Financial Literacy Course

I just completed an online self-learning course on "Personal Finance and Wealth Management: Strategies for Protection and Growth" offered by Republic Polytechnic through SkillsFuture.

Priced at just $8, I was surprised by the affordability and curious about the content, as courses like this were rare in the past.

Description of the course:
This module aims to equip learners with the essential knowledge on how to protect and enhance their wealth.

Learners will acquire an extensive knowledge of their financial risk profile and gain the necessary skills to make informed decisions on the different types of investment products.

Additionally, learners will be equipped with a deep understanding on how the economic factors and market trends can influence investment decisions, which will further enhance their ability to safeguard and grow their wealth.

Here’s a quick rundown of the 10 modules in the course:

1. Understanding and Preparing a Budget – A practical guide to creating and sticking to a budget.

2. The Role of Savings in Personal Finance – Exploring why saving is a cornerstone of financial stability.

3. Setting Financial Goals and Managing Risks – Defining short- and long-term goals while understanding financial risks.

4. Introduction to Investment Types and FX Markets – A beginner-friendly look at investment vehicles and foreign exchange markets.

5. Equity and Bond Markets – Diving into stocks and bonds, including how they work and their risks.

6. Commodity, Derivatives, and Real Estate Markets – An overview of alternative investment options and their unique characteristics.

7. Loans, Credit Cards, and Debt Management – Strategies for managing debt and using credit wisely.

8. The Role of Insurance in Healthcare – Understanding how insurance protects financial health.

9. CPF Accounts and ESG Factors in Investments – Insights into Singapore’s Central Provident Fund (CPF) and the growing role of Environmental, Social, and Governance (ESG) considerations.

10. Retirement and Estate Planning – Preparing for a secure retirement and organizing your legacy.

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My Key Takeaways

While many modules provided valuable insights, a few stood out for their relevance and new information that deepened my understanding of personal finance.

Module 3

I could relate to several types, particularly:

• Exchange Rate Risk: The weakened USD has directly impacted my investments, making me more cautious about currency fluctuations.
  
  
• Interest Rate Risk: With rates dropping below 4%, I’ve noticed reduced returns on fixed-income assets, which has prompted me to rethink my portfolio allocation.
  
  
• Political Risk: Recent leadership changes have made political risk feel especially unpredictable, influencing my investment decisions.

The module also explored factors influencing risk tolerance, which shapes our investor profile—whether we lean toward aggressive, moderate, or conservative strategies.

After reflecting on my own approach, I identify most with the moderate investor profile. I’ve set clear limits on the losses I’m willing to accept in trading and stock investments, striking a balance between seeking growth and protecting my capital.

Module 5
This module introduced me to the characteristics of various types of shares, and one concept that stood out was treasury shares.

I wasn’t familiar with these before—learning that they are shares a company buys back and holds in its own treasury was a valuable insight. This knowledge has helped me better understand corporate financial strategies and their impact on stock valuations.

Module 6
I learned that derivative instruments are financial contracts whose value comes from an underlying asset, index, or rate.

They’re used for hedging, speculation, or arbitrage and can be traded on exchanges or over-the-counter (OTC).

These instruments are powerful for managing risk or optimizing strategies but carry significant risks due to their leverage and complexity. Example: Call Option, Put Option, Protective Put Strategy, Covered Call Strategy.

Understanding their mechanics has given me a new perspective on how they can influence investment portfolios and corporate strategies, making me more mindful of their role in wealth management.

Final thoughts
The self-paced format allowed me to learn at my own convenience, which was perfect for balancing with a busy schedule.

However, I believe the course could be improved by splitting the modules into basic and advanced levels.

Modules on foundational topics like budgeting, savings, debt management, insurance, and CPF are perfect for beginners, serving as low-hanging fruits that everyone should master before tackling riskier areas like investments (modules 3–6).

Additionally, I found it odd that ESG factors were grouped with CPF in module 9. ESG considerations align more closely with investment decisions, as they are a key factor in assessing riskier investments, and should be covered alongside modules 4–6 for better coherence.