Republic of the Philippines
HOUSE OF REPRESENTAT!
Quezon City
NINETEENTH CONGRESS
First Regular Session

House brit No, 3135

Introduced by Hon. Jose Manuel F. Alba

EXPLANATORY NOTE

According to findings, financial education is exceptionally relevant now as the standard of
living keeps on rising alongside the prices of basic necessities. Financial education, however,
is not given optimal attention by our society and by the State.

Thus, this proposed measure seeks to declare a national policy promoting financial literacy as a
tool for poverty alleviation and national development.

Financial education is an important tool in achieving financial inclusion, financial stability,
economic growth, and development. It is believed that financial literacy program plays an
important role in reducing economic inequalities, empowering practically all citizens, and
addressing the information asymmetries between financial intermediaries and their
customers. Financial literacy is also considered to be helpful in preparing consumers for
tough financial times.

For emerging economies, financially educated consumers can help ensure that the financial
sector makes an effective contribution to real economic growth and poverty reduction.'

The proposed measure pushes for a collective and inclusive approach in promoting financial
education. Schools and workplaces will then be utilized as learning environments, integrating
financial literacy in anti-poverty programs, and multi-channel delivery of learning tools and
information.

To institutionalize the promotion and integration of financial educations, the proposed
measure creates the National Financial Literacy Council (NFLC). The NFLC will be
responsible in formulating a national plan reyarding financial education.

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

Se

Representative, 1* District, Bukidnon

' The Importance of Financial Education. Organization fr Keanamic Coeperation and Development (OECD)


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NINETEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3135

Introduced by Hon. Jose Manuel F. Alba

AN ACT
DECLARING A NATIONAL POLICY THE INTEGRATION OF
FINANCIAL LITERACY IN OUR EDUCATION SYSTEM ASA
TOOL FOR POVERTY ALLEVIATION AND NATIONAL DEVELOPMENT

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

SECTION 1. Short Title. This Act shall be known as the "Financial Literacy
Integration Act of 2022."

SECTION 2. Declaration of Policy. The State declares financial education as a vital
tool in improving the socio-economic welfare of all Filipinos, which must be harnessed
in developing a robust, inclusive, and sustainable national economy.

Towards this end, the State shall seck to:

a. Instill financial literacy in young Filipinos by incorporating its modules to the
basic education system;

b. Integrate financial education in the implementation of poverty alleviation

[rogtams to ensure thei effectivity and sustainability
-romote financial education in all government and private workplaces; and,

d. Disseminate financial education materials to a wide audience through various
media platform.

. Introduce a separate subject on financial education in primary education to
tertiary education.

£. Provide a financial education program for overseas Filipino workers (OFWs)

SECTION 3. Definition of Terms. For purposes of this Act, the following terms
are hereby defined:

a. Financial literacy - the combination of one's understanding of financial products
and concepts; and ability and confidence to appreciate financial risks and
opportunities, to make informed choices, to know where to go for help, and to
take other effective actions to improve financial well-being;

b. Financial literacy materials — include all materials that can be used as study
or reference materials to enhance financial literacy;

c. Financial literacy module - a module used in schools that is used to teach financial
literacy to learners;

d. Poverty alleviation program - a program initiated by the national or local
government that helps the poor gain access to economic opportunities that
promote sustainable livelihood, as well as social services, such as education
and healthcare.


SECTION 4. Creation of the National Financial Literacy Council. There
shall be created a National Financial Literacy Council (NFLC) composed of the
following:

Ex-officio members:
Secretary of Education ot a representative;

Governor of the Bangko Sentral ng Pilipinas or a. representative
Secretary of Labor and Employment or a representative;

Chairperson of the Civil Service Commission or a representative;
Director General of the Philippine Information Agency or a representative;
Director General of Technical Education and Skills Authority (TESDA) or a
representative;

moan re

Appointive members:
a. Two (2) representatives from the rural banking sector;
b. A representative from civil society organizations; and,
c. A representative from the academe.

‘The Secretary of Education shall serve as Chairperson of the NFLC while the Governor
of BSP shall serve as Vice-Chairperson. The selection, appointment, and term of office
of the appointive members shall be in accordance with the pertinent provisions of
Republic Act No. 10149, otherwise known as the GOCC Governance Act of 2011.

SECTION 5. Duties of the NFLC. The NFLC shall perform the following
duties:

a. Formulate a national plan of action for the implementation of this Act, which
will include:

1. Crafting of financial education modules and their integration in the
curriculum of all levels of basic education.

2. Mandating the conduct of financial education sessions for all beneficiaries
of state-sponsored poverty alleviation programs, particularly
those that provide grants or subsidies;

3. Setting of guidelines to encourage public and private employers to
implement financial literacy programs for theit employees; and,

4, Disseminating, at least once (1) monthly, of financial education ‘materials in
all media platforms, such as, but not limited to, television, radio, print
media, online media, and social media.

b. Recommend to the President and the Congrcss all policy mattcrs rclated to the
promotion of financial education;

c. Coordinate and integrate various government and private sector activities
relating to financial education;

d. Promote the exchange of information on financial education between public and
private sectors;

e. Perform monitoring and regular impact evaluations of financial education
programs; and,

f. Exercise such other powers as may be necessary to carry out the purposes of
this Act.

SECTION 6. Creation of the Financial Literacy Promotions Office. There shall
be a Financial Literacy Promotions Office (FLPO) to be attached to the Department
of Education,

‘The FLPO shall perform the following functions:

a. Coordinate the preparation of position papers and background materials
for discussion or approval during NFLC meetings;


b. Assist the NFLC in coordinating and monitoring financial literacy
rograms and activities of all government agencies and the private sector;
¢. Submit periodic reports to the NFLC on the progress and accomplishment of
its work programs;
4. Prepare a yearly report on the status of financial literacy in the country and;
€. Perform ad hoc functions as authorized by the NFLC.

SECTION 7. Implementation in Workplaces. It is hereby mandated that all private
entities, through its Human Resources Department (HRD) ot its equivalent, shall include
‘modules of the same subject in its employee orientation or training programs. Seminars
may also be held in this regard depending on what the respective HRD deems
appropriate.

Government offices, Government-Owned and Controlled Corporations,
national agencies, and local government units, shall likewise observe the same practice
across the board.

It is also hereby mandated that the anti-poverty alleviation programs of the
Department of Social Welfarr and Development (DSWD) such as the Pantawid Pamilya
Program (4Ps), KALAHI-CIDDS, and the TUPAD program of the Deparment of
Labor and Employment (DOLE) include Financial Literacy in their trainings.

Further, all TESDA trainings shall include Financial Literacy trainings in all their
training modules.

SECTION 8. Implementing Rules and Regulations. Within sixty (60) days
from the approval of this Act, the Secretary of Education, in consultation with the
heads of the DSWD, DOLE, CSC, BSP, TESDA and PIA, shall formulate the rules
and regulations implementing the provisions of this Act.

SECTION 9. Appropriation. The amount necessary for the initial
implementation of this Act shall be charged against the appropriations of the
Department of Finance under the current General Approptiations Act (GAA),
Thereafter, the amount for its full implementation shall be included in the GAA as a
distinct and separate item

SECTION 10. Repealing Clause. All laws, decrees, executive orders,
proclamations, rules and regulations, or parts thereof inconsistent herewith are hereby
repealed or modified accordingly.

SECTION 11. Separability Clause. If any provision of this Act is held invalid or
unconstitutional, the other provisions not affected hereby shall remain valid and
subsisting.

SECTION 12 Effectivity. This Act shall take effect fifteen (15) day publication in
at least two (2) national newspapers of general circulation.

Approved,