REPUBLIC OF THE PHILIPPINES
House of Representatives
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No.246 4

Introduced by Representative Alfredo D. Vargas II

EXPLANATORY NOTE

Section 14, Article XII of the Philippine Constitution explicitly provides that
sustained development of a reservoir of Filipino entrepreneurs and managers shall
be promoted by the State.

‘The Philippines is an entrepreneurial country. Slowly, entrepreneurship is
becoming the backbone of the country’s economy. Small and medium-sized
enterprises comprise around ninety nine (99) percent of the establishments in the
country. However, one of the