/ 15 October 2022

SENATOR Sherwin Gatchalian filed a measure requiring the teaching of financial literacy subject in elementary, secondary and tertiary levels.

Under Senate Bill 479 or the proposed Economics and Financial Literacy Curriculum and Training Act, all public and private schools, universities and colleges and technical-vocational schools and centers are required to develop a course focused solely on Economics and Personal Finance.

In elementary, the EPF course will cover basic economic principles such as, but not limited to, individual and family financial goal setting, evaluating expenses and budget preparation.

In high school, college and technical-vocational levels, the course will cover topics such as credit, savings, investment, and retirement among others.

“Providing financial education to the younger generation is essential to ensure their security and well-being in the future. A financially literate Filipino youth will be able to make well-informed financial decisions that will positively impact their personal financial circumstances, empowering them to take better advantage of economic opportunities,” Gatchalian said.

The chairman of the Senate Committee on Basic Education said that while 89% of Filipino youth rely on their parents’ financial knowledge, the Global Financial Literacy Survey conducted by Standard and Poor’s shows that only 25 percent of Filipinos are financially literate.

“Sa mahabang panahon ng pag-aaral ng ating mga kabataan, tinuturuan natin sila ng kaalaman at kakayahan upang makakuha ng maayos na trabaho, ngunit hindi natin itinuturo kung paano ang tamang paggamit ng salapi. Kung matuturuan natin sila ng financial literacy, matuturuan natin silang makamit ang pag-asenso at mamuhay nang mas matiwasay,” Gatchalian said.

While government agencies such as the Bangko Sentral ng Pilipinas, the Department of Finance, the Securities and Exchange Commission, the National Credit Council, and the Department of Education have launched financial literacy programs, these may not be sustainable if they are not institutionalized within the education system, he said.