We need financial education! (and it should be taught in schools)

[Jack Ryan]

The best time to save is when we're still young and definitely now better time than NOW! I firmly believe that people who have developed a strong saving and financial mindset are people who end up enjoying later on in their lives (financially).

Since this thread is focused to develop a saving and financial mindset in students, I would be updating this site from time to time and open up the youth's mind about finances. If we know how money works, we could control our finances but if we don't know how money works, our finances will control us.

For a start, here's a good read.

Top 7 Reasons You Should Invest and Save while You're Young

It is never too early to start investing, only too late. Of course, if you plan on working all your life and never retiring, then you won't need to invest for your retirement. However, there are many unfortunate things that can happen in the later years of your life that may not allow you to work forever (i.e. sickness) so investing early will help avoid financial problems that come up. By starting out with as little as $25 a month, and increasing the amount to greater levels over your lifetime and through the course of your career, you can ensure you come out ahead in the long run. There are many advantages of saving money and investing while you are young.


The Top 7 Reasons to Save Money and Invest While You're Young are:

1.) Slow and Steady Wins the Race- Those who start investing at an earlier age have an easier time reaching their financial goals than those who put off the task. If you are 25 years old and want to retire at the age of 65 you will have to invest less money monthly (although for a longer period of time) than if you are 55 and having to play financial catch up.

2.) Compounding Interest- Imagine if you put money aside monthly that paid interest that would then add onto your principal investment and the next round pay off of new total that was created and so on and so forth. That is the power of compounding interest and with that you can turn a small pittance now into a small fortune later.


3.) Accomplishment- Goals are an excellent motivator and can help people achieve the next level in their careers, and personal or financial life. If you make it your goal to be a property owner by 32 and start investing even small amounts at the age of 22, you will amass enough money to fund the down payment of your house and provide yourself with a true sense of accomplishment.

4.) Save Money on Top of the Money you have Already Saved- Budgeting and living within your means is an essential way to help improve the quality of life as positive behaviors with spending and thrift are often rewarded by increased credit scores. With a higher credit score you will be entitled to the lowest interest rates when you need to finance the purchase of a large ticket item like a car or a home. By investing now, you will be learning those skills that will pay off later.

5.) Retirement- When you are vivacious and young, it is nearly impossible to consider that you will want to slow down one day, but it will happen. By investing when you are young, you will be able to help build your reserves that you will need to live on later.


6.) Expect the Unexpected- The only thing that is predictable about life is that it is unpredictable. By taking the steps now to invest, when the worse does happen (and it will) you will be prepared.


7.) Improve your Spending Habits- You certainly have heard of the foreclosure problems in the U.S. by investing now, you will learn the skill sets imperative for proper money management skills throughout your lifetime.

@Makie - this presentation is best given in post graduate course or better yet given to employees. This can make a good presentation if you'd wish to come up with a module on Financial Education 101 and give a seminar . If this course will be given to students they can't picture the whole deal unless they find a job - and feel the hardship. the spending will basically varies on how much you earn. like when i used to work in Cebu (that was very long time ago) i was only receiving 18,700 a month (this is without overtime). my expenditures were limited but when i got a raised i was starting to splurge on something that i do not need. but it was too late when i came to my senses that "oh dear i don't have a saving" - that was my then girlfriend, wife now, intervened - Lesson learned.

Makie (maybe) one these days you'll have a course on FinEd101 - reserve a seat for 1.

Good luck!

[erwin_rommel]

hmm... i smell IMG hehehe

[makie]

@Makie - this presentation is best given in post graduate course or better yet given to employees. This can make a good presentation if you'd wish to come up with a module on Financial Education 101 and give a seminar . If this course will be given to students they can't picture the whole deal unless they find a job - and feel the hardship. the spending will basically varies on how much you earn. like when i used to work in Cebu (that was very long time ago) i was only receiving 18,700 a month (this is without overtime). my expenditures were limited but when i got a raised i was starting to splurge on something that i do not need. but it was too late when i came to my senses that "oh dear i don't have a saving" - that was my then girlfriend, wife now, intervened - Lesson learned.

Makie (maybe) one these days you'll have a course on FinEd101 - reserve a seat for 1.

