Republic of the Philippines

Tarlac State University

COLLEGE OF EDUCATION
CENTER OF DEVELOPMENT
Lucinda Campus, Tarlac City
Tel. No. (045) 493-0182; Fax No. (045) 982-0110
Re-Accredited Level IV by the Accrediting Agency of Chartered Colleges and Universities of
the Philippines (AACCUP), Inc.

FINANCIAL LITERACY

Prepared by:

CALIMLIM, Rea Marie Joy

RAMOS, Elena Julyn Baes
REYES, Jenny
SABAT, Aira Mariz Nardo
SANTIAGO, Danico
TABAQUERO, Angeline Tababa
TAGUINES, Shiena Mae Magante
TOLENADA, Althea
TUPAS, James Antonio
VIGILIA, April Joy

EDUC 206: Building and Enhancing New Literacies Across the Curriculum
February 17, 2025

TABLE OF CONTENTS

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CHAPTER 4: FINANCIAL LITERACY
Introduction …………………………………………………………………………………..………….…
3
a. Overview of Financial Literacy………………………………………………………………........4
b. Fundamental Components of Financial Literacy……………………….……….……..………..…4
c. Financial Education.…………………………………………….……….………………..……….5
d. Six Standard to Improve Financial Literacy of Students……………………………….………..6-8
e. The Benefits of Financial Literacy……………………………….…………….………….…….
…………………………….9
f. Financial Literacy in the Philippines…..….……….………………..…….….……………….11-12
g. Developing Personal Financial Literacy……………………………..…………….…….……12-13
● Habitual Spending and Variable Spending
● Fixed Expenses and Variable Expenses
● Needs vs Wants
h. Setting Financial Goals…………….……………….………………..……………………….…..13
i. Developing a Spending Plan……………………….……………………………………………..14
j. Importance of Saving…….…………………………………..………………………..………14-15
Conclusion …………..…………………………………………..…………………………………….15-
16
References……………………………………………………………..…………………………….…16-
18

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 INTRODUCTION

Money plays a big role in our daily lives, yet many people struggle with managing it wisely.
Financial literacy isn’t just about numbers, it’s about making smart decisions that help us achieve our
goals, avoid debt, and secure our future. Understanding how to budget, save, and spend wisely can make
a huge difference in our quality of life.

In the Philippines, Republic Act 10922, also known as the "Economic and Financial Literacy
Act," emphasizes the importance of teaching financial skills to Filipinos. With the right knowledge,
people can make informed choices about their money, whether it’s setting financial goals, handling
expenses, or making the most of their income.

This report explores the basics of financial literacy, including how to manage spending,
differentiate between needs and wants, and create a solid financial plan. By building these skills,
individuals can take control of their finances, reduce financial stress, and work towards a more secure and
stable future.

OBJECTIVES:

At the end of the discussion, the BSEd ENGLISH 3-A should be able to:

1. Define what financial literacy is;

2. Characterize financial literacy in the Philippines;
3. Embody responsible financial habits by applying practical steps for better financial literacy.

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 Financial Literacy

Tolenada, Althea

Financial literacy is a core life skill in an increasingly complex world where people need to take
charge of their own finances, budget, financial choices, managing risks, saving, credit, and financial
transactions. (De Leon 2009). Poor financial decisions can have a long-lasting impact on individuals, their
families and society caused by lack of financial literacy. Low levels of financial literacy are associated
with lower standards of living, decreased psychological and physical well-being and greater reliance on
government support. However, when put into correct practice, financial literacy can strengthen savings
behavior, eliminate maxed-out credit cards and enhance timely debt.

Fundamental Components of Financial Literacy

Financial literacy consists of several financial components and skills that allow an individual to
gain knowledge regarding the effective management of money and debt.

Below are the fundamental components of financial literacy that should be learned.

1. Budgeting

Budgeting is a fundamental aspect of financial literacy that involves managing income and
expenses to ensure financial stability. There are four primary uses of money that determine a budget:
spending, investing, saving, and giving away.

