April Newsletter

GenZ Advertency April’22 Newsletter:

EXPLORING FINANCIAL LITERACY

ABOUT US Who we are

GenZ Advertency is a student-led initiative that aims to educate the youth and create awareness on the topics that aren’t outright taught in schools. Our April Newsletter will therefore address financial literacy as a result of the blatant ignorance that encumbers it in educational systems. Despite financial literacy being an utterly integral part of adulthood and independent life, it is a topic much relegated in terms of studies. Hence, jokes on the inability to do taxes actually involve into harmful and unsustainable financial practices bracketed by financial illiteracy. Therefore, GenZ Advertency aims to use our April Newsletter to introduce you to the importance of and inculcate healthy and sustainable financial routines within you.

Table of Contents 1.

ARTICLE: THE IMPORTANCE OF FINANCIAL LITERACY IN THE MODERN WORLD (PAGE 4)

2. ARTICLE: LEARNING HOW TO BUDGET (PAGE 6) 3. ARTICLE: STARTING FINANCE AT SCHOOL (PAGE 8)

4. ARTICLE: LEARNING HOW TO INVEST (PAGE 10) 5. ARTICLE: TIPS FOR SAVING YOUR MONEY (PAGE 12)

THE IMPORTANCE OF FINANCIAL LITERACY in the Modern World WRITTEN BY: AIMAN ADEEL

THE QUESTION OF WHETHER FINANCIAL LITERACY IS IMPORTANT AT ALL OFTEN ARISES IN DISCOURSES THAT DEBATE ITS ABSENCE IN MOST SCHOOL CURRICULA. IN THE SIMPLEST OF WORDS, FINANCIAL LITERACY IS IMPORTANT AND IS AN INTEGRAL ASPECT OF A SUSTAINABLE ECONOMIC PROCESS. BUT WHAT EXACTLY IS FINANCIAL LITERACY? FINANCIAL LITERACY IS THE ABILITY TO MAKE INFORMED FINANCIAL DECISIONS USING VARIOUS SKILLS SUCH AS BUDGETING AND INVESTING. COMMON PERCEPTIONS DICTATE IT TO BE A REQUIREMENT ONLY FOR PEOPLE IN BUSINESS, BUT IN THE MODERN WORLD, WHERE MONEY HAS EVOLVED INTO AN INDISPENSABLE ENTITY, THIS SCOPE HAS BEEN BROADENED TO INVOLVE EVERYONE. AT THE FOUNDATION OF THIS ARGUMENT LIES THE FACT THAT FINANCIAL LITERACY ENCOMPASSES AN INSTRUMENTAL PART OF FAMILY OR INDIVIDUAL LIFE. AN INABILITY TO BUDGET OR MANAGE MONEY CAN BE DETRIMENTAL TO THESE SITUATIONS AS ONE WOULD FIND THEMSELVES WITHOUT A CUSHION TO FALL BACK ON IN TRYING TIMES. ADDITIONALLY, AN INCREASED COMPLICATION OF FINANCIAL PROCESSES WORLDWIDE ENSURES THAT FINANCIALLY ILLITERATE PEOPLE CANNOT COPE UP WITH DECISIONS THAT IMPACT THEIR OWN WELLBEING. FROM THE RIPE AGE OF A COLLEGE-GOER, WHERE STUDENTS NOT ONLY HAVE TO BALANCE GRADES BUT ALSO STUDENT DEBTS AND, AT TIMES, LIVING EXPENSES, TO RETIREMENT AGES WHEREBY PEOPLE HAVE TO PLAN FOR THEIR RETIREMENT PLANS BUT LACK THE TECHNICAL UNDERSTANDING TO PICK THE SCHEME MOST SUITED TO THEM, FINANCIAL LITERACY HAS BEEN INCORPORATED AS AN ESSENTIAL SKILL FOR PEOPLE TO POSSESS, YET SOMEHOW REMAINS SELECTIVE TO A CERTAIN DEMOGRAPHIC.

