personal
BASICS Banking
Debit/
OF Estate
Credit
card
PERSON planning
managem
ent
AL
FINANCE
Personal Perso
Finance is nal
defined as Finan Savings &
Tax
all financial planning ce investmen
t
decisions
and
activities of
an Retiremen
Risk
managem
individual t planning
ent
or
Main Areas of Personal Finance
• Earning Income – refers to a investing or spending
source of cash inflow that an• Investing – the purchase of
individual receives and the assets that are expected to
uses to support themselves generate a rate of return, with
and their family the hope that over time the
• Spending – includes all types individual will receive back
of expenses an individual more money that they
incurs related to buying goods originally invested.
and services or anything that• Protection – a wide range of
is consumable products that can be used to
• Saving – refers to the excess guard against an unforeseen
EXPLORING ABOUT YOUR
ATTITUDES ABOUT
MONEY
Your thoughts about money influence your actions.
Positive thoughts lead to money-management
behaviors. Negative thoughts can lead to financial
ruin.
HOW TO THINK ABOUT
MONEY
Level 1: It is not just about spending!
Level 2: Consider opportunity cost
Level 3: Think about investing
DEVELOPING GOOD
FINANCIAL HABITS

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