Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

H.B.No.__ 490

Introduced by HONORABLE JUAN EDGARDO “SONNY” M. ANGARA

EXPLANATORY NOTE

When it comes to investing, or even financial planning in general, people want to be told
exactly what to do. We ask where to invest our money and how much, which bank to
approach for advice, which stock to buy and which book to read. Unfortunately, our
school system does not teach our students and youth about money and personal
finance. This is why most Filipinos grow up without knowledge on how to handle their
money and other resources. In fact, our educational system does not teach our citizens
how to become financially independent and gain financial freedom. Our schools teach
our students about numerous subjects but they don't teach them how to handle their
‘own money wisely. Financial literacy is a must in today’s world if Filipinos would really
want to have financial freedom.

This measure encourages the development of financial literacy programs in educational
institutions and the private sector. It aims to equip Filipinos with the knowledge to
properly manage their finances and make informed financial decisions. It seeks to raise
the levels of financial literacy in Filipinos should encourage them to seek information
about their financial options.

In view of the foregoing, the passage of this bill is eamestly sought.

JUAN EDGARDO)/SONNY” M. ANGARA
Representative
Lone District, Prdvince of Aurora


FIFTEENTH CONGRESS OF THE )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

No (49

H.B.No.

Introduced by Honorable JUAN EDGARDO “SONNY” M. ANGARA

AN ACT
TO DEVELOP FINANCIAL LITERACY EDUCATION

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. - This Act shall be known as the “Financial Literacy Act of
2010.”

SEC.2, Definition. -The purpose of this Act the term —

A. “Eligible entity’ means-

1. an institution of higher education; or

2. a partnership consisting of--
a. an institution of higher education; and
b. a nonprofit organization with experience and a proven track record in quality
financial literacy or personal finance education programs.

B. “Department” means the Department of Education

C. “Secretary” means the Secretary of Education

SECTION 3. Grant. - The Secretary shall award grants, on a competitive basis, to
eligible entities to enable such entities to provide financial literacy courses or course
components to students.

SEC 4. Application. - An eligible entity that desires to receive a grant under this section
shall submit an application to the Secretary at such time, in such manner, and accompanied by
itemized budget and such other information as the Secretary may require.

SEC.5. Maximum Amount. The amount of the grant shall not exceed one million pesos
per grantee.

‘SEC. 6. Use of Funds. An eligible entity that receives a grant under this section shall

use the grant funds to develop and implement financial literacy education, activities, student


organizations, or counseling that increase student knowledge in consumer, economic, and
personal financial concepts.

SEC. 7. Evaluation. The Department shall provide for rules on periodic evaluation of the
performance of the grantees under this Act. The Department may provide for rules that shall
allow them to revoke grants at different stages of the implementation of each project based on
the result of the evaluation.

SEC. 8, Term. The term of this project shall be ten years,

SEC, 9, Report. At the end of the second year after the implementation of this Act and
every year thereafter, the Department shall provide the appropriate committees in the Senate
and the House of Representatives a status report on the grantees.

SEC, 10. Appropriations. The amount necessary for the initial implementation of this
Act shall be charged against the appropriations of the Department of Education under the
current General Appropriations Act. Thereafter, such sum as may be necessary for its full
implementation shall be included in the annual General Appropriations Act as a distinct and
separate item.

SEC. 11. Separability Clause. If any provision or part hereof, jis held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain
valid and subsisting.

SEC. 12. Repealing Clause. Any law, presidential decree or issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or is inconsistent with the

provision of this Act is hereby repealed, modified, or amended accordingly.

SEC, 13. Effectivity Clause. This Act shall take effect fifteen (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,