AS PHIL SHUMAN, THE DIRECTOR OF THE MONEYSMARTS PROGRAM AT INDIANA UNIVERSITY, COMMENTS: “FINANCES INHERENTLY—WHETHER OR NOT IT’S INCREDIBLY SHORT-TERM IN JUST BUYING LUNCH FOR THAT DAY OR LONG-TERM SAVING FOR RETIREMENT—HELP YOU ACCOMPLISH WHATEVER YOUR GOALS ARE.” FINANCIALLY LITERATE CONSUMERS CANNOT ONLY WELL-UNDERSTAND HOW THEY ARE, AND NEED TO, SPEND THEIR MONEY, BUT ALSO CAN KEEP ON EYE ON POTENTIAL COMPLEX AND SIMPLE ISSUES SUCH AS CREDIT CARD FRAUDS OR OVERSPENDING AND WILL KNOW HOW TO RESOLVE THEM. SOME OTHER WAYS FINANCIAL LITERACY CAN HELP YOU MAKE SMART DECISIONS INCLUDE: ESTABLISHING A CORRELATION BETWEEN HOW MUCH YOU EARN AND SPEND AND CAN CONSEQUENTLY HELP YOU MAKE INFORMED FINANCIAL DECISIONS; PROTECTING YOURSELF FROM DEBT AND BANKRUPTCY; SELECTING THE MOST SUITABLE RETIREMENT PLAN; SAVING EFFICIENTLY FOR SHORT-TERM AND LONGTERM GOALS. IN THE PANDEMIC, WHERE SOCIAL CONTACT HAS BEEN LIMITED AND SOCIAL MEDIA CONTACT, AND THE CONSEQUENT IMPULSE PURCHASES, MAXIMIZED, FINANCIAL LITERACY IS ALL THE MORE IMPORTANT. IN ADDITION TO THESE IMPULSE PURCHASES, HEFTY SANITARY SUPPLIES, MEDICAL TESTS, AND EVEN HOSPITAL BILLS HAVE HEAVILY INDENTED MANY OF OUR SAVINGS. THIS, IN COMBINATION WITH THE MASSIVE SURGES IN UNEMPLOYMENT OR DECREASES IN INCOME HAS LED MOST TO TURN TO INVESTING AND BUDGETING. HERE, FINANCIALLY ILLITERATE INDIVIDUALS FACED MOST DIFFICULTY IN COPING AS THEY COULDN’T ADEQUATELY RESORT TO THESE METHODS WITHOUT UNDERSTANDING THE COMPLEXITY OF THE PROCESSES. IN THIS MANNER, THE PANDEMIC HAS BEEN ESSENTIAL IN PROVING THE IMPORTANCE OF FINANCIAL LITERACY IN THE 21ST CENTURY, WITH UNFORTUNATELY LITTLE ACTION TO SHOW FOR IT. WHILST DEVELOPED COUNTRIES HAVE STARTED INTRODUCING FINANCIAL LITERACY INITIATIVES, DEVELOPING COUNTRIES HAVE SHOWN THE TENDENCY TO FOCUS MORE ON RELIEF EFFORTS, AN UNDERSTANDABLE CONCERN SINCE THEY SUFFERED NOT ONLY THE PANDEMIC BUT ALSO A LACK OF SUPPLIES. HOWEVER, THAT HAS LEFT THE FINANCIALLY DEVASTATED INDIVIDUALS THERE WITHOUT A LEG TO STAND ON. NEVERTHELESS, MORBID AS THE THOUGHT IS, THE PANDEMIC HAS PROVEN THE MOST EFFECTIVE LESSON IN TERMS OF ASSERTING THE SIGNIFICANCE OF FINANCIAL LITERACY, AND IT SEEMS AS IF POST-PANDEMIC BURDENS WILL BE MUCH REDUCED BECAUSE OF THESE REALIZATIONS.

