finantial literacy-education-ecorl-uninettuno
TRANSCRIPT
FINANCIAL LITERACY EDUCATION
Topics What is financial education? Investment decision criteria Investment instruments Financial instruments
WHAT IS FINANCIAL EDUCATION?
Financial education is the processby which consumers improve understanding of financial products, concepts and risk OECD (2005)
Through information, instructions and/or objective advice, consumers develop skills and confidence
Become more aware of(financial) risks and opportunities
Make informed choiches Know where to go for help Take other effective actions
to improve financial well-being
What are the aims of financial education for consumers?
Review question
INVESTMENT DECISION CRITERIA
Risk involves the possibility an investment's actual return will differ from the expected return, including the possibility of losing some or all the original investment
Systematic Risk is the uncertainty inherent to the entire national and international market
Specific Risk is linked to the company or to a small group of companies
A return (yield) is the gain or loss of an investment in a specific period including incomes and capital gain
More risk and more potential for higher incomes, capital gains and losses
Can you define the concept and the relationship between risk and return in
financial investments?
Review question
INVESTMENT INSTRUMENTS
Stock is a part of the company's asset and earnings
Bond (corporate or government) is a debt investment
Savings Account Certificates of Deposit (Cds) Mutual funds
What is the difference between bond and stocks?
Review question
FINANCIAL INSTRUMENTS
Interest Rate Personal loan Mortgage loan Revolving credit
What are the main forms for private financing?
Review question
Summary questions
What are the aims of financial education for consumers?
Can you define the concept and the relationship between risk and return in financial investments?
What is the difference between bond and stocks?
What are the main forms for private financing?
FINANCIAL LITERACY EDUCATION