Financial
Literacy
Session -
Module on
Saving
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Guidelines and tips
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Earn points by helping other students or get them with a premium plan
Financial Literacy: Understanding Saving and Money Management, Papers of Finance
An introduction to financial literacy, focusing on the topics of saving, income, investment, and philanthropy. It covers the importance of financial literacy, issues related to money matters, and practical tips for spending and saving. The document also discusses different types of financial accounts and their advantages, and includes a scenario for decision-making practice.
Typology: Papers
2019/2020
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Financial Literacy Session - Module on Saving
Financial Literacy
How that person manages it Management How someone earns or makes money Income How he/she invests it (turns it into more money Investment How that person uses it to help others Philanthropy
FINANCIA
L
LITERACY
FINANCIA
L
LITERACY
Financial literacy is the ability to understand how money works in the world Being financially literate will help to build a lifetime of financial well-being.
Spending And Saving (4P’s of Spending)
Priorities People Spending responsibly goes hand-in-hand with saving responsibly. It is a skill that requires discipline and careful planning. 04 03 02 01 Pocket Priorities People Planet
Saving Your Money
In order to grow your money you must put aside a portion of what you earn regularly in a safe place that pays interest. This is known as saving.
Save First Not Last
The first thing you do when you get paid/ get an allowance is to put aside your savings
Spend less than you
earn
Avoid expensive items and live within your means
Set Savings Goals
Decide how much to save each month, and stick with
Put your money in a
safe place
Ensure that your money is in a safe place that pays interest
Advantages Of Saving With A Financial Institution
- (^) Safety : Money kept at home in a box, under the mattress, even in your purse can be stolen or lost.
- (^) Growth : We accrue interest on money kept in an account, which helps our money to grow. Money kept at home cannot grow.
- Loans : On the basis of our savings and deposits, banks can give us loans for our needs like buying a house or for education. Other financial institutions also provide loans on the basis of the savings in your various accounts.
Scenario
- (^) Peter is a 13 year-old boy who loves to play football. He wants to buy a new football because his current ball is getting old.
- (^) Peter is responsible for paying his school fees next month. He doesn’t know if he should use the money on the football or his school fees. What should Peter do? Scenario