Learning How To Budget WRITTEN BY: LUNA KENTJANADJAJA EDITED BY: AIMAN ADEEL

A BUDGET IS A STRATEGY FOR EVERY INCH OF CURRENCY YOU HAVE, AN AMOUNT OF MONEY SET ASIDE FOR A CERTAIN PURPOSE AND FUTURE SPENDING. IT MEANS MORE FINANCIAL FREEDOM AND A LESS STRESSFUL EXISTENCE. WHEN IT COMES TO THE HOW-TO’S, EVERYONE IS ALLOWED TO DO WHATEVER THEY WANT BASED ON WHAT THEY FEEL SUITS THEM BEST, BUT AMONGST THE MOST COMMON AND COMFORTABLE WAYS OF BUDGETING ARE MAKING TIMETABLES AND CALENDARS TO KEEP AN EYE ON DAILY AND MONTHLY SPENDINGS. CREATING A BUDGET, HOWEVER, IS NO EASY AFFAIR. THE 50/30/20 APPROACH, WHICH DIVIDES YOUR INCOME INTO THREE KEY CATEGORIES: 50 PERCENT FOR REQUIREMENTS, 30 PERCENT FOR DESIRES, AND 20 PERCENT FOR SAVINGS AND DEBT REPAYMENT, IS ONE TECHNIQUE PEOPLE MAY ATTEMPT. OVER TIME, SOMEONE WHO ADHERES TO THESE STANDARDS WILL HAVE MANAGEABLE DEBT, THE ABILITY TO SPLURGE ON OCCASION, AND ENOUGH MONEY TO COVER IRREGULAR OR UNEXPECTED COSTS AND RETIRE COMFORTABLY. THE 50/30/20 BUDGET INVOLVES THE FOLLOWING: 1. SETTING ASIDE UP TO 50% OF YOUR INCOME FOR NECESSITIES: THIS MONEY IS UTILIZED FOR THINGS LIKE FOOD, CHILD CARE, HOUSING, TRANSPORTATION, INSURANCE, AND LOAN PAYMENTS, AMONG OTHER THINGS. 2. SETTING ASIDE 30% OF YOUR SALARY TOWARDS DESIRES: DINNERS OUT, GIFTS, VACATIONS, AND ENTERTAINMENT ARE ALL WAYS PEOPLE SPEND ON HOBBIES AND DESIRES. BUT DETERMINING WHICH OF YOUR AMBITIONS CAN WAIT UNTIL YOU HAVE SOME MONEY OR YOUR BILLS ARE UNDER CONTROL IS AN IMPERATIVE STEP YOU HAVE TO TAKE IN THE PROCESS. HOWEVER, YOUR BUDGET SHOULD NOT BE SO LIMITED THAT YOU ARE UNABLE TO PURCHASE SOMETHING PURELY FOR ENJOYMENT. 3. SET ASIDE 20% OF YOUR INCOME FOR SAVINGS AND DEBT REDUCTION. PREPARE FOR THE UNEXPECTED, SAVE FOR THE FUTURE, AND PAY OFF DEBT USING 20% OF YOUR AFTER-TAX INCOME. CONSIDER THE BIG PICTURE; FOR EXAMPLE, YOU MAY ALTERNATE BETWEEN SAVING AND DEBT REPAYMENT TO MEET YOUR MOST ESSENTIAL GOALS.

