Financial Literacy Seminar for Secondary School Students

"FINANCIAL LITERACY; THE IMPORTANCE OF SAVINGS“(FINANCIAL MANAGEMENT: SAVINGS AND INVESTMENT)

Laja Shoniran

Project Director

Financial Literacy for All (Teach To Save Initiative)

Background

‘Train a child the way he should go, and when he is old he will not depart from it’ Proverbs 22;6

‘Go to the ant … consider her ways and be wise Which, having no chief, Officer or ruler, Prepares her food in the summer. And gathers her provision in the harvest. ’ Proverbs 6;6-8

Objective

The concept of money What is Money? The three aspects of money The importance of money Money Management

The concept of savings What is savings? Why, How and Where do we save?

The concept of investment What is investment? Why should we invest?

The Road map

Opening Thoughts Some Definition Why do you save? Misconceptions about savings How to Save

WHY SHOULD I LEARN MONEY SKILLS?

If you invest as little as N1000 per month, you could become a millionaire.

This works according to the principle of

compounding interest.

Compounding interest will help you grow your money without having to work for every dollar.

WHY SHOULD I LEARN MONEY SKILLS?

What percentage of lottery winners wastes all their winnings within a few years?

Answer: 70%

How many football players and celebrities are broke or bankrupt within 5 years of retirement?

Answer: More than 60%.

WHY SHOULD I LEARN MONEY SKILLS?

How you handle money affects

Lifestyle

Help others

Free time

Reduce stress

Make the world a better place

How you handle money

Managing your money

Opening Thoughts

“ A penny saved is a penny earned” Benjamin Franklin

“You are not rich by how much you spend but by how much you save” Laja Shoniran

“If you earn three pence and you did not save, even if you earn one shilling you will not save” African proverb

Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it. Proverbs 21;20

Opening Thoughts

“Through wisdom a house is built, and by understanding it is established; and by knowledge the rooms shall be filled with all precious and pleasant riches” Proverbs 24; 3-4

“Poor is he who works with a negligent hand, but the hand of the diligent makes rich” Proverbs 10;4

The greatest of all diseases in life is the absence of money where and when it is needed

Dream Time (A Dream is the wish your heart makes)

Write down three important things you want to accomplish in life Education Career Family Business Travel Politics Others – philanthropy, social cause,

What is money?

Goods Services Desires ExpectationsAchievementsAccomplishment Relaxation

Bible says – Eccl 10;19

‘..Money answers/facilitates/finances all things’

What is Financial Literacy

Understanding how money works The ability to make appropriate decisions

in managing your personal finances. being able to understand and analyze

financial products in order to make smart decisions about what to do with your money

The ability to make informed decisions about your money

Three aspects of money

Earn Money Income generation – passive or active

Manage Money Saving, Spending, Budgeting, Planning

Multiply Money Investments, Business, Real estate

What is Saving?

Rescue from harm, danger, or loss. Avoidance of excess expenditure;. A reduction in expenditure or cost. Saving is income not spent, or deferred

consumption.

What is Savings?

The portion of income/money not spent on consumption of consumer goods but accumulated for investment in income generating ventures – business or real estate, or purchase of shares. Investment Reserve Funds Capital Money

Saving money is difficult

Why? Human wants are insatiable I don’t earn enough Too many responsibilities – extended

family No job – no income Business is slow School fees are too high I spend the bulk of my money on

Transportation

Why do you need to save money?

There is always a tomorrow For Retirement age Emergency To buy or build your own house To start a business or grow an existing one For leisure goods/vacation Education for children To give to charity To grow or multiply money

Secondary school students

To develop the habit of saving To store up money To create a brighter future for tomorrow To be prepared for important life events like

university, wedding, buying a house, start a business, etc

To keep money safe To earn interest and help your money grow To reduce the temptation of spending

irresponsibly To help you access loan to help you in future

Misconceptions about Savings My income is too small for me to save When you save you are worried about the future God will always take care of me financially Money is for spending Saving is hoarding You are stingy or penny-pinching when you save Whatever will be will be – God will have mercy

on who He will have mercy If you are destined to be rich, you will even if

you don’t save

What do you benefit by saving?

Peace of Mind When a person saves money

continuously, it gives them a "peace of mind". An individual will sleep better at night knowing they have additional money put aside

More Income Saving money means an individual will

have more of it at the end of the year. This is what saving money does.

What do you benefit by saving?

Monetary Safety Net Saving money provides a person with a

financial net of safety just in case they lose their job, become disabled or can no longer work. Life is uncertain, but money does not have to be

Saving Earns Interest Allocating money in a certain savings

account will allow it to earn interest.

What do you benefit by saving?

More Options When a person decides to save money and make

it a lifestyle, a plethora of choices is available. One could invest or purchase something they want. It is nice to have some wiggle room.

Attitudinal Change More Disciplined, Can delay gratification easily Can sacrifice and give more easily Values people and values things more

How do we save – money?

There are three basic ways to save money

1. Making specific deductions from income regularly

2. Shopping smart to reduce your expenditure on goods and services

3. Reducing your consumption rate for goods and services

Where to save

Conclusion

There are more than

So get a copy of this book and Start Saving Today!

Thank You

Laja ShoniranManaging Consultant

Infinite Intel ConsultHR Training, Recruiting & Business Consultants

Project Director Financial Literacy for All (Teach Children to Save Initiative)

Tel: 08023005235E-mail: lajashoniran@yahoo.comFacebook:

www.facebook.com/TeachChildrenToSaveInitiative