A well-structured budget ensures that an individual can cover necessary expenses, pay off
existing debts, and allocate funds for savings and investments. Effective budgeting also helps individuals
control their spending habits, avoid financial stress, and achieve long-term financial security.

2. Investing

To become financially literate, an individual must learn about key components in regard to
investing. Some of the components that should be learned to ensure favorable investments are interest
rates, price levels, diversification, risk mitigation, and indexes.

Learning about crucial investment components allows individuals to make smarter financial decisions that
may result in an increased inflow of income.

3. Borrowing

In most cases, almost every individual is required to borrow money at one point in their life. To
ensure borrowing is done effectively, an understanding of interest rates, compound interest, time value of
money, payment periods, and loan structure is crucial.

4. Taxation

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 Gaining knowledge about the different forms of taxation and how they impact an individual’s net
income is crucial for obtaining financial literacy. Whether it be employment, investment, rental,
inheritance, or unexpected, each source of income is taxed differently.

Awareness of the different income tax rates permits economic stability and increases financial
performance through income management.

5. Personal Financial Management

The most important criteria, personal financial management, includes an entire mix of all the
components listed above. Financial security is ensured by balancing the mix of financial components
above to solidify and increase investments and savings while reducing borrowing and debt.

Financial Education
Tupas, James A.

The National Endowment for financial education defines financial literacy as “t he ability to read,
analyze, manage, and communicate about the personal financial condition that affects material well
- being. It includes the ability to discern financial choices, discuss money and financial issues without (or
despite) discomfort, plan for the future, and respond competently to life events that affect everyday
financial decisions, including events in the general economy” (Incharge Education Foundation, 2017).

When we discuss financial education, we are talking about teaching people the principles of
managing their money throughout their lives.What is financial education? Financial Education is the
ability to use knowledge and skills to manage one’s financial resources effectively for lifetime
financial security. (Mandell, 2009). According to the National Financial Educators Council, financial
education is the process of learning the skills and knowledge on financial matters to confidently take
effective action that best fulfills an individual’s personal, family and global community goals. It is
showing people the skills and giving them the knowledge to effectively deal with their money. Effective
financial education addresses different options to work within different sets of variables. It also shows
people how to maximize savings while minimizing risks and expenses. It gives people the principles of
how to make money work for you and frees you from being a lifelong slave to money.

Public and private institutions alike have recognized the need for financial education to be
incorporated in the school curriculum. Financial education advocacy programs of the public and private
sectors have been identified as the key areas in building an improved financial system in the Philippines
(Go, 2017). Republic Act 10922, otherwise known as the “Economic and Financial Literacy Act”,

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mandates DepEd to “ensure that economic and financial education becomes an integral part of
formal learning.”

Six Standard to Improve Financial Literacy of Students

April Joy Vigilia & Rea Calimlim

The Council for Economic Education (CEE) is the foremost organization in the United States
committed to supporting economic and financial education for Kindergarten through high school students.
To improve the financial literacy of students, CEE created six standards that serve as a structured method
of learning personal finance based on an economic approach.

Standard 1: EARNING INCOME

● It is the money earned or gained by individuals from different sources. Some of the key concepts
that fall under this standard are:
➢ income earned or received by people
➔ This refers to the money individuals gain from various sources, including wages,
salaries, business profits, and government assistance. It highlights the difference
between earned income (from working) and passive income (from investments or
other sources).
➢ different types of jobs as well as different forms of income earned or received
➔ Jobs can vary in terms of skill level, industry, and employment type (full-time,
part-time, freelance, etc.).
➔ Income forms include hourly wages, salaries, commissions, bonuses, profits,
rental income, dividends, and government benefits.
➢ benefits and costs of increasing income through the acquisition of education and
skills
➔ Higher education and skill development can lead to higher-paying jobs, career
advancement, and better job security.
➔ However, pursuing further education or training often comes with costs, such as
tuition fees, time investment, and opportunity costs (time spent studying instead
of earning).
➢ government programs that affect income
➔ These include social welfare programs, unemployment benefits, tax credits, and
subsidies.
➔ Governments may provide financial assistance to low-income individuals, offer
incentives for job creation, or regulate wages (e.g., minimum wage laws).
➢ types of income and taxes
➔ Income types include earned income (salaries, wages) and unearned income
(dividends, interest, rental income).
➔ Taxes on income can vary, including income tax, payroll tax (Social Security,
Medicare), and capital gains tax.
➢ labor market
➔ The labor market is where workers seek employment and employers hire
workers.
➔ Factors affecting the labor market include supply and demand for jobs,
economic conditions, wage levels, and government regulations.