ASIDE FROM THIS GOAL, AN EMERGENCY SITUATION MAY ARISE ON SEVERAL OCCASIONS. TO AVOID BEING OVERBURDENED BY THIS ISSUE, DIVIDE YOUR EXPENDITURES INTO TOP PRIORITIES: 1. A FIRST-TIME EMERGENCY FUND; MANY EXPERTS RECOMMEND SAVING ENOUGH FOR SEVERAL MONTHS OF BARE-BONES LIVING EXPENSES. STARTING WITH A $500 EMERGENCY FUND — ENOUGH TO COVER SMALL EMERGENCIES AND REPAIRS — AND WORKING YOUR WAY UP FROM THERE IS A GOOD PLACE TO START. WHEN YOU GET AN EMPLOYER MATCH ON YOUR 401(K) PLAN, IT MEANS YOU'RE INVESTING IN TAX-ADVANTAGED FUNDS. IF YOUR WORKPLACE OFFERS A MATCHING CONTRIBUTION, BE SURE YOU CONTRIBUTE ENOUGH TO RECEIVE THE FULL ADVANTAGE. 2. DEBT THAT IS TAINTED: ONCE YOU'VE RECEIVED A 401(K) MATCH, IF ONE IS AVAILABLE, GO AFTER THE TOXIC DEBT IN YOUR LIFE: HIGH-INTEREST CREDIT CARD DEBT, PERSONAL AND PAYDAY LOANS, TITLE LOANS, AND RENT-TO-OWN PAYMENTS. ALL HAVE SUCH HIGH INTEREST RATES THAT YOU END UP REPAYING DOUBLE OR THREE TIMES WHAT YOU BORROWED. 3. SET MONEY AWAY FOR RETIREMENT. AFTER YOU'VE PAID OFF ANY HAZARDOUS DEBT, THE NEXT STEP IS TO SET YOURSELF UP FOR RETIREMENT. AIM TO SAVE 15% OF YOUR GROSS SALARY, INCLUDING ANY COMPANY MATCH, IF APPLICABLE. IF YOU'RE YOUNG, AFTER YOU'VE TAKEN ADVANTAGE OF THE EMPLOYMENT MATCH, CONSIDER STARTING A ROTH IRA. ONCE YOU'VE MAXED OUT YOUR IRA CONTRIBUTIONS, SWITCH OVER TO YOUR 401(K) AND MAX OUT YOUR CONTRIBUTION THERE AS WELL. 4. MAINTAIN AN EMERGENCY FUND, AS WELL AS MAKING MONTHLY DONATIONS, CAN HELP YOU ACCUMULATE ENOUGH MONEY FOR THREE TO SIX MONTHS OF LIVING EXPENSES. YOU SHOULD NOT EXPECT CONTINUOUS PROGRESS SINCE CRISES WILL ARISE, BUT WITH THIS YOU WILL BE ABLE TO DEAL WITH THEM. 5. DEBT REPAYMENT REFERS TO PAYMENTS THAT GO ABOVE AND ABOVE THE BASIC MINIMUM REQUIRED TO PAY OFF YOUR REMAINING DEBT. IF YOU'VE ALREADY PAID OFF YOUR HIGHEST-INTEREST DEBT, YOU'RE GENERALLY LEFT WITH LOWER-INTEREST, FREQUENTLY TAX-DEDUCTIBLE DEBT (SUCH AS YOUR MORTGAGE). TAKE ON THEM ONLY AFTER YOU'VE GOTTEN ALL OF YOUR OTHER FINANCIAL DUCKS IN A ROW. 6. CONSIDER PUTTING MONEY ASIDE IN YOUR OWN NAME FOR NON-EMERGENCY NEEDS SUCH AS A NEW ROOF OR A NEW CAR. THESE EXPENSES ARE UNAVOIDABLE, THEREFORE IT IS ADVISABLE TO SAVE FOR THEM RATHER THAN BORROW FOR THEM.

