Understand of financial literacy. What is it and what does
Understand how to effectively carry out
Be equipped how to cultivate and maintain a
Be equipped on importance of investing and different
FINANCIAL LITERACY IS THE ABILITY TO UNDERSTAND AND
EFFECTIVELY USE VARIOUS FINANCIAL SKILLS, INCLUDING
PERSONAL FINANCIAL MANAGEMENT, BUDGETING AND INVESTING.
POSSESSING THE SKILLS AND KNOWLEDGE ON FINANCIAL MATTERS
TO CONFIDENTLY TAKE EFFECTIVE ACTION THAT BEST FULFILS AN
INDIVIDUALS PERSONAL NEEDS , FAMILY AND THE GLOBAL
8. Is the process of wisely
managing your personal
finances so that you can
achieve your goals and
Is a set of skills and knowledge, attitude and behaviors
that allows individuals to make informed and effective
decisions regarding money matters.
Main purpose/goal: To achieve individual financial
wellbeing by changing from our current behavior to the
10. Current behavior
• Lives on a day-to-day basis/
Hand to mouth.
• Savings not linked to
• Borrows for emergencies
• Can’t choose the right
• Make a spending plan,
budgets and uses it to
• Has a savings plan with clear
• Maintain an emergency
• Choose the right investment
11. Why is it important to be financially
One can effectively manage money
Understand credit and debt management
Have money to meet emergencies and for other important
You will be able to convince others to lend you money
Have general knowledge r e g a r d i n g f i n a n c e s
Develop confidence and attitude that enables one to be s self-
Enables one to discuss money and financial issues
Make good financial choices about saving, spending and
12. Financial plan
A comprehensive picture/road map of your current finances, your
financial goals and any strategies you've set to achieve those goals.
‘It’s not about choice it’s about action’
13. Basic concepts in financial planning
Budgeting-the process of creating a plan to spend your money. Balancing your
expenses with your income. This spending plan is called a budget.
Saving - income not spent, or deferred consumption by putting money aside in, for
example, a deposit account, a pension account, an investment fund, or as cash.
Putting money aside.
Investing- is the act of distributing resources into something to generate
income or gain profits. Putting money to work.
Debt management-is a way to get your debt under control through financial
planning and budgeting.
Financial Accountability-responsibility for the way money is used and
15. Step 1: Assess your financial
With a clear understanding of your current financial
situation, you can decide where you should start from,
and what you need to achieve your financial goals.
Knowing your net worth is important to assessing
your financial situation.
Start by making a list of all your assets as well as your
liabilities. Net worth is broadly calculated as your
assets minus your liabilities.
“Start where you are with what you
16. Step 2: Create a budget
Prioritize your needs and wants and look for any
unnecessary expenses you can cut to save
Refrain from overspending especially impulse buying.
Before you decide to borrow money, make sure you
can afford new debt repayments on top of your
current expenses or commitments.
18. Step 3:Set your financial goals
Ensure they have numerical targets
Break goal(s) into periodic targets i.e annually,
quarterly, semi annual
22. Step 5:Work out and implement a basic
Educate yourself ie work with a financial
consultant or attend a training
Start! There’s no perfect opportunity! Start with
what you have and where you are!
23. Step 6:Regularly review and adjust your
After formulating a financial plan, you should exercise
strict discipline to follow the plan.
Review your existing budget and investment portfolio
from time to time to make sure they still fit your
24. Factors that influence one’s personal
Savings and investments
Type of financial adviser you have
‘‘The wealth of an individual is the wealth
of a nation“
25. Benefits of financial planning
There is peace of mind
• Spendon day-to-day needs such as food,
housing, transportation, clothing, healthcare, debt
repayment, and other non-essential needs such as taking alcohol
Save money for unexpected expenditures e.g emergencies,
medical bills, death,
someone selling their property due to an emergency
• Investing money in income generating activities to earn income
over the long- term.
26. We are all a function of how
we can make, manage and
It is a summary of estimated income and expenditures
over a specified period of time
Telling your money where to go instead of wondering
where it went.
28. Steps to budgeting
Create budget beforehand
Review your financial goals
Estimate amount of income by source
List all expenses and amount needed for each one
Make sure your expenses are not more than your income
Decide how much you will save
Review and adjust as needed
Understand that every month won’t be the same
Budget using the money you know you will get for sure,not what you hope or wish you will
Pay yourself first
Track your spending
Focus on progress over perfection
30. How to stay within your budget
• Remind yourself often what you planned to spend
• Put in the budget something for unexpected spending needs
• Keep savings out of reach so you do not spend them
• Keep track of what you spend
• Make sure you do not spend more than what is budgeted
• If you spend more for one item, spend less for something else
• Make a list of ways to cut planned expenses
• Get the family to participate in developing and sticking with the
• When investing money in business, consider what to do if
35. What are savings?
• Money that is put away in the present for use in the future
• Investments in animals or land that can be sold when cash is
• A way of building assets
• A fundamental part of moneymanagement
Saving is putting money aside for future use and spending.
Saving can be in form of cash or an asset.
37. Good spendingandsaving practices
• Make a budget for the coming week or month. This means that you list the
expected money coming in and going out, and that you plan what you will do
with the money. Plan how much you will save every day, week or month.
• Stick to your saving plan!
