REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bill No. 8458 _

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO-

EXPLANATORY NOTE

Without the technical obfuscation, financial literacy in a nutshell means understanding how
money works. By having a good understanding how money flows, affects people and things, and it
begets money, you can use these pieces of information to your advantage. Aside from practical
knowledge such as computation of interest rates, types of investments, and applicable topics,
financial literacy also involves theoretical yet basic knowledge of money and the financial world

In countries like the United States, United Kingdom, Canada, and Japan, the government,
along with other organizations, prioritizes the teaching of financial literacy to people of all age,
most especially to young people so they will grow up with a good grasp on financial matters.
Unfortunately, this is something that is lacking in the Philippines.

‘The Philippines is one of the fastest-growing economies in the region today, giving the
people the chance to have more financial power than before. However, without the proper financial
literacy training, all these will only go to waste if we do not understand how money works and what
are the consequences of having bad money habits

‘Thus, in hopes of improving the financial literacy of our people, approval of this measure is,
earnestly sought.



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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Third Regular Session

House Bitl No, 8458

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

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
2018.”

SEC. 2. Definition. —For the purposes of this Act:
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 non-profit organization with experience and a proven track
record in quality financial literacy or personal finance education programs.

b. Department means the Department of Education
¢. Secretary means the Secretary of Education

SEC. 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,


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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 (10) 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. Repealing Clause—All laws, decrees, executive orders or parts thereof
inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

SEC. 12. Separability Clause-—If any part or provision of this Act is declared invalid or
unconstitutional, the other parts not otherwise affected shall remain in full effect and force.

SEC. 13. Effectivity.—This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in at least two newspapers of general circulation.

Approved,