Starting Finance at School WRITTEN BY: GWEN NICOLE EDITED BY: AIMAN ADEEL

FINANCIAL LITERACY IS SO IMPORTANT FOR OUR FUTURE AS ADULTS, WHERE WE HAVE TO HANDLE TAXES, REGISTER FOR INSURANCES, AND YET NATIONAL SURVEYS SHOW THAT YOUNG ADULTS POSSESS THE LOWEST LEVELS OF FINANCIAL LITERACY. THIS IS REPRESENTATIVE OF HOW PEOPLE DEEMED IT WAS UNNECESSARY TO TEACH THE YOUNGER GENERATION ABOUT FINANCES. FINANCE CAN BE DEFINED AS THE MANAGEMENT, CREATION, OR STUDY OF MONEY AND INVESTMENTS. MEANWHILE, FINANCIAL LITERACY IS THE POSSESSION OF A SET OF SKILLS AND KNOWLEDGE THAT ALLOWS AN INDIVIDUAL TO MAKE INFORMED AND EFFECTIVE DECISIONS WITH ALL OF THEIR FINANCIAL RESOURCES. KNOWING THIS, WE MUST ASK OURSELVES, WHY IS IT THAT THE FINANCIAL LITERACY RATE IS SO LOW IN THE WORLD? THERE ARE A FEW POSSIBLE REASONS AS TO WHY THAT IS THE CASE, SUCH AS THE LACK OF EDUCATION PROVIDED REGARDING FINANCIAL LITERACY BECAUSE SELDOM DO SCHOOLS REGARD IT TO BE IMPORTANT ENOUGH TO BE A COMPULSORY COURSE IN THEIR CURRICULUM. FOR PEOPLE WHO DO POSSESS FINANCIAL LITERACY, THEY DEEM IT UNIMPORTANT TO TEACH THEIR CHILDREN ABOUT MONEY. EITHER THAT OR THEY THINK IT’S RISKY FOR CHILDREN TO MANAGE MONEY, LET ALONE, TEACHING THEM HOW TO INVEST WITH HUGE AMOUNTS OF MONEY.

BANKS REQUIRE AN ENORMOUS INVESTMENT TO BE BUILT. THIS IS WHY THEY’RE ONLY BUILT IN THE BIG CITIES, SELDOM ON THE OUTSKIRTS OF TOWN. THIS CAUSES THE PEOPLE WHO LIVE IN THE URBAN AREA TO HAVE LESS ACCESS TO BANKS AND LESS REGARD FOR FINANCES AND FINANCIAL LITERACY. FINANCIAL LITERACY, LIKE MANY OTHER THINGS, IS NURTURED FROM A YOUNG AGE. AS THE WORLD IS GETTING MORE AND MORE COMPLEX TO ADAPT WITH TECHNOLOGICAL ADVANCES, FINANCIAL TRANSACTIONS ARE ALSO TURNING INTO A COMPLICATED SYSTEM, TO THE POINT THAT FINANCIAL LITERACY IS CRUCIAL TO HAVE A STABLE LIFE. HOW CAN WE START? OR RATHER, HOW CAN WE INVITE CHILDREN TO START TO LEARN FINANCIAL LITERACY AT SCHOOL? AS AFORE-MENTIONED, THERE ARE A LOT OF PROBLEMS THAT NEED TO BE OVERCOME TO SMOOTHLY LEARN FINANCIAL LITERACY. THOUGH THERE ARE MORE OBSTACLES TO OVERCOME, SUCH AS LACK OF POLITICAL WILL, LACK OF RESOURCES AND MATERIALS, OVERCROWDED CURRICULA, AND INSUFFICIENT EXPERTISE, IT IS UNDENIABLY MEANT TO FORM AN INDISPENSABLE CORE OF STUDENT CURRICULA AND MUST BE PUSHED FOR.

THESE ARE THE GUIDELINES THAT ARE MADE BY THE OECD (ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT)/INFE(INTERNATIONAL NETWORK ON FINANCIAL EDUCATION): THE FINANCIAL EDUCATION CURRICULUM SHOULD BE BLENDED TOWARDS AN EXISTING NATIONAL STRATEGY TO PROPERLY COORDINATE WITH EACH OTHER. DURING ANY PARTNERSHIPS OR WORKING GROUPS BETWEEN STAKEHOLDERS, THERE SHOULD BE A PROPER LEADING PUBLIC AUTHORITY AND THE SCHOOL SYSTEM SHOULD ALSO BE INVOLVED IN ORDER TO COORDINATE BETTER IN APPLYING THE STRATEGY. REQUIRED SUPPORT FROM DIFFERENT STAKEHOLDERS IN DIFFERENT FORMS, EITHER FINANCIAL SUPPORT OR NON-FINANCIAL ONES. THE CONTENT OF ANY MATERIAL AND PHYSICAL ENVIRONMENTS USED FOR FINANCIAL EDUCATION TRAINING SHOULD BE BALANCED, IMPARTIAL, UNBIASED, AND NOT LINKED TO THEIR COMMERCIAL PRIORITIES TEACHERS SHOULD BE ADEQUATELY TRAINED ABOUT THE SUBECT KNOWLEDGE, POSSESS SUFFICIENT TEACHING SKILLS, AND CONDUCT ANY DIRECT INTERVENTIONS IN THE CLASS (UNDER THE OVERSIGHT OF AND IN COLLABORATION WITH THE SCHOOL TEACHING/MANAGEMENT STAFF).

