Financial Literacy

Curriculum

Fundamentals to
Financial Literacy
Agenda/Contents
Session overview
Let’s get started
This introductory session will provide you with the
1. Getting Started fundamental principles to managing your money. It
will encourage you to consider what is financially
– When should I start? important to you, both now and in the future, and
enable you to approach your finances with
2. Fundamental Principles confidence.

– Need vs Want

– Understanding your priorities Objectives

– The savings challenge You will be able to:

– Keeping track of your budgets ● Understand how to approach your

own finances
– The power of doing your homework ● Consider your future goals
● Build your confidence with
3. Wrap up and reflection managing your own money

Employability Skills Toolkit

PwC 2
When should I start?
It’s never too early and starting early in life is ideal, but financial literacy will apply throughout your life.

• Managing your own money is something you need to do throughout your life - you are probably doing
it already.
• Here are some typical examples of when might have a new experience of managing your money:
– As a child - getting pocket money and keeping a piggy bank, or even gifts from relatives
– As a teenager - getting a weekend job to give you some extra spending money
– Going to university or when going travelling
– Getting your first full-time job
– Buying your first car or home, or having a child
– Throughout your working life and balancing home, family, friends and work
– If times become financially difficult
– Even when you retire when your pension will need to support your life
• So it is important to understand a few fundamental principles to guide you through various life
situations. These will not be everything but are there to get you to think about your approach and
behaviour towards them.

Employability Skills Toolkit

PwC 3
Need vs Want
Before committing your money, take a step back and ask, “do I really need it? or do I just want it?”

• Careful not to fall into traps that lure you into buying more than you really need!
– For example, 3 for £5 offers. Some of these offers only actually save you a few pennies and
encourage you to buy within a limited range of items.
• Take advantage of offers such as ‘3 for 2’ IF it’s something you will be buy again next week/month.
– But if you only need 1, stocking up 3 times more than you intended might not be the best idea.
• How important is the “label”? Branding is powerful and often VERY expensive. Consider if it’s
worth it and whether it is what you are really looking for - e.g. Do you need a jacket or a designer
jacket? The difference can be quite costly!
– If you have a budget to spend to, are you prepared to give up something else to have it.
Remember: Do you really NEED it? Or do you simply WANT it? These will change as you go through life,
but be clear about the priorities you have now.

As a group, discuss the things that you consider things you need, and the things
Employability Skills Toolkit
you want? (5 minutes)
PwC 4
Understanding your priorities
Your priorities should include your future needs, not just your current ones.

• This is an essential skill to develop when it comes to managing your money.

• Your priorities will change as you go through life, so remember the following:
– Consider the things that you have to spend money on vs the things you want to spend on
– Always rank savings high when budgeting
– Build in those future plans into your budget as much as you can, even if it’s a small amount. It
all counts!
– Regularly review your priorities to avoid missing something you might need, and that you have
a good balance
• A typical approach to prioritising:
1. Top priority - the things you have committed to spend on e.g. rent, mortgage, bills, contracts
2. Then - the things you want to save for e.g rainy day, car, house, phone, new clothes
3. Finally - your day-to-day spending e.g. lunch, socialising, takeaways
Remember: this is individual to you and everyone will have a different opinion on how to do it. This will
evolve but saving is often a constant theme throughout.

In pairs, what are your top 5 financial priorities now? (5 minutes)

Employability Skills Toolkit
PwC
What might they be in 10 years? (5 minutes) 5
The savings challenge
An essential item, not an afterthought!

• This is often low down on people’s list, or even overlooked completely. It is something we may have
been taught at an early age (with pocket money or piggy banks) but as life becomes busier, it’s
forgotten about or just harder to do.
• Here are some tips to help you through the process.
– Set clear goals - what do you want to save for? How much? By when?
– Break it down into monthly/weekly amounts - do the maths to see how much you need to
put away and over how long to achieve your target

Some things you might want to save for Other things people typically save for
– Mobile phone / gadgets – Rainy day fund
– Games console or game – University spending money
– To support a hobby or interest – New car
– New clothes – Deposit for a house
– Extra spending money – Future family
– Gifts for partner/family/friends – Retirement

In pairs, discuss the things you would want to save for, and how much you would
Employability Skills Toolkit
PwC need to save (10 mins) 6
Keeping track of your spending
Discipline is everything.

• Putting together a plan can be challenging, but actually sticking is just as important
• This isn’t always easy and can often test your patience, but it can be incredibly rewarding at the end
• It’s also a good motivating technique because you feel a sense of achievement when you meet your
target
• Linking back to earlier topics, consider:
– the need vs want approach
– the prioritisation of your needs
• Track your cash flow in and out
• Regularly review what you are spending on, you may be surprised!
• Don’t be afraid to make changes to your plan if you have to, there is nothing wrong with doing this,
but always keep your goals in mind so you don’t lose track.

In groups, what could you do to keep track of your spending? (5 minutes)

Employability Skills Toolkit
PwC 7
The power of doing your homework
Know your options before you commit your money!

• Companies can sometimes put you under time pressure to buy their product, or automatically renew
a product/subscription without you having to do anything. There are many positive reasons why they
do this such as convenience, but it can also reduce your ability to find a better deal.
• Always do some research into better or cheaper deals before committing your money or allowing a
deal to renew.
• Some things to help you research:
– Use independent sites to give you impartial reviews of good products vs marketed good
products
– Shop around on individual websites or price comparison websites
– Check if you can get better deals by using other platforms such as calling them or visiting their
store
– Read other customer reviews, and not just the good reviews!
Remember, you are the one in control outside of the contract period of your product so don’t feel
pressured by any company. When into a contract, you will be bound by their terms and conditions so be
clear of what you’re getting.
In groups, what research could you do on the following items before buying them:
Employability Skills Toolkit 1. new car 2. house 3. laptop (5 minutes)
PwC 8
Wrap up and
Reflection

Employability Skills Toolkit

PwC 9
What have you learnt today?

• Can you remember the fundamental principles?

• What one thing are you going to do differently moving forward?

Employability Skills Toolkit

PwC 10
What employability skills have you developed in this session?

Leadership Business Technical Global Relationships

minded capabilities acumen

• Teamwork • Quality in • Your knowledge • Seeking • Communication

everything you of potential jobs new perspectives skills
• Problem solving
do you could apply
• Sharing ideas • Building
• Decision making for
• Improvement relationships
• What have you • Coping with
• Thinking done you are change • Working with
commercially proud of others
• Open minded
• Ability to learn

Employability Skills Toolkit

PwC 11
Thank you
Disclaimer: This content is for general information purposes only, and should not be used
as a substitute for consultation with professional advisors. Information available here is
not to be relied upon as professional advice or for the rendering of professional services.

Certain links in this Site connect to other Web Sites maintained by third parties over
whom PricewaterhouseCoopers LLP has no control. PricewaterhouseCoopers LLP
makes no representations as to the accuracy or any other aspect of information contained
in other Web Sites. © 2019 PricewaterhouseCoopers LLP (a UK limited liability
partnership). All rights reserved. ‘PwC’ refers to the UK member firm, and may sometimes
refer to the PwC network. Each member firm is a separate legal entity. Please see
www.pwc.com/structure for further details.