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 ➔ It also includes concepts like unemployment, job mobility, and workforce
participation.

Standard 2: BUYING GOODS AND SERVICES

● It addresses consumer choice and determinants of purchasing behavior. Key concepts are:
➢ scarcity, choice, and opportunity cost
➔ People have limited money and resources, so they must choose what to buy.
➔ Opportunity cost means giving up something to get something else.
➢ factors that influence spending choices, such as advertising, peer pressure, and
spending choices of others
➔ Advertising, peer pressure, and what others buy can affect decisions.
➢ comparing the costs and benefits of spending decisions
➔ Before buying, people weigh whether something is worth its price.
➢ basics of budgeting and planning
➔ Budgeting helps people manage their money to avoid overspending.
➢ making a spending decision
➔ Choosing what to buy based on needs, wants, and available money.
➢ payment methods, costs, and benefits of each
➔ Different ways to pay (cash, credit, debit) have pros and cons.
➔ Credit can help buy big items but may lead to debt.
➢ budgeting and classification of expenses
➔ Expenses can be needs (food, rent) or wants (entertainment, luxury).
➢ satisfaction, determinants of demand, costs of information search, choice of product
durability
➔ Governments set rules to protect buyers and provide information (e.g., product
safety, price regulations).
➢ the role of government and other institutions in providing information for
consumers

Standard 3: SAVING

● Saving is a basic money habit that provides long-term financial security. Key concepts are:
➢ concept of saving and interest
➔ Saving is setting money aside instead of spending it.
➔ Interest is extra money earned on savings over time.
➢ how people save money, where people can save money, and why people save money
➔ People save in banks, piggy banks, or investments.
➔ They save for emergencies, big purchases, or future needs.
➢ the role that financial institutions play as intermediaries between savers and
borrowers
➔ Banks and credit unions help people save and lend money to others.
➢ the role government agencies such as the Federal Deposit Insurance Corporation
(FDIC) play in protecting savings deposits
➔ Agencies like the FDIC protect bank deposits so savings are safe.
➢ role of markets in determining interest rates

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 ➔ Interest rates change based on the economy and supply/demand for money.
➢ the mathematics of saving
➔ Simple calculations show how savings grow over time.
➢ the power of compound interest
➔ Money earns interest, and that interest earns more interest over time.
➢ real versus nominal interest rate
➔ Nominal rate = stated interest rate.
➔ Real rate = interest rate after removing inflation.
➢ present versus future value
➔ A dollar today is worth more than a dollar in the future due to inflation.
➢ financial regulators
➔ Groups that ensure banks and savings programs are safe and fair.
➢ the factors determining the value of a person's savings over time
➔ Inflation, interest rates, and financial habits influence savings.
➢ automatic savings plans, "rainy-day" funds
➔ Setting up automatic transfers to savings helps build wealth.
➔ "Rainy-day" funds cover unexpected expenses.
➢ saving for retirement
➔ Putting money into pension plans

Standard 4: USING CREDIT

● The section on using credit delves into the fundamental concepts of credit, including the cost of
using credit, the sources and reasons for credit usage, and the calculations involved in borrowing
(principal, interest, compound interest). Additionally, the report covers the importance of credit
reports, credit scores, and consumer protection laws.

Standard 5: FINANCIAL INVESTING

● Financial investing is a crucial component of wealth management. This report explores the
concept of financial investment, the variety of possible investments, the calculation of rates of
return, and the relevance of real and after-tax rates of return. The report also addresses how
markets react to changes in conditions and information, as well as the role of diversification in
reducing risk.

