GROUP VI
BAMBICO, Kathleen Rose D.
CARREON, John Rodolph D.
LOPEZ, Hazel Andrea G.
NARCEDA, Miela Grace B.
PURISIMA, Brevin Josef F.
URSUA, Jelly Mae F.
PERSONAL FINANCIAL PLAN
I. OBJECTIVES
Rarely, will an individual’s current income exactly balance with
consumption desires. Sometimes, one may have more money than he/she
wants to spend; at other times, one may want to purchase more than he/she
can afford. These imbalances will lead individual either to borrow or to save
and invest to maximize the long-term benefits from income. Accordingly,
setting personal goals is important and it’s better to start planning as early as
now to properly manage finances and to meet financial objectives. Individuals
have a variety of financial goals that could either be a short-term and/or longterm objective and how they structure their financial plan is related to their
age, financial status, future plans, and needs. The objective of financial
planning is to ensure availability of funds whenever these are required. Along
with availability of finance, the objectives are the following:
 To examine the current financial status and develop financial goals
 To establish the planning horizon which is the time period of plan
(whether for a short-term or long-term basis
 To choose the right investment to achieve financial goals
 To monitor the financial plan from time to time for re-evaluation
II. PROFILE
As for the person who just started their career, Ms. Pyongyang answered
positively in the interview that was conducted online. She is a 23 years old
female, single and residing at San Agustin Sur, Agoo, La Union. She is
currently teaching Filipino subject at the Junior High School Department of
Saint Louis College, City of San Fernando, La Union. Due to the new normal
mode of learning this pandemic, she is doing her best to prepare modules and
attend her online classes via zoom meetings.
For the individual who just started their own family, we have Mrs.
Busan. She is a 35 years old female, married for five years to Mr. Busan, 36
year of age. Currently, they have a child, Baby Busan who is 5 years old. Mr.
and Mrs. Busan are presently residing at Purok 1 Pottot, Bauang, La Union.
Both of them are employed to the same company in different branches as
branch managers. Mrs. Busan is assigned at the branch in Naguilian, La Union
and Mr. Busan at the branch in Bauang, La Union. According to her, she had a
hard time travelling going to work and her daily travelling expenses had tripled
during the pandemic.
III. BACKGROUND AND SITUATION
Ms. Pyongyang was a graduate of Bachelor of Science in Secondary
Education at Don Mariano Marcos Memorial State University – South La Union
Campus. She is currently working as a private school teacher at Saint Louis
College, City of San Fernando, La Union. Ms. Pyongyang teaches Filipino
subject in junior high school. According to her, she was not able to get her
salary during the months of lockdown so she does not have any means of
supporting her expenses during this time. Luckily, she was able to cope with
these financial needs when Pres. Duterte ordered to open classes this school
year. However, as a new normal mode of teaching on her side, she needed to
manage the requirements of distant learning. In this way, she was able to help
her family's financial needs especially in supporting her sibling’s education.
Being an older sister in the family, much of her expenses are allotted for her
family’s daily needs and siblings’ tuition fees. As of today, Ms. Pyongyang
doesn’t have investments.
Mrs. Busan was a graduate of Bachelor of Science in Computer Science
at Union Christian College. She is currently employed as a branch manager at
Universal Storefront Services Corporation Naguilian, La Union. The Universal
Storefront Services Corporation is a sister company of western union to give
satisfactions and needs of the target market in different types of transactions
including money transfer, ticketing services, network loading, bills payment
and many other. Her husband, Mr. Busan was also a graduate of Bachelor of
Science in Computer Science at the same school. The real relationship goal is
that even their work at present is the same. Mr. Busan is also employed as a
manager at the same company but at a branch located in Bauang, La Union. In
terms of their investments, they have invested in mutual funds. Like all other
families, much of their finances are spent in meeting daily expenses
particularly paying their housing loan monthly amortization. As stated in her
profile, she had a hard time going to work during the start of the lockdown due
to Covid-19 pandemic. Aside from the limited transportation available at that
time, it tripled her daily fare expenses. According to her, it is a good thing that
their company is very considerate. They provide its employees daily fare
allowances. With regards to their finances, their company belongs to essential
business so they are able to continue their operation and receive their regular
salary but they are forced to use their vacation leave to cut the losses of the
company and which is understandable for them because all are affected by this
crisis.
IV.FINANCIAL GOALS
In this time of pandemic, some of us are not financially stable and as for
Ms. Pyongyang, it is quite challenging for her to find a stable and good paying
job and secure her siblings’ future. Currently, her financial goal in terms of her
education is to save for her to continue her Graduate studies for better
opportunities and faster promotions. She is also aiming to fully renovate her
parents' house before getting married. Additionally, she also wants to widen
her investments and have a passive income.
Building a family of your own is quite challenging and as for Mrs. Busan,
they made sure to secure first their home after marriage. Currently, her
financial goals are more into long-term rather than of short-term goals. They
are aiming at investing in real estate specifically to acquire a land that will
appreciate by time.
V. FINANCIAL NEEDS ANALYSIS AND RECOMMENDATION
Part of Mrs. Pyongyang’s monthly income is used to help her family in
paying their monthly needs. She also needs to save for her Graduate Studies
degree. And lastly, she aims to have her parent’s house renovated before she
gets married.
We therefore recommend that Ms. Pyongyang should;
1. start investing in investment institutions like Sun Life Financial, PRU
Life UK, etc. which offers a wide variety of investments for education, life
insurances, financial security;
2. Place her savings to interest earning institutions like banks and stock
markets; and
3. Invest in low-capital franchise business that could help in increasing her
monthly income.
The monthly income of Mrs. Busan and her family are allocated to their
monthly expenses, maturing debts specifically on their housing loan, and also
for the educational fees of their children. Mrs. Busan is more focused on
sustaining their short-term needs which includes food, daily allowance, car
fuel, utility bills, and other expenses for house maintenance.
We therefore recommend that Ms. Busan should;
1. Work on settling her debt at PAGIBIG;
2. Invest to an education plan for her children;
3. Invest to a health care plan, life plan, and retirement plan that could be
provided by insurance companies like PRU Life UK, Sun Life Insurance
and many more; and
4. Place her savings on interest earning institutions like banks and stock
markets;
DISCLAIMER: The names are fabricated but information is based on real persons
and their situations.