MSFC : ĠEMMA 2021 : IN ENGLISH

SPECIAL SUPPLEMENT EDITION NO 3

ĠEMMA The Government’s Strategic Orientation towards Financial Capability

ĠEMMA Our Social Media tools

ĠEMMA All About Scams

FAMILJA SPECIAL SUPPLEMENT |

NOVEMBER, 2021

FAMILJA

THE GOVERNMENT’S STRATEGIC ORIENTATION TOWARDS FINANCIAL CAPABILITY Whilst, a new Strategy is now drafted, the fundamentals of the vision, competencies and skill domains, etc. remain the same. These are presented in the table below.

VISION Improve the financial capability of Maltese citizens during life-events and retirement and in doing so, empowering them to reach better informed financial decisions that fit their personal circumstances.

CORE KNOWLEDGE AND SKILLS DOMAINS Budgeting & planning

Managing savings

Managing debt

Saving for a rainy day

Planning for the future

Understanding the financial landscape

Protecting oneself and others from financial abuse

Understanding one’s rights vis-a-vis financial products

Digital Finance

STRATEGIC PATHWAYS Research and Evaluation

Education

Outreach and Communications

Strategic Partnerships

Youth

Adults

Retirees

STADJI TAL-ĦAJJA Children

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NOVEMBER, 2021

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WHAT IS

ĠEMMA? ĠEMMA : Know, Plan, Act is the is the government’s platform on financial capability education and knowledge aimed at assisting Maltese and Gozitans in their own or family financial managment independently from their age, class and position, from students to pensioners.

You can make fantastic healthy meals on budget. Visit our healthy food on a budget video series by the ĠEMMA Chef Neil Darmanin – and follow the GEMMA unbelievable recipes.

gemma.gov.mt/videos/

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NOVEMBER, 2021

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ĠEMMA

ĠEMMA

KNOW, PLAN, ACT >

ĠEMMA : ALL ABOUT SCAMS

ĠEMMA’s central message explained

KNOW The better informed you are on financial matters the more likely it is that you will make sensible financial decisions. Having access to knowledge and learning tools on financial capability matters helps you reach the right financial decision that reflect your personal circumstances.

PLAN Being knowledgeable on financial capability matters allows you to plan ahead for the quality of life desired during your life journey – and how financial decisions allow you to reach your life goals.

ACT Once you are more financially capable and hence you are better positioned to plan you can now confidently take the financial decisions that are appropriate to your life journey and circumstances.

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NOVEMBER, 2021

You heard of the many scams carried out in 2021, such as: romance, phishing, smishing, mobile, business email compromise scams amongst others. Do you, and your kids, know how to identify a scam? How to protect yourself? What action to take if you are scammed? Visit the ĠEMMA series of Little Black Books on Scams and Fraud as well as our infographics on scam protection measures drawn up with our strategic partner, the eSkills Malta Foundation, by clicking on the picture below.

FAMILJA

ĠEMMA

TIPS ON TEACHING YOUR CHILDREN ABOUT MONEY MANAGEMENT As parents we all want the best for our children and strive to give them everything a parent can give them. All of us wish to support our children as they grow up. Nevertheless, as a parent, the best thing you can do for your children is to give them the knowledge to manage money responsibly. And teaching financial responsibility at home is definitely one of the most important ways to achieve this. Here are some important ĠEMMA tips for you to follow.

Early Years: 3 to 4 years of Age THROUGH PLAY Children love playing shop. Make it as real as possible for your kid, adding price tags to items to show that things cost money.

Show your kid the difference between coins. Explain, for example, that two €0.5 coins = a €1.0 coin, etc.

Use real coins to help your kid learn that money isn’t just play. Let them handle coins and get used to money.

AT THE SHOP OR SUPERMARKET Have your kid help you plan what you need to buy, for example, what ingredients you need to make their favourite meal.

Make a shopping list together. This will help you to talk to your kid about saving money.

Break the list into things that you need, and things that you want, such as treats (ice-cream, for example).

Ask your kid to help you to pay. If paying by cash, give them the money to pay the cashier.

Junior Primary: 5 to 7 years of Age THROUGH SAVING At this age, your kid starts to understand the idea that you have to save money for things. Set a target for him or her to plan towards something small, and save together using a jar or a moneybox.

Talk about ways to save money, such as turning off lights or buying fewer things. Ask your kid to help you come up with ideas to save.

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NOVEMBER, 2021

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AT THE SHOPS Explain to your kid that a branded product and a similar non branded product are likely to have the same features and the latter also being of good quality – smart phones and other electronic devices are a good example to use.

Introduce your kid to the concept of value of money. money-management skills with your kid.