Standard 6: PROTECTING AND INSURING

● The final section of the report focuses on the concepts of financial risk and loss, insurance as a
means of risk transfer, and the management of risk. Additionally, the report covers the
importance of identity theft protection and life insurance products as essential tools for
safeguarding one's financial well-being.

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 The Benefits of Financial Literacy
Santiago, Danico

Being financially literate means having the knowledge and skills to manage money wisely, and it
can make a huge difference in everyday life. It helps people budget their income, track expenses, and
avoid unnecessary debt, so they don’t have to constantly worry about making ends meet. Knowing how to
save whether for emergencies, future goals, or retirement creates a sense of security and peace of mind. It
also encourages smarter spending by helping people recognize the difference between needs and wants,
reducing impulsive purchases that could lead to financial trouble. Most importantly, financial literacy
gives people confidence in making decisions about things like loans, investments, and major purchases.
With the right financial habits, anyone can work toward stability, independence, and a future free from
money-related stress.

Financial Literacy in the Philippines

Sabat, Aira Mariz N.

1. World Bank study in 2014 estimated 20 million Filipinos saved money but only half had
bank accounts.
This statistic indicates that while a significant number of Filipinos understand the importance of
saving money, most of them do not use formal financial institutions like banks. This may be due to
factors such as lack of access to banking services, mistrust in financial institutions, or preference for
informal saving methods like keeping cash at home or participating in rotating savings schemes.

2. Asian Development Bank (ADB) study in 2015 revealed that PH does not have a national
strategy for financial education and literacy.
A National Strategy for Financial Education and Literacy is a structured strategy developed
by a financial authority or government to enhance people’s financial habits, knowledge, and abilities. It
aims to assist individuals in reaching long-term financial stability, manage money wisely, and well-
informed financial decision-making.

Purpose of a National Strategy for Financial Education and Literacy

• To ensure citizens understand basic financial concepts (saving, budgeting, investing, credit, and
insurance).
• To enhance financial decision-making and prevent financial mismanagement.

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• To promote financial inclusion, ensuring access to financial and banking services.
• To protect individuals from fraud, scams, and predatory financial practices.
• To contribute to overall economic growth and stability.

Due to the absence of a national financial literacy strategy, financial education is not systematically
included in community programs, public policy, or educational institutions. Financial literacy initiatives
could be irregular, inconsistent, or fail to reach the general public if they fail to establish a systematic
plan.

3. In 2016, Bangko Sentral ng Pilipinas (BSP) released the national strategy for financial
inclusion, stating that while institutions strive to broaden financial services, financial
literacy should also complement such initiatives.
The Bangko Sentral ng Pilipinas (BSP) released the National Strategy for Financial Inclusion
(NSFI) in 2016 as a comprehensive framework to promote financial inclusion in the Philippines. This
strategy aims to ensure that all Filipinos, especially those in underserved and low-income communities,
have access to financial services and the knowledge to use them effectively.

National Strategy for Financial Inclusion (NSFI) Objectives:

1. Increase Access to Financial Services
Expand banking services to rural and remote areas.
Advertise digital banking, e-wallets, and mobile payments.
2. Improve Financial Literacy and Education
Integrate financial education into school curricula.
Administer public awareness campaigns on saving, investing, and responsible loans.
3. Strengthen Consumer Protection
Implement laws and policies to prevent fraud and unfair lending practices.
Promote transparency in financial products and services.
4. Encourage Innovation and Technology in Finance
Support digital financial services development.
Enhance fraud and cybersecurity prevention measures.

5. Promote Financial Resilience

Encourage Filipinos to invest in insurance and contingency savings.

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Support microfinance and small business funding.
The BSP realized that offering financial services (such as banking, insurance, and investment
opportunities) alone is insufficient if consumers are reluctant to use them efficiently. Therefore,
educational initiatives that educate Filipinos how to handle money, make investments, and make wise
financial decisions need to go hand in hand with financial inclusion initiatives.

