1Q_Values_Making Personal Finance Decisions

Money (medium of exchange)

is used to buy and sell goods and services, replacing the barter system, with a universal means of transaction

Money (store of value)

retains value over time, allowing people to save wealth today and use it in the future without it losing worth

Money (unit of account)

provides a common measure to compare the value of different goods and services in the economy.

Money (standard of deferred payment)

enables future payments for debts and obligation, allowing credit and lending arrangements to functions.

Money

is morally neutral. It becomes good or bad depending on how we earn it, use it, save it, invest it, and share it.

Diligence

careful and persistent effort in work and duties

Perseverance

continued effort to achieve something despite difficulties, failures or oppositions

Budget

a plan for managing your money wisely

Prioritize Needs

a budget helps you identify what truly matters. Focus spending on essential needs - food, shelter, health and education

Avoid Overspending

tracking your income and expenses prevents you from spending more than you earn, reducing financial stress, and avoiding necessary debt.

Save for the Future

a well-planned budget ensures a portion of income is set aside consistently, building an emergency fund and securing your financial future

Needs

food and water

shelter and housing

health and medical care

education and learning

Needs

essential for survival and well being

Wants

desired but not essential for survival

Wants

gadgets and devices

fashion and luxury items

entertainment and leisure

luxury experiences

The 50-30-20 rule

simple budgeting guideline

50% - needs

allocate half of you income to essential needs - food, shelter, utilities, healthcare, and education

30% - goes to wants

lifestyle choices like entertainment, gadgets, dining out, and fashion

20% - savings

set aside for savings, investments, and emergency funds

Saving

means setting aside a portion of your money now for future use. It is the the foundation of financial security

Emergency Fund

Financial Security

Peace of Mind

Key benefits of savings matter

Emergency Fund

cushion against unexpected expenses

Financial Security

stability and freedom from debt

Peace of Mind

reduced stress and greater confidence in the future

Investing

means putting your money to work so it grows over time.

Insurance

is protection financial loss. It shields you and your family from unexpected events - illness, accidents, property damage, ensuring financial stability when life is uncertain

Retirement

means preparing financially for your later years.

Good Debt

borrowing that builds your future and increases your net worth over time

Bad Debt

borrowing that drains your finances without long term benefit

Online Scams

fake online sellers, fraudulent websites and social media scams trick people into paying for goods never delivered.

Ponzi Schemes

fraudulent scheme where returns are paid using new investors money rather than actual profits.

To good to be true investments

promises of extremely high returns with little or no risk are red flags. If an investments sounds to good to be true

Phishing Messages

fraudsters send fake emails, texts or messages pretending to be banks or institutions.

Prudence

think before deciding. Weigh the long term consequences of every financial choice to avoid regret and waste.

Wise Decision Making

consider all consequences before acting. make informed, rational, choices guided by facts and values, not impulse

SDG1 No Poverty

SDG 12 - Responsible Consumption

SDG Integration

SDG 1- No Poverty

financial literacy empowers individuals to build economic stability, breaks cycles of poverty

SDG 12 - Responsible Consumption

wise and mindful spending habits support sustainable consumption patterns, reduce waste, and encourage responsible use of resources for a more equitable and balanced future

Financial Virtues

prudence, thrift, responsibility

Future Oriented thinking

means every spent today is a choice about the kind of future you are building for yourself and those you love

Impulsive Spending

brings temporary pleasure but leaves you financially vulnerable

Delayed Gratification

is the foundation of smart financial decision making and long term prosperity

Fast Thinking

impulsive and automatic responses driven by emotion and instinct.

Slow Thinking

deliberate, reflective and critical reasoning

Stewardship

means recognizing that the resources we have are entrusted to us - to be managed with care, wisdom and generosity.