In doing so, discuss purchasing decisions and

TV AND ADVERTISING Talk to your kid about the influence of advertising, and that what is shown in an advert may not necessarily be the full story. Look for examples of how advertisers try to build brand loyalty in kids. Talk about cross-marketing - how the release of a new kids’ movie is usually preceded by a huge marketing campaign involving tie-in toys, fast food, etc. Help your kids notice and question marketing messages so that s/he is better able to respond to advertising rather than just react to it.

8 to 11 Years: Senior Primary A good way to help your kids learn how to handle money on their own is by giving them pocket money and a monetary award when they help in family chores.

Open a savings account for your kid. Sit down with them and together set financial goals towards which kids are to save for – through pocket money, additional chores, monetary gifts on birthdays and special days such as Xmas. Every so often take your kids to deposit the money into their account. Assist them in tracking their savings.

Allow your kids to spend their money as they choose, though within guidelines that you set. If your kid wants to spend his/her entire allowance on an expensive toy that s/he thinks s/he must have (instead of several smaller items), let them do so. Kids need to be allowed to make mistakes so that they learn from them.

Your child may ask for a loan or an increase in allowance and you may be tempted to give in. However, the child will never learn how the real world works – or how to live within his/her means – if you keep giving in.

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NOVEMBER, 2021

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ĠEMMA

PLAY THE ĠEMMA MONEY MONSTER GAME WITH YOUR KIDS: 6 TO 11 YEAR OLDS

The ĠEMMA Money Monster Game was created by a team of three final year university students. ĠEMMA partnered with the Department of Artificial Intelligence at the University of Malta to introduce digital financial education games. ĠEMMA was also assisted by the Directorate for Learning Assistance and Programmes within the Education Division.

The objective of the game is to teach your kids certain money management concepts such as prioritising needs and wants, earning an income, budgeting and so on. The ĠEMMA money monster game revolves around a Monster called Nugget who is taken across a life journey experience from the age of 18 until retirement age of 65 year of age.

Throughout Nugget’s life journey, many money decisions will need to be taken which will affect how your kid progresses through the game. Each action taken has an impact on Nugget’s life which gives children the opportunity to learn from their decisions which result in different outcomes. Money Monsters is a fun way of teaching your kid money management.

gemma.gov.mt/financial-educationplanning-framework-from-5-11-years/

Play the ĠEMMA Money Monster Game with your kid and explain to him/her the outcomes of his/her money decisions. Download lesson plans on various facets of the game so that you educate your kid on financial capability in a flexible and fun manner.

Download the Android App https://play.google.com/store/apps/details?id=com.D efaultCompany.MoneyMonsters Play the Web version of the Game https://gemma.gov.mt/moneymonsters/ To download the Money Monster Game Manual https://gemma.gov.mt/wp-content/uploads/2021/05/ MM-Guidebook-English.pdf

Are you self-employed? If you were born in 1962 or after, do you know how the pension system works in your regard? Are you thinking of getting a voluntary private pension plan? And do you know how this works? Are are you familiar with the jargon used in private pension plans? Visit our eBooks section to find out about these matters and more.

gemma.gov.mt/ebooks/

PG 07 | FAMILJA SPECIAL SUPPLEMENT |

NOVEMBER, 2021

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ĠEMMA

WATCH THE ĠEMMA FTIT 2 INTERACTIVE PLAY EDUCATIONAL VIDEO ĠEMMA introduces its ĠEMMA Ftit 2 Interactive play. This play is designed together with the Directorate for Learning Assistance and Programmes within the Education Division. The game is directed towards children from Level 9 to upper secondary school. The play centres around two siblings and their teenage friends.

In this interactive play, Rodianne and Daniel discuss their ideas of how to use their free time and whether they should just enjoy it or take up some work so that they can earn some money. One of the things Rosianne and Daniel discuss is what the extra money earned should be spent on. Daniel wants to buy the latest branded mobile gizmo; Rodianne too wants to buy a mobile that allows her to do all of the important things that a mobile should do – access the Internet, phone, text, download Apps., etc. without busting her hard earned money. Karl, employed, is set on buying a 4 x 4 SUV car and is ready to sacrifice all other spending.

Watch the ĠEMMA FTIT 2 Interactive Play Video with your kid. Discuss with your son/daughter the financial decisions being taken by Rodianne, Daniel and Karl.

Who is budgeting and setting financial goals? Who is using the money wisely? Who is thinking for his or her future needs? Walk through Rodianne, Daniel and Karl respective decisions and why some decisions are correct and others not.

watch the ĠEMMA FTIT 2 Interactive Play youtube.com/watch?v=pw4tHgRl5fM

We can assist in matters such as: pensions, retirement, saving money, budgeting, debt management, financial terminology and much more...