ALL INFORMATION, AWARENESS, AND EDUCATION RESOURCES THAT ARE TAUGHT SHOULD BE TAILORED TO THE NATIONAL CONTEXT, APPROPRIATE FOR THE TARGET AUDIENCE, FAIR IN ADDRESSING ALL RELEVANT POPULATIONS, ACCURATE, AND ALSO EASILY ACCESSIBLE TO INDIVIDUALS. STUDENT’S PROGRESS SHOULD BE MONITORED AND PROPERLY EVALUATED, WHERE THE RESULTS SHOULD BE SHARED PUBLICLY.

LEARNING HOW TO INVEST WRITTEN BY: KATSURI TALE EDITED BY: AIMAN ADEEL LEGENDARY INVESTOR WARREN BUFFETT DEFINES INVESTING AS “THE PROCESS OF LAYING OUT MONEY NOW IN THE EXPECTATION OF RECEIVING MORE MONEY IN THE FUTURE.” IN THIS ARTICLE, WE’LL TAKE YOU THROUGH A ROUGH GUIDE ON INVESTING FOR BEGINNERS. THE FIRST STEP IS TO DO YOUR RESEARCH. BEFORE YOU BEGIN INVESTING, YOU SHOULD BE WELL-VERSED WITH THE WORLD OF INVESTMENT. MAKE SURE YOUR INFORMATION COMES FROM A RELIABLE SOURCE; ALL INFORMATION ONLINE CANNOT BE TRUSTED. TALK TO PEOPLE WHO ARE FAMILIAR WITH INVESTING, AND TAKE ADVICE ONLY FROM THE EXPERIENCED. THE MARKET IS VERY UNPREDICTABLE; NO ONE CAN BE SURE OF WHAT WILL HAPPEN. THE SECOND STEP IS TO OPEN A BROKERAGE ACCOUNT ONLINE. WHEN OPENING A BROKERAGE ACCOUNT, AN ONLINE BROKER WILL ASK YOU ABOUT YOUR INVESTMENT GOALS AND WHAT LEVEL OF RISK YOU’RE WILLING TO TAKE. SOME INVESTORS WANT TO TAKE AN ACTIVE HAND IN MANAGING THEIR MONEY’S GROWTH, WHILE OTHERS PREFER TO “SET IT AND FORGET IT”. MORE TRADITIONAL ONLINE BROKERS, LIKE THE TWO MENTIONED ABOVE, ALLOW YOU TO INVEST IN STOCKS, BONDS, EXCHANGE-TRADED FUNDS, ETC. DISCOUNT ONLINE BROKERS GIVE YOU TOOLS TO SELECT AND PLACE YOUR OWN TRANSACTIONS, AND MANY OF THEM ALSO OFFER A SET-IT-AND-FORGET-IT ROBOADVISORY SERVICE.

