We learn many things in school, like grammar and history, but there are still many important things we don't learn there. One idea that doesn't get enough attention in school is finance. This includes how to make a budget, how to invest, and how taxes work.

Key Financial Concepts

Unfortunately, this may result in two possible outcomes:

       You find yourself in money situations where you don't know what to do and must figure this out quickly.

       You make an error because you don't know enough, which costs you money.

If you don't know enough about money, budgeting, and making investments, you could end up in either of these situations. Learning about money after school is a good way to stay out of trouble with money.

50/20/30 Method

The 50/20/30 Method is a way to save money and make the most of your monthly salary. It makes the process of making a budget easier. Here, you first need to write down how much money you make every month. After you take out the tax, divide what's left by the following percentages:

       50% – Needs

       20% – Savings

       30% – Wants

Under needs, you can list your monthly bills, including rent or mortgage, groceries, school fees, health care costs, car payments, and other necessary expenses. Because these things are important, they cost you half of your salary. Savings are money you put away in a bank account for the future.

Build up an emergency fund with enough money for at least three months, and then you can focus on some other financial goals. If you have debt, the Method says you should use half of your assets to pay off your debt. Things such as new clothes, vacations, Netflix subscriptions, and hobbies are examples of things that you don't have to have.


One of the effective methods to save for the future is to invest your money. Putting your cost savings in a bank account might not be enough since inflation will make them worth less over time. For example, putting away enough money for groceries for three months might only be sufficient for two months the next year.

For people who are new to investing, Raffy Ayuste Jr. suggests Unit Investment Trust Funds (UITF). In simple terms, UITFs bring together money from many investors and have a fund manager take care of the money as a whole.

People who have to learn about investing can benefit from UITFs because the money managers will do the research and run the fund. You could also buy stocks, put your money into a local company or real estate, or give out loans with interest.

Installment Buying

Buy now, pay later is a phrase you may hear when shopping for appliances. This is a way to pay called installment buying, in which you buy something now and pay for it over a certain amount of time. For instance, you can purchase a washing machine but only pay for part of it right away.

Before you pay the full price, you get to bring it home and use it. This will be good for your budget if you can handle regular payments better than a one-time investment. Rather than spending a lot of money all at once, it's easier to pay for appliances, electronics, and home improvements over a longer period.

There are a lot of companies that let you buy things over time and offer different interest rates. When you buy something in installments, keep in mind the interest rates, fees, length of time, and ways to pay it back.

Asset Management

Managing assets means buying and selling assets. Asset managers or financial advisors are common names for people who work with assets. Their goals are to add more value and lower the client's risk. Portfolio managers can work for themselves or a company dealing with money 

Working with experts can help you make better decisions, especially when starting. They can offer advice and useful tools, like systems that make manual tasks easier. Taking care of your assets well can help you reach your financial goals.


There are many kinds of debt. It can be a mortgage loan, credit card debt, or money you loaned from a family member. Debt isn't always bad, but it's important to handle it well. In fact, for many people, the end goal is to pay off all of their loans and be debt-free.

Here are some important words to know when talking about debt:

       Debt: Anything you owe to an individual or entity, including real estate, tangible things, and money.

       Loan: A type of loan in which you borrow money from a lender with the promise to repay it later.

       Principal: This is the amount you are borrowing.

       Interest: A lender will charge you an interest rate. It is a percentage of the total owed and can be paid monthly or annually.


Taxation is a very important idea that is rarely taught in school. Taxes can directly or indirectly affect businesses, workers, and consumers. The Bureau of Internal Revenue (BIR) or your municipal govt is where you pay direct taxes.

These things include the following:

       Income tax

       Capital gains tax

       Professional tax

       Travel tax

Indirect taxes, on either hand, are taxes automatically taken out of the items you purchase or the services you use.

Some examples of indirect taxes are:

       Value Added Tax (VAT)

       Excise tax

       Energy usage tax

       Amusement tax

There is a significant Tax Identification Number for each taxpayer (TIN). To do business with the BIR, both individuals and businesses need TINs.

Never Stop Learning

Even though schools don't teach about finance, it's still crucial to comprehend these ideas so you can make smart decisions about your money every day. The 50/20/30 budget plan, buying things in installments, and managing your assets may seem hard to understand, but having to learn about them will assist you in controlling your money better. You can get the information you need to reach your financial goals by looking into investments, debt, and taxes.