Financial Literacy
EDUC205 – 35-Minute Reporting
By: [Your Name]
Definition & Importance
• Financial literacy: Ability to read, analyze, manage, and communicate personal financial conditions.
• Includes: discerning financial choices, discussing money comfortably, planning for the future.
• Hastings et al. (2013): Knowledge, numeracy, and engagement in financial planning.
• Importance: Everyday decision-making and quality of life.
Legal Basis in the Philippines
• RA 10922 – Economic and Financial Literacy Act.
• Mandates DepEd to integrate financial education into formal learning.
Six Standards of Financial Literacy
(1-3)
• Earning Income – Different jobs, income types, taxes, labor market.
• Buying Goods & Services – Scarcity, opportunity cost, budgeting, spending choices.
• Saving – Concept of saving, interest, financial institutions, real vs. nominal interest.
Six Standards of Financial Literacy
(4-6)
• Using Credit – Concept, costs, credit scores, borrowing calculations.
• Financial Investing – Investments, rates of return, diversification, market changes.
• Protecting & Insuring – Risk management, insurance, identity theft prevention.
Financial Literacy in the Philippines
• 20M Filipinos save, but only half have bank accounts (World Bank, 2014).
• No national strategy for financial literacy (ADB, 2015).
• BSP: Financial literacy should complement financial inclusion.
• Only 25% Filipinos are financially literate (S&P survey).
Benefits of Financial Literacy
• Improves quality of life and financial stability.
• Enhances ability to meet basic needs and invest wisely.
• Promotes ethical and responsible money management.
Attitudes Towards Money
• Six types: Frugal, Pleasure, Status, Indifference, Powerful, Self-worth.
• Attitudes influence spending, saving, and investing behavior.
Spending Patterns & Expenses
• Habitual Spending – Regular purchases out of habit.
• Impulsive Spending – Unplanned purchases.
• Fixed vs. Variable expenses.
• Needs vs. Wants prioritization.
Practical Steps to Enhance
Financial Literacy
• Set financial goals: short, medium, and long-term.
• Develop a spending plan: Record, Review, Take Action.
• Importance of saving: emergency, retirement, future events.
• Two ways to save: before you spend, after spending wisely.
• Tips: commit, accountability partner, savings role model, track goals, avoid temptations.
Conclusion & Call to Action
• Financial literacy is key to personal and community well-being.
• Adopt positive money habits today.
• Question: What financial habit will you start now?
