Republic of the Philippines

House of Representatives
Quezon City, Metro Manila

NINETEENTH CONGRESS
First Regular Session

a

HOUSE BILL No.

Introduced by: HON. CARL NICOLAS C. CARI

EXPLANATORY NOTE

Financial capability and literacy can be defined as "the ability to manage financial resources
effectively: based on knowledge, skills. and access.” This set of skills can help youth achie
financial well-being. which occurs when they can fully mect current and ongoing financial
obligations. fect secure in their financial future, and are capable of making decisions that allow
them to enjoy life. Financial education is how youth can leam these skills through a variety of
resources

Low-income people are more likely to be financially illiterate since they often do not have
casy access to reliable financial data. With this level of illiteracy, children from low-income
families run the risk of becoming victims of scams or “budols”. high-interest loans, and mounting,
debt as adults

Economist and former chair of the Federal Reserve of the United States, Alan Greenspan,
stated. “Financial education is a process that should begin at an carly age and continue throughout
life. This cumulative process builds the skills necessary for making critical financial decisions that
affect one’s ability to attain the assets ... and improve economic well-being,”

With all the foregoing. the immediate passage of this bill is respectfully sought

S" District. Leyte


Republic of the Philippines

House of Representatives
Guevon City. Metto Manila

NINETEENTH CONGRESS
First Regular Session

17

HOUSE BILL No.

Introduced by: HON. CARL NICOLAS C. CARI

AN ACT ESTABLISHING A
YOUTH FINANCIAL CAPABILITY AND LITERACY
AND APPROPRIATING FUNDS THEREFOR

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

SECTION 1. This Act may be cited as the “Youth Financial Capability and Literacy Act”

SECTION 2. The Department of Education shall integrate financial literacy education into public
elementary and secondary schools by carrying out the following activities:

Curriculum development:

b. Provide guidance and technical assistance to both public and private elementary and
secondary schools.

¢. Conduct monitoring and evaluation of the impact of financial literacy education on
students” understanding of financial literaey concepts,

d,_ Implement. expand. or sustain school-based financial literacy activities and curriculum
in order to enhance student understanding of and experimental learning with the

entrepreneurship. and personal finance concepts. including

{. student loans. and financial aid

consumer.
personal e

€. Promote partnerships between the government ag and other non-government

sanizations that provide innovative, ev idenice-based financial literacy activities t0
elementary school or secondary schoot students, which may include after-school
activities:

fPromote professional development programs to embed finaneiat fite
finance or entrepreneurship education into a well-rounded education in clementary
schools or secondary schools

e¥ oF personal

SECTION 3. The amount necessary to carry out the provisions of this Act shall be included in the
annual General Appropriations Act.

SECTION 4. Within ninety (90) days from the approval of this Act, the Department of Education
shall, in consultation with goverment agencies and non-governmental organizations shall
formulate and issue the appropriate rules and regulations implementing the provisions of this Act
SECTION 5. This Act shall take effect fifteen (15) days after its publication in the Official Gazette
or in a newspaper of general circulation

APPROVED,