• Before spending your money, ask yourself if you really need the
want to buy
• Don’t buy it if you don’t need it
• If you don’t spend money that you think you should, put that money on the
side for later use. Don’t just spend it because you can!
• Even saving a small bit of money is better than saving nothing
• Keep records of how much you actually saved and spent every day,
• Look at your spending habits and determine how you can cut them down so
that you can save more
38. Different ways to save:
On an account in a commercial bank. This is a formal way of saving money.
They are a safe option for keeping your money. They come with a monthly or
With aSavings andLoan Association (SLA) or any other self-helpgroup.
People from the same village or farmers group save their money together to
make the money grow. SLAs give out loans to members and collect interest.
The money generated from interest repayment is then shared among the
With aregistered Financial Cooperative (SACCO). A SACCO is aSavings
and Credit Co-Operative. This is a legal entity with formal and de-fined
structures and systems.
Mobile banking, Locked savings
Homesaving, inabox/tin, underthe mattress, or inahole underthe soil in
the house.This is the least safeway of saving.
Assets suchaslivestock andlandare amethodof saving becausethey hold
value andcanberesold (forthe sameamountofmoneyat purchasingor
39. Rule of thumb to saving:
• Save as soon as you earn. That is, put
the savings aside before spending
• Try to save 10%-20% of your income
• Don’t carry a lot of cash, avoid the temptation to spend it!
• Keep savings out of reach in a safe place
• Good savings behavior requires discipline
• Discipline is learned through practice!
• Spend carefully
“Financial freedom doesn’t happen by mistake, it happens by
41. Save more? Open a savings account, decide how
much to save and start
Invest more? Open investment and brokerage a/c,
decide how much
money to put in and allocate in your budget
Track spending? Download tracking apps/ Create
Start doing it! Less talk, more action!
42. Start the Journey now !
Think big, start small andstart now!
Progress over perfection!
An investment is an asset or item acquired
with the goal of generating income or
The act of putting money, effort, time, etc. into
something to make a profit.
‘To be more, we must become more’
44. Why should I
Grow your money/earn higher returns
Save for retirement
Reach financial goals
Start and expand your business
‘Wealth is the ability to make choices you can support
financially, live a lifestyle you value and contribute to society
in a way that has meaning to you’
These are shares in a company. Are the same as stocks. Therefore, if you buy
stocks you are buying equities.
The key objective is to sell shares when price is higher than when bought or
received dividend payments.
Equity investment – money that is invested in a company by purchasing
shares of that company in the stock market.
A) Public equities: Shares listed on a stock exchange
B) Private equities: Shares in companies that aren’t listed on the public stock
Have a strong understanding of the nature of the business & confidence in
Equities carry higher risk and are recommended for long term investments
47. Fixed Income
Treasury bonds and Treasury bills
Instruments issued by the government to borrow from thepublic.
They offer a fixed rate of return referred to as interest.The
longer the instrument, the higher the return
T-bills are issued for 91,182 and 364days
T-bonds are issued for 1 year up to 20 years
Operate same way as T-bonds but issued by private companies
Due to high risk associated, they offer higher returns thanT-bills
Are available in banking institutions and are similar to savings
a/c but fixed for certain periods.
The longer the money is fixed for, the higher the interest
They prevent one from misusing their savings & future
Help foster financial disciplines & healthy money habits
Investments in property are usually in the form of land or rental
Are pools of fund that are managed by professional fund
mangers on your behalf and placed in various investments.They
include equity funds; they invest in public equities
Objective is to grow
Money Market Funds
They invest in low risk investments that can easily be converted
into cash s.a fixed deposits, T-bills, short term bonds
Objective is to keep money safe.
The best investment you’ll ever make is in yourself.
Learn a valuable skill and add value to yourself.
Invest in knowledge
51. Invest where you understand the market.
You always have options; people, strengths, time, brand etc
‘It doesn’t come easy nor quick but it comes’
It is an obligation that requires one party, the debtor, to pay
money or other agreed-upon value to another party, the creditor.
Also referred to as a sum of money that is owed or due.
54. Handling debts
Understand what the debt was used for
Refrain from taking new loans
Make at least the minimum payment on all your loans to ensure
credit record remains clean.
Make additional payments to reduce principal
Understand that something has to give
Get comfortable with ‘NO’
Find ways to increase your income ie side hustles
Invest your money, don’t just save it
Seek good sales deals, bonuses and discounts
‘I can change my circumstances,
because I can change me’
58. In conclusion
“Our deepest fear is not that we are inadequate. Our
deepest fear is that we are powerful beyond measure.
It is our light, not our darkness that most frightens us.
We ask ourselves, who am I to be brilliant, gorgeous,
talented, fabulous? Actually, who are you not to be?
Your playing small does not serve the world. We were
born to make manifest the glory of God that is within
us. And as we let our own light shine, we
unconsciously give other people permission to do the
same.” Marianne Williamson
59. Additional material
The richest maninBabylon by George S. Clason
The Psychology of moneyby Morgan House
Broke Millennial –Erin Lowry
Success habits by Napoleon Hill
60 Principles of success
Financial Intelligence, money budgeting and management by
Anderson M. Hill
YouTube channels–SusanWanjiku & RinaHicks,Centonomy& Just
61. Our contact and services
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