Review our Frequently Asked Questions below, or submit your own question

gemma.gov.mt/freqently-asked-questions/

PG 08 | FAMILJA SPECIAL SUPPLEMENT |

NOVEMBER, 2021

FAMILJA

ĠEMMA

DO YOU BUDGET? TAKE ĠEMMA’S ADVISE AND START DOING SO. A budget is a written plan that helps you know how much money you have coming in and what you need to spend it on. It helps you keep track of what you are spending. In your budget you capture: Your income – how much money you have coming in and where it comes from (for example, wages or allowances); Your expenses – how much money you spend and on what you spend the money (for example; bills, food and school fees).

It is important that you take charge of your money so that you: o o o o o o

Do not find yourself living from one wage to the next.

Ease money stress and stay on top of your bills.

Pay for the things you need such as food and your energy bills.

Prepare for emergencies and unplanned expenses.

Save for something special.

Direct your money to where it matters most.

You may ask, What is a rainy day you with peace of mind. When a crisis hits — large or small — your fund? finances will not add to your stress It is a financial safety net that levels as you have a buffer in place, protects you when something and so you can get on with what unexpected happens. Imagine, your needs to be done. You have a car’s clutch just conks out on you. financial safety net. It protects you How do you deal with this situation? from dipping into other savings accounts, allowing you to stay on Option 1: You have no money and target with all of your budgeting your credit cards are maxed. Hence, and saving goals. you are without a car until you can How do you start to build a rainy afford to repair it. day fund?

Option 2: Your savings are committed. So you max your credit ĠEMMA suggests that you start card to fix the clutch. A new monthly putting aside a small amount of financial burden as you pay the money each month – depending on what you earn, kick off with credit with interest. something like €25 to €50 a month.

Option 3: You dip in your savings We recommend that you set up a account to pay off the costs. Your standing order with your bank, so financial goals for which you are that money goes to your fund immediately when your pay cheque saving need a re-think. comes in. If the opportunity arises, Option 4: Independent of other try to increase that amount. Save in savings, every month you put aside the rainy day fund until you reach another sum to build this rainy day your target. fund. The rainy day fund provides

The question now is: What is the target money value of your rainy day fund?

Well – whilst you want to pay an unexpected repair, it is important that the fund has enough money to cover you for a number of months in the event that you end up in a sticky situation. The amount of Euros you put in your rainy day fund reflects your personal circumstances. There is no right or wrong answer. As a minimum, ĠEMMA recommends that your rainy day fund should give you a solid financial cushion of three months – and ideally, you should target for six months.

Download ĠEMMA Budget Planner App: mobilefinapp.gov.mt/Gemma/budgetPlanner/ Manual to use the Mob. App. : gemma.gov.mt/wp-content/uploads/2020/03/gemma-budget-planner-guide-Responsive-Website-Tool-V1.0-260220.pdf

PG 09 | FAMILJA SPECIAL SUPPLEMENT |

NOVEMBER, 2021

FAMILJA

ĠEMMA

ĠEMMA

ARE YOU THINKING OF TRAVELLING? ARE YOU PLANNING A WEDDING? Have you started thinking what Xmas presents you will buy? Do you know what the Latte Affect is and how much this costs you annually? Use the ĠEMMA calculators to help you better understand financial concepts, plan better and make informed choices.

WATCH THE ĠEMMA and Central Bank of Malta Video on why a Rainy Day Fund is important.

youtube.com/watch?v=1RMm-nMsVns

gemma.gov.mt/resources/calculators/

ĠEMMA

OUR SOCIAL MEDIA TOOLS

You will find ĠEMMA on the following social media channels: www.gemma.gov.mt www.facebook.com/gemma.know.plan.act www.linkedin.com/company/retirement-and-financial-capability-malta/?viewAsMember=true www.youtube.com/channel/UCBYOWljTOp15RLgNXUu1h7Q/videos

LIKE OUR PAGE ON FACEBOOK ĠEMMA

OUR STRATEGIC PARTNERS ĠEMMA has strategic relationships with 14 partners. The objectives of these strategic partnerships is to work together on financial capability initiatives. These strategic partnerships allow ĠEMMA to extend its reach by disseminating knowledge and resources on its partners’ members.

PG 10 | FAMILJA SPECIAL SUPPLEMENT |

NOVEMBER, 2021

ARE YOU INTERESTED IN BEING UPDATED ABOUT SERVICES, BENEFITS AND INITIATIVES OFFERED BY THIS MINISTRY? CLICK ON THIS LINK BELOW AND FILL OUT THE FORM PROVIDED

familja.gov.mt