financial awareness(pup jan 2012) v1.1

8/3/2019 Financial Awareness(PUP Jan 2012) v1.1

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Our Vision

To be the preeminent providerof financial security toindividuals over their lifetime.

Our Mission

Financial Freedom for all

Filipinos


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Financial FactsFinancial Facts

y Peoples Behavior Over Money

INCOME

LESS

SAVINGS

EQUALS

EXPENSE

BEHAVIOR 3

EXPENSE

LESS

INCOME

EQUALS

DEBT

BEHAVIOR 2

INCOME

LESS

EXPENSE

EQUALS

SAVINGS

BEHAVIOR 1


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yWhy Poor/Middle-class becomes Poorer


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y Out of 100 Filipino Retirees...


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y Retirement Computation

Age 65

Life Expectation

20 more years


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y Inflation Rate


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y Tuition Fee Increase

*Average tuition fee increase = 12.25% a year

School 2010 2016 2022 2027

UA&P 201,600 403,282 806,727 1,437,668

DLSU 139,165 278,386 556,886 992,426

ADMU 114,174 228,394 456,881 814,208

UST 56,778 113,579 227,204 404,900

UP-Diliman 45,360 90,738 181,514 323,475


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y Savings is not enough...

Deposited

Amount

Interest Rate

(364 days)

Average

Inflation

Rate

True Value

5K 2%

6%

4,800

100K 2.375% 96,375

1M 2.625% 966,250

5M 2.750% 4,837,500


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Investment BasketsInvestment Baskets


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Age 20 Untimely Death Age 60

Income

Stops/Drops


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Age 20 Untimely Death Age 60

Income Continues

Life Insurance


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y Other Income Protection

Emergency fund (3-6 months of expenses)

Medical Insurance

Accident Insurance

Disablement and Dismemberment Insurance

Critical Illnes Benefit

Hospital Income Benefit


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y Rule of tumb...

Age Protection Life Goals Retirement Expenses

21-30 10% 10% 10% 70%

30-40 10% 20% 10% 60%

40-50 10% 20% 20% 50%50-60 10% 10% 30% 50%


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Financial PlanningFinancial Planning

Why is it important?


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Why is it important?

UNCERTAINTIESUNCERTAINTIES


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How to do it...

1. Set your goals

i.e. Education, House, Retirement

2. Analyze your resources

i.e. Assets, Liabilities

3. Evaluate your options

Where to invest? Short term vs long term

4. Implement the plan

5. Evaluate the plan


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Tips to remeberTips to remeber

y Budget, Dont overspendy Dont buy items that devaluate over time

y Target Passive Income

y Pay yourself firsty Beat Inflation

y Dont acquire assets if you dont have any

means to protect ity Diversify your investments

y Avoid BAD DEBT

y Avoid SCAM


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Quotable QuotesQuotable Quotes


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Quotable QuotesQuotable Quotes


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financial awareness(pup jan 2012) v1.1

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