AS THE SPACE OF FINANCIAL SERVICES HAS PROGRESSED IN THE 21ST CENTURY, ONLINE BROKERS HAVE ADDED MORE FEATURES, INCLUDING EDUCATIONAL MATERIALS ON THEIR SITES AND MOBILE APPS. ALTHOUGH THERE ARE A NUMBER OF DISCOUNT BROKERS WITH VERY LOW MINIMUM DEPOSIT RESTRICTIONS, YOU MAY BE FACED WITH OTHER RESTRICTIONS. THIS IS SOMETHING THAT AN INVESTOR SHOULD TAKE INTO ACCOUNT IF THEY WANT TO INVEST IN STOCKS. MANY FINANCIAL INSTITUTIONS HAVE MINIMUM DEPOSIT REQUIREMENTS. IN OTHER WORDS, THEY WON’T ACCEPT YOUR ACCOUNT APPLICATION UNLESS YOU DEPOSIT A CERTAIN AMOUNT OF MONEY. SOME FIRMS WON’T EVEN ALLOW YOU TO OPEN AN ACCOUNT WITH A SUM AS SMALL AS $1,000. IT PAYS TO SHOP AROUND SOME AND CHECK OUT OUR BROKER REVIEWS BEFORE DECIDING WHERE YOU WANT TO OPEN AN ACCOUNT. ONCE YOU BEGIN INVESTING, YOU NEED TO BE WELL AWARE OF THE RISKS THAT COME WITH IT. ESSENTIALLY ALL INVESTING COMES WITH AT LEAST SOME DEGREE OF RISK: IT IS ALWAYS POSSIBLE THAT THE VALUE OF YOUR INVESTMENT WILL NOT INCREASE OVER TIME. FOR THIS REASON, A KEY CONSIDERATION FOR INVESTORS IS HOW TO MANAGE THEIR RISK IN ORDER TO ACHIEVE THEIR FINANCIAL GOALS, WHETHER THEY ARE SHORT- OR LONG-TERM. IT IS POSSIBLE TO INVEST IF YOU ARE JUST STARTING OUT WITH A SMALL AMOUNT OF MONEY. IT’S MORE COMPLICATED THAN JUST SELECTING THE RIGHT INVESTMENT (A FEAT THAT IS DIFFICULT ENOUGH IN ITSELF), AND YOU HAVE TO BE AWARE OF THE RESTRICTIONS THAT YOU FACE AS A NEW INVESTOR.

Tips for Saving Your Money WRITTEN BY: YVONNE RENNESIA GULO EDITED BY: AIMAN ADEEL MONEY. NOWADAYS, IT’S HARD FOR PEOPLE TO SAVE MONEY BECAUSE THEY BUY UNNECESSARY ITEMS. HERE ARE SOME WAYS YOU CAN REDUCE THE AMOUNT OF MONEY YOU SPEND. 1. GET DISCOUNTS ON ENTERTAINMENT IT’S IMPORTANT TO ENTERTAIN OURSELVES, BUT WE SHOULD KNOW OUR MONETARY LIMITS. TRY TO FIND INFORMATION ABOUT PUBLIC PLACES THAT PROVIDE DISCOUNTS, FREE TICKET PASSES, EVENTS, FREE PARKING AREAS, ETC. YOU CAN ALSO ASK ABOUT DISCOUNTS FOR SENIORS, STUDENTS, MILITARY PERSONNEL AND OTHER SPECIALIZED CATEGORIES SUCH AS THESE. 2. RESTRICT ONLINE SHOPPING IN THE MODERN ERA, ONLINE SHOPPING HAS BECOME ONE OF THE GREAT OPTIONS FOR GOING SHOPPING BECAUSE IT IS MORE EFFICIENT AND TIME-SAVING. HOWEVER, THIS EASE OF ACCESS MAY LEAD TO SHOPPING SPLURGES. THEREFORE, IT IS ENTIRELY UP TO YOU TO BE MORE CONSIDERATE OF WHAT YOU BUY AND HOW OFTEN YOU BUY. 3. MONITOR YOUR ELECTRIC BILL

BY MONITORING YOUR ELECTRIC BILLS, YOU CAN ENSURE THAT YOU DON’T OVERINDULGE IN ELECTRICITY AND THEREFORE, DON’T HAVE TO PAY EXUBERANT AMOUNTS FOR ITS BILLS.

