Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL No. 803

Introduced by Representative EDUARDO R. RAMA JR.

EXPLANATORY NOTE

The State recognizes financial literacy as a core life skill that leads to financial stability
and financial freedom. It has been widely recognized that financial literacy matters
for poverty reduction and economic growth.

However, a global study shows that the Philippines ranks at the bottom 30 out of
144 countries in terms of financial literacy. A recent Bangko Sentral ng Pilipinas
survey showed that with questions on basic financial litcracy, only 1 percent of
surveyed Filipino adults correctly answered questions. Poor financial decisions have
a long-lasting impact on individuals, familics, and their communities. Low levels of
financial literacy are associated with a lower standard of living, overall well-being,
and increased reliance on government support.

This legislative measure seeks to include Basic Financial Literacy as a separate core
subject in the K-12 program. The inclusion of basic financial education as part of
the formal school curriculum is an efficient policy tool and a critical long-term
investment in economic development. Financial literate citizens can contribute more
productively to inclusive growth and be more efficient agents of nation-building.

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

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REP. EDUARDO R. RAMA JR.
2" District, City of Cebu

' Kris Crismundo, “BSP bridges financial literacy gap among Filipinos”, Philippine News Agency,
huips://www pna,gov.ph/articles/1206091.


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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

TWENTIETH CONGRESS
First Regular Session

HOUSE BILL NO. 803

Introduced by Representative EDUARDO R. RAMA JR.

AN ACT INTEGRATING BASIC FINANCIAL LITERACY AS A CORE
SUBJECT IN THE K-12 CURRICULUM AND APPROPRIATING
FUNDS THEREFOR

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

SECTION 1. Title. — This Act shall be known as the “Basic Financial Literacy

Education Ad.”

SECTION 2. Declaration of Policy. — It is the policy of the State to protect and
promote the right of all citizens to quality education, to take into account regional
and sectoral needs and conditions, and to encourage local planning in the

development of educational policies and programs.

Towards this end, the State secks to:
a. Introduce Basic Financial Literacy as a core subject in the basic education
curriculum
b, Ensure that financial education becomes an integral part of formal learning,

c. Enhance financial literacy and financial capability of all young Filipinos.


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d. Empower and equip the Filipinos with the knowledge and skilis to make
sound financial decisions.

€. Promote quality education that ensures an increasing number of Filipinos
with relevant skills and compctencics for productive lives and poverty

reduction.

SECTION 3. Basic Financial Literacy Education. -— There shall be a separate
subject on Basic Financial Literacy in the K-12 curriculum of both public and private

schools nationwide.

SECTION 4. Curriculum. - The Department of Education (DepEd), in
collaboration with the appropriate agencies, shall create a curriculum for a separate

subject on Basic Financial Literacy.

The core subject on Basic Financial Literacy shall include an understanding of the
following topics, which shall be adapted as necessary according to school level, and
to national, regional, or local circumstances:
a. Basic Financial Concepts
i. Credit
ii, Debt
iii, Deposit
iv. Income
v. Insurance
vi. Interests
vii. Investments
viii. Savings
b. Opening a Savings Account
c. Resource Management
d. Budgeting and Planning
e. Banks and Other Financial Institutions


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£. Financial Cooperatives
g, Digital Financial Services
h. Basic Tax Principles

i, Retirement

SECTION 5. Libraries. — There shall be a separate section in the public and private

school libraries exclusively for financial education.

SECTION 6. Minimum Qualifications of Teaching Personnel. = The DepEd shall
provide the guidelines on the minimum qualifications and competencies of financial
educators, which shall be adapted as necessary to national, regional, or local

circumstances.

SECTION 7. Training and Capacity Building. - The DepEd shall coliaborate
with the necessary educational organizations, financial institutions, and finance
experts to conduct training and capacity building programs for teachers. They shall
receive continuous support and training to strengthen their skills and effectiveness
on:

a. Designing a curriculum.

b. Assessing learner’s needs.

c. Employing educational strategies.

d. Improving teaching methods.

c. Upgrading learning tools and pedagogical resources.

SECTION 8. Monitoring and Evaluation. — The DepEd shall, in coordination
with the appropriate agencies, establish a system of monitoring and evaluation,
which includes:

a. Monitoring the actual teaching of basic financial literacy in schools through case

studies and various oversight mechanisms at the local, regional, and national levels.


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b. Evaluation of the competencies of students in basic financial literacy throughout
the curriculum via formal examinations, and conduct of ad hoc regional or national
contests.

cc. Establishment of basclinc surveys on the Icvel of financial literacy and skills of

students to set a benchmark, recognize gaps, and measure progress over time.

SECTION 9. Appropriations. - The amount necessary for the initial
implementation of this Act shall be charged against the appropriations of the
Department of Education. Thereafter, such sums as may be necessary for the
continued implementation of this Act shall be included in the annual General

Appropriations Act.

SECTION 10. Implementing Rules and Regulations, ~ Within ninety (90) days
from the effectivity of this Act, the Secretary of Education, in coordination with the
Secretaries of the Department of Finance, National Economic and Development
Authority, and the Governor of the Bangko Sentral ng Pilipinas (BSP), formulate

the rules and regulations for the implementation of this Act.

SECTION 11. Repealing Clause. ~ All laws, ordinances, rules, regulations, and
other issuances, or parts thercof, inconsistent with the provisions of this Act arc

repealed or modified accordingly.
SECTION 12. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette, or in a newspaper of general circulation in the

Philippines.

Approved,