SENATOR Loren Legarda is pushing for the mandatory integration of a Personal Financial Literacy Course into the curricula of technical-vocational institutions (TVIs) and Technical Education and Skills Development Authority (TESDA) training centers nationwide.

Under Senate Bill No. 2106, Legarda seeks to equip technical-vocational students and trainees with essential financial knowledge and skills to help them manage their earnings, avoid financial fraud, develop savings habits, and plan for their financial future.

The proposed measure requires both public and private TVIs, as well as TESDA training centers, to include the course as a regular component of their technical-vocational education and training programs.

It also provides that students must obtain a passing grade in the financial literacy course as a prerequisite for completing their respective training programs.

In the bill’s explanatory note, Legarda emphasized that financial literacy is essential in helping individuals make informed decisions about their personal finances, including budgeting, spending, saving, investing, and retirement planning.

However, she noted that the Philippines continues to face significant gaps in financial literacy.

Citing the 2021 Bangko Sentral ng Pilipinas Financial Inclusion Survey, the measure noted that only two percent of Filipino adults correctly answered all six basic financial literacy questions.

It also cited a World Bank study indicating that only 25 percent of adult Filipinos were familiar with basic financial concepts.

Legarda pointed out that while Republic Act No. 10922, or the Economic and Financial Literacy Act, already mandates the government to promote financial literacy, existing initiatives, including TESDA’s online financial literacy modules, remain largely optional and lack a systematic approach.

Under the proposed legislation, TESDA, the BSP, the Department of Finance, the Securities and Exchange Commission, and the Insurance Commission will jointly develop the course through an Inter-Agency Committee.

The committee will also establish and periodically update the minimum course content, covering personal finance fundamentals, debt management, savings and emergency fund planning, investment and retirement planning, insurance, credit scoring, and consumer behavior.

The curriculum will likewise include the responsible use of digital financial services, particularly cyber hygiene and consumer protection in the digital economy.

Legarda said the measure seeks to ensure that technical-vocational graduates are equipped not only with job-related competencies but also with the financial knowledge and discipline needed to manage their earnings responsibly, avoid financial scams, and achieve long-term financial security.