4. OPT FOR SHARED LIVING SPACE

BY SPLITTING THE RENT MONEY WITH SOMEONE ELSE, YOU CAN BE MORE EFFICIENT AND EFFECTIVE IN SAVING MONEY. YOU MAY ALSO BE ABLE TO SPLIT THE UTILITY BILLS AND THE COST OF ANY SHARED FURNITURE, SAVING YOURSELF EVEN MORE MONEY EACH MONTH. 5. SET SAVING GOALS

BY SETTING YOUR GOALS IN LINE WITH HOW MUCH MONEY YOU HAVE, YOU CAN KEEP A CAREFUL EYE ON HOW MUCH WE HAVE ALREADY SAVED AND SPENT. 6. DON'T GO OUTSIDE ON AN EMPTY STOMACH REMEMBER TO EAT FOOD BEFORE GOING SHOPPING OR OUTSIDE, AS ONCE YOU EXPEND ENERGY IN THESE TASKS, YOU’LL MOST LIKELY FEEL HUNGRY AND A DESIRE TO INDULGE IN OUTSIDE FOOD.

BY EATING BEFORE LEAVING HOME, YOU CAN AVOID EXTENSIVE SPENDING THROUGH THIS METHOD AS WELL. THESE TIPS, ALBEIT ONLY MINOR, CAN BE INSTRUMENTAL IN SAVING AND SPENDING REASONABLY AND SUSTAINABLY AS AN INDEPENDENT, BEING AREAS THAT MOST PEOPLE EXPEND AND WASTE MOST AT. THEREFORE, YOU CAN START BY TAKING THESE STEPS IF YOU FEEL UNCOMFORTABLE OF HOW MUCH YOU’RE SPENDING, IN ORDER TO HAVE SOME MONEY LEFT BY THE END OF THE MONTH TO GO INTO YOUR SAVINGS.

Bibliography ARTICLE: THE IMPORTANCE OF FINANCIAL LITERACY IN THE MODERN WORLD (PAGE 4) WHY FINANCIAL LITERACY IS SO IMPORTANT 7 EXPERT PERSPECTIVES ON WHY FINANCIAL LITERACY IS IMPORTANT WHAT IS FINANCIAL LITERACY AND WHY IS IT IMPORTANT? - EXPERIAN THE IMPORTANCE OF FINANCIAL LITERACY IN A PANDEMIC AND POSTPANDEMIC SOCIETY | UNICEF CANADA: FOR EVERY CHILD ARTICLE: LEARNING HOW TO BUDGET (PAGE 6) HOW TO CREATE A BUDGET IN 6 SIMPLE STEPS YOUR GUIDE TO HOW TO BUDGET MONEY NERDWALLET

ARTICLE: STARTING FINANCE AT SCHOOL (PAGE 8) FINEDSCHOOL_WEB.PDF OECD/INFE GUIDELINES FOR PRIVATE AND NOT-FOR-PROFIT STAKEHOLDERS IN FINANCIAL EDUCATION ARTICLE: LEARNING HOW TO INVEST (PAGE 11) HOW TO INVEST IN STOCKS: QUICK-START GUIDE FOR BEGINNERS - NERDWALLET HOW TO START INVESTING IN STOCKS: A BEGINNER'S GUIDE ARTICLE: TIPS FOR SAVING YOUR MONEY (PAGE 13) HOW TO SAVE MONEY: 22 PROVEN WAYS NERDWALLET 12 WAYS TO SAVE MONEY ON A COLLEGE STUDENT BUDGET — N26

Newsletter Credits CONTENT CREATORS AIMAN ADEEL ALLICE XU GWEN NICOLE JUSTINE HO KATSURI TALE LUNA KENTJANADJAJA YVONNE RENNESIA GULO GRAPHIC DESIGNERS AND ILLUSTRATORS ADAYA HEAD AKSHAYA K ANNA KHUSHI KOLTE

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