4. As per Standard & Poor’s (S&P) Ratings services survey last year, only 25% of Filipinos
are financially literate. This means that about 75 million Filipinos have no idea about
inflation, risk diversification, insurance, compound interest, and bank savings.
This finding highlights a huge gap in financial education. Financial literacy involves
understanding concepts like inflation (how money loses value over time), risk diversification (not putting
all money in one investment), insurance (protecting against financial risks), compound interest (how
money grows over time), and banking services (savings and loans). Lack of awareness about these matter
makes Filipinos vulnerable to financial instability, scams, and poor investment choices.

5. Ten years after the discovery of the stock market, still less than one percent of PH
population is invested in it.
Very few Filipinos took advantage of the stock market despite its availability as an investment
option. Possible reasons could be lack of knowledge about how the stock market works, fear of risks,
preference for more familiar investment options (like real estate or business), or limited disposable
income to invest.

6. More than 80 percent of the working middle class have no formal financial plan.
Even among those who have stable jobs and incomes, financial planning is not a common
practice. Many working Filipinos do not have structured plans for budgeting, saving, investing,
retirement, or emergency funds. This lack of planning can lead to financial difficulties in times of crisis or
unexpected expenses.

FINANCIAL LITERACY IN THE PHILIPPINES

Taguines, Shiena Mae M.

Due to the poor financial literacy findings among Filipinos, the Bangko Sentral ng Pilipinas
(BSP) became the primary forefront of promoting financial literacy in the Philippines. As they recognized
the need for more structured and collaborative approach, BSP launched the FINANCIAL EDUCATION
OF STAKEHOLDERS EXPO. An initiative aimed at gathering key financial experts from various
sectors to enhance the Financial Education efforts.

The Financial Education of Stakeholders Expo was first held on November 27-28, at Manila,
SMX Convention Center. The event was launched in response to the alarming findings of Financial
Literacy surveys (2018) where more than 1.000 leaders, decision-makers, influencers, and representatives
from public and private institutions, civic society, and the academe gathered.

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 This is in line with the BSP advocacy for financial education and supports the BSP mandates of
maintaining price stability, financial stability, and efficient payments system, It is the BSP's conviction
that a financially educated Filipino is an empowered Filipino who is able to make wise financial decisions
that positively impact personal financial circumstances, and, consequently contribute to inclusive and
sustained economic development.

BSP mandates of maintaining the following:

Price Stability- The condition where inflation is kept low and stable, preserving the purchasing amount
of money and ensuring predictable economic conditions.

Financial Stability- A state in which the financial system, including banks, markets, and institutions,
operates smoothly without disruptions.

Efficient Payment System- A secure, reliable and fast mechanism that facilitates smooth financial
transactions, reducing costs, delays, and risk while ensuring seamless transfers of money across
economies.

The Expo supports Republic Act No. 10922 which designates second week of November as Economic
and Financial Literacy Week. It is also aligned with the objectives of the Philippine National Strategy for
Financial Inclusion, particularly the pillar on Financial Education and Consumer Protection.

Developing Personal Financial Literacy

Reyes, Jenny F.

When we talk about money: Did you ever think that your parents contribute to your attitude and
behavior about money? According to the book, one's attitude about money heavily influenced your
parents. As we grow old, we witness how our parents manage finances at home, buying needs and
discussing money. These experiences influence us about money matters, saving and spending.

Now, there are six major characteristic types in how people view money (Incharge,2017).

Frugal - these are the people who prioritize their savings and financial security. They are living below
their means and saving money. Meaning they don't usually invest in luxurious things and save money
instead. The reason why frugal people save money ,because they believe that money will offer protection
from unexpected events.

Example: using coupons to save money and strictly monitor their expenses.

Pleasure - they tend to spend more than to earn money, and more likely use money for their pleasure to
themselves and others. Pleasure seekers are prone to debt, if they don't change.

Status- these are the people we buy luxurious things to "show off" and express their social status.

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Indifference - they value money and prefer self- sufficiency, when we say self-sufficiency they have the
ability to provide their own rather than depending on others. Example: crafting their own clothes.

Powerful- these people use their money to control, influence and take over to others. Example: Business
men give donations to charities to build their connections and gain control to the markets.