Good luck!

My main goal in starting this thread is actually to open the eyes and minds of students in terms of expenses and finances. Savings and good finances is a habit and can't be acquired overnight. With that, I firmly believe that the best time to start developing the right sense of saving and build a very good financial mindset is when one is still a student.

In my observation, one of the reasons why families struggle financially is because the breadwinner or the parents wasn't able to develop a good financial mindset earlier when they were still younger.

Students might not be that interested about financial planning but who knows, once they get introduced to this, it might just open up their eyes. Financial literacy has never been introduced to students and even most of the working people. It might just be so worth the try.

Here's something that the students might want to ponder on with the lifestyle.

1.) Too much computer games.

P15/hour X (at least) 3 hours in a day = P45 in a day
P45/day X 6 days in a week = P270 in a week
P270/week X 4 weeks in a month = P1080 in a month
P1080/month X 12 months = whooping P12,960 in a year

I also fell into this trap before and for nearly 5 years I was playing a lot of computer games. For at least 3 hours a day, I wasted more than P60,000 of my parents hard earned money. Why weren't I able to realize this before? Basically the same reason why a lot of students failed to realize too:

[1] Lingaw ang computer games.
[2] P15 an hour isn't too much.

Worst, a lot of students play more than 3 hours in a day.

2.) Gimik, laag, tagay sessions

P55/bottle (grande) X (at least) 6 bottles = P330/tagay
P330/tagay X (let's say) 2 times in a month = P660/month
P660/month X 10 months = P6600 in a year

P6600 a year on liquor is a waste of money and that's on liquor alone. That still doesn't include transportation (taxi) and other expenses like pulutan. Roughly speaking, P10,000 is just too little for a year's expenses on leisure.

3.) Shopping

This is a broad one so I won't give numerical calculations. Fashion and being "in" is among the top priorities of most students. Kung naay bag-ong model sa cellphone mogawas, magpapalit dayun. It's ironic because students has these latest models of cellphones while their parents are using old models. Daghan ug mga estudyante ang nakaBlackberry pero ilang mga ginikanan nag gamit lang ug 3310. Some students have gadgets that even cost more than their semester's tuition fee. How ironic because they complain about tuition fee increases.

Those are just a few things nga unta makapukaw sa mga estudyante. A lesson that I have learned about finances is that we should prepare when it is still easy and not wait for hardships to come. On the students' part, I hope that they will realize these hard financial facts that I realized and not wait for the time to come nga maglisod na sila.

Since wala gyud nakaintroduce ug financial literacy sa mga students, I hope that this thread will serve it's purpose to many. It would be great when students graduate and have established a good financial base. With a very good financial background, I strongly believe that a lot of families in the future will be spared from financial difficulties.

OT lang gamay: There's a lot to learn about finances. Thanks for the appreciation.

[makie]

unsaon nalang ang kwarta ig kamatay~! hehehe!

hehe. Sa karon dili pa kung student pa, but when you'll have a family later on in life, diha na marealize kung unsa gyud ang value sa kwarta.

[makie]

basin ma parihas rani sa religious education ... mo kuha sa subject kai requirement sa course.. pero wala halos gi apply sa kinabuhi

Actually, mao na ang dakong problema. We have the knowledge but di nato iapply sa atong kinabuhi mao nang mahulog gihapon sa wala. Religious Education for one is a very helpful subject pero kay boringan man ang mga estudyante or kay dili in line sa ilang course, ingnon dayun nga wala may gamit. Ipalusot ra sa pikas dunggan ang gisulti sa teacher.hehe. Even ako, boringan ko sa ReEd sa una, samot na sa USC nga 4 gyud kabuok.hehe

If iapply lang nato sa atong kinabuhi ang atong nakat-onan sa ReEd, mas daghan unta kaayong buotan karon.hehe. Same is through with finances, kung kanang mga learnings nato atong iapply, kahit papano, moimprove pud atong kinabuhi (at least financially).

[makie]

10 Money Saving Tips for Students

Money is always an issue for students, and the current economic climate is making it more difficult. See how you can save money, and still have a great time at university with these 10 tips.

1. Living close to both to university and town, or where the shops and nightlife are, means that you can save money by not needing to get a bus or a taxi every day to go to lectures, or when you've been shopping or had an evening out. If you are going to use public transport, you might be able to get special discounts on bus, rail or tram tickets. Why not find out?

2. By buying second hand books you'll save a lot of money compared to buying them new. Some books will only be required for a short time, and so won't represent good value for money. As well as local and university book shops, don't forget that you can often find the books you need on online auction sites, or in local classified adverts.

3. Nights out are expensive, but a night in, or at a friend's house can be a lot cheaper and just as much fun. Why not take it in turns to provide the food or entertainment such as music or video games.

4. Don't feel that you have to buy all the latest clothes, CDs video games and so on. Nobody will really be impressed, and surely there are more important things to spend your money on?

5. If you learn to cook before you go to university, you won't have to rely on takeaway food, which is very expensive compared to buying the ingredients and cooking for yourself. Even if you only manage to cook very basic meals, you'll save money, and have learnt a really useful skill. You'll be able to use this to your advantage, as people will want you to cook for them.

6. Don't forget to make the most of student discounts and offers. Perhaps you might need to change your supermarket, or go to a different clothes shop, pub or bookshop, but you'll save money.

7. Remember that your money has to last longer than the first month, so learn to budget. Perhaps you can work out your budget before you start, so that you'll know how much money a week, or a day you'll have to spend.

8. If you can manage without it, don't run a car. Tax, petrol, insurance and maintenance are all very expensive for a student. You'll also be cajoled into giving people lifts, and helping people to move stuff around and drive them home when they've bought too much from the supermarket!. However, you might find somebody who does have a car that will help you if you need a lift.

9. You can save more money, by getting your bike out of the garage and using that instead of a car, bus or taxi. As long as it's roadworthy, and has lights, you don't need anything else. It's worth getting a helmet though, and if you're planning to ride it a lot, you may benefit from dedicated cycling clothing to make your journeys more comfortable and faster.

10. Save as much money as you can before you start university, or try and get a job once you're there. Having additional money will mean that you aren't quite as anxious about spending it, and are less likely to run out of money part way through the term. Why not see if you can work during the holiday periods too?

Source: 10 Amazing Money Saving Tips For Students

[Metz]

ako family nag own ug school. And I plan to add this for 4th yr graduating high school students. Maski 1 or 2hr course lang. And Im also looking into letting them play cashflow 101. And if naa nami college then dapat i-offer jud ni sa mga graduating. But plans pa for now

[makie]

ako family nag own ug school. And I plan to add this for 4th yr graduating high school students. Maski 1 or 2hr course lang. And Im also looking into letting them play cashflow 101. And if naa nami college then dapat i-offer jud ni sa mga graduating. But plans pa for now

nindot kaayo na nga plano and hopefully, college schools will consider incorporating financial literacy in their curriculum. students are missing a lot without a well established financial background.

[makie]

Budgeting isn't as hard as we thought but it really would entail discipline. If students could deal with the discipline side, chances are, they will never have a harder time with their finances. Here's a good link to follow when it comes to budgeting

Budget Worksheet for College Students

Discipline is the key in following a budget. If a budget is followed well, it will put one in a much better position financially.

[owrange]

just a thought. i guess before teaching kids to save. maybe let them learn or discover why the need to save for. if we will save just to save -- we need to take into account inflation/deflation whatever is the term for that.

so there must be some greater glory on why we need to save.

so before financial education -- we should have 'imagination education.' teach the kids to imagine on what they want out of their life. from there, they will know what to save money for.

i guess the 'financial education' here is more of 'lifestyle chage.'

anyhoo, we have to take into consideration the economic state of the philippines. As a whole, we are like the poor family who just have it's new found richness. if we just have the new found richness, the tendency is to spend and spend on the things we dream of having when we are still poor. if we survive this stage, then the next generation will no longer be that big spenders because they grow up having the 'haves.'

also, let's take a look at our culture of 'raising the whole baranggay.' The family will go into debt just to send kids to school. Now parents burried in debt, they will be saved by the children who also needs to go into debt to save the parents, and at the same time finance their selves and their own family. So if we really want to have the financial education, we somehow need to 're-shape' this culture.

Anyhoo, i agree with your idea!