Self- worth - people who spend their money to tie their self-esteem and judge others based on how much
money they have or earned.

Developing Personal Financial Literacy: Habitual Spending and Variable Spending

Santiago, Danico

Habitual spending refers to routine purchases made out of habit, such as buying coffee every
morning or subscribing to multiple streaming services without thinking about the cost. Impulsive
spending, on the other hand, happens when someone makes unplanned purchases on the spot, often driven
by emotions or temptations, like buying an expensive gadget on a whim. While habitual spending can be
managed with awareness and budgeting, impulsive spending can lead to financial strain if not controlled.

Developing Personal Financial Literacy: Fixed Expenses and Variable Expenses

Fixed expenses are regular, consistent costs that do not change from month to month, such as rent,
mortgage payments, and insurance premiums. Variable expenses, on the other hand, fluctuate based on
usage or lifestyle choices, like utility bills, groceries, and entertainment costs. Managing both effectively
helps in creating a balanced budget and maintaining financial stability.

Developing Personal Financial Literacy: Needs vs Wants

Needs are essential expenses required for survival and daily living, such as food, housing, utilities,
and healthcare. Wants, on the other hand, are non-essential items or services that enhance comfort and
enjoyment, like dining out, luxury clothing, or the latest gadgets. Understanding the difference between
needs and wants helps people prioritize spending, make smarter financial decisions, and avoid
unnecessary debt.

Setting Financial Goals

Ramos, Elena Julyn

Setting financial goals is the first step to managing one's financial life. Goals may be short,
medium, and long-term. Short-term goals can be measured in weeks and can provide instant gratification
and feedback. "I will ride on the LRT instead of tax" and "I will bring lunch every day" are examples of
short-term goals. Medium-term goals should be accomplished within one to six months. These goals

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provide opportunity for reflection and feedback and require discipline and consistency. Long-term
financial goals can take years to achieve. These include saving money for a down payment on a home, a
child's college education, and retirement. They may also include paying off a car, student loans, or credit
card debt.

Developing a Spending Plan

Time and effort are necessary to build a sustainable spending plan. Three easy steps are proposed
below when developing your personal spending plan:

1. Record-Keep a record of what you spend.

Budgeting Personal Expenses
Example: You are staying in a boarding house while you are studying so you have to budget your
allowance for a week. By keeping a record of your expenses, you can track where your money goes and
ensure that your allowance lasts the entire week.
2. Review-Analyze the information and decide what you do.
Explanation: Analyzing or reviewing your spending helps you see what to buy, which expenses are
necessary and it will discourage you from overspending. By tracking your spending you can make
smarter choices. Furthermore, this will help you become financially independent and prepared for future
responsibilities.
3. Take action-Do something about what you have written down.
Taking action means doing something or putting your plan into practice. If you notice that you
are spending too much on unnecessary things, you should make adjustments to make sure your money
lasts.
Example:
If you are staying in a boarding house while studying, budgeting is crucial. By keeping a record
of your expenses and analyzing your spending, you can take action by cutting your habit of eating
outside, and instead cook something in your boarding house that will last for a whole day. Decrease
buying non-essential items, and prioritize important needs like school supplies,foods and savings. By
taking action to control your spending, you learn to live within your means, avoid financial stress and
make wise decisions in life.

Importance of Saving
Tabaquero, Angeline T.
Because no one can predict the future with certainty, we need to save money for anything that
might happen. Here are some reasons why saving is important:

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Emergency Bolster - You should save money to avoid going to debt just to pay emergency situations,
like unexpected medical expenses and damages caused by calamities or accidents.
Retirement - You will need savings/investments to take the place of income you will no longer receive
when you retire.
Future Events - You need to save for future events like weddings, birthdays, anniversaries, and travels so
as not to sacrifice your fixed expenses.
Instability of Social Security - Pensions from social security should only serve as supplementary and not
the primary source of income after retirement.
A Little Goes a Long Way - Small consistent savings go a long way.

There are two ways to save:

● save before you spend; and
● save after you spend wisely.
In order to stick to the savings habit, you should:
● commit to a month;
● find an accountability partner;
● find a savings role model who is successful with his/her money, through tried and true savings;
● write your goal down and track it; and
● avoid tempting situations (don't go to the mall to "hang out").

CONCLUSION

Financial literacy is a key life skill that helps individuals make smart financial decisions, manage
money effectively, and avoid financial difficulties. It involves understanding essential components such
as budgeting, investing, borrowing, taxation, and personal financial management. Budgeting ensures
proper income allocation, investing helps grow wealth, borrowing requires responsible management to
avoid debt, and taxation awareness aids in financial planning. By balancing these elements, individuals
can achieve financial stability, reduce financial stress, and secure their future. Strengthening financial
literacy leads to better financial habits, improved economic well-being, and greater financial
independence.

Financial Literacy isn’t just about numbers—it’s about making smart decisions that will help us
shape our future. When we learn how to manage money by saving wisely and planning ahead, we give
ourselves the power to achieve our goals and also to avoid financial struggles. That is why financial
education is important in both public and private sectors, where schools, government, and private
organizations work together to make sure students like us are prepared. The Republic Act No. 10922, or
the Economic and Financial Literacy Act, helps us to have more opportunities to learn valuable skills
when it comes to financial responsibilities and the like. Being financially smart doesn’t just help us, but
also our families, our communities, and even our country.

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 Integrating the six standards of financial literacy into education equips students to be knowledgeable
and responsible in their financial decisions throughout their lifetime. These standards not only encourage
financial independence but also lead to economic stability and security and by applying these standards
students are well-positioned to meet their financial objectives and help build a financially responsible
society. However, financial literacy in the Philippines remains low with just 25% of Filipinos are
financially knowledgeable, and less than 1% of them investing in the stock market. Limited access to
financial institutions and insufficient financial education further hinder the progress. Despite initiatives
like National Strategy for Financial Institution (NSFI) comprehensive financial education is not fully
integrated into the curriculum. Legislative reforms, increased accessibility and enhanced financial
education is not necessary to improve financial stability and decision making.

Efforts such as the Financial Education Stakeholders Expo highlight the Bangko Sentral ng Pilipinas
(BSP) commitment in improving financial literacy. By bringing together experts and policymakers, such
initiatives promote informed financial inclusion, empowering Filipinos for a more stable and sustainable
economy.

Parents also play a crucial role in shaping financial attitudes and behaviors. As children observe
how families manage their finances, they develop their own financial habits as well. According to
Incharge, (2017), people have different ways for spending and saving their money. Some prioritize saving
and others spend for enjoyment. Understanding this mindset can help individuals recognize their financial
behaviors and make informed decision making.

Setting financial goals and developing spending plans are necessary steps in managing finances
effectively. By categorizing goals into short, medium and long-term objectives, individuals can create a
roadmap that will help them to become financially stable and successful. Moreover, making a spending
plan through record-keeping, reviewing expenses and taking action is the key for a better decision making
and allows oneself financial discipline. Practicing these habits helps individuals live within their means,
avoid financial stress, and build a brighter future.

Saving money is an essential habit that provides financial security and peace of mind. It prepares
us for unexpected emergencies, ensures a comfortable retirement, and allows us to enjoy future
milestones without financial strain. Given the uncertainty of social security benefits, having personal
savings is crucial for maintaining financial independence. By adopting simple saving strategies—whether
saving before or after spending—we can gradually build a secure financial future. Committing to the
habit of saving, finding support through accountability partners, and setting clear goals can make saving
easier and more effective. Ultimately, consistent saving empowers us to face the future with confidence
and stability, proving that a little effort today can lead to significant rewards tomorrow.

References:

Alta, E. J., & Ignacio, E. J. T. (2019). Building and enhancing new literacies across the
curriculum (1st ed.). Rex Bookstore.

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 Alliance for Financial Inclusion. (2025, February 3). BSP signs MoU on national strategy for

financial inclusion in Philippines - Alliance for Financial Inclusion. Alliance for Financial

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national-strategy-for-financial-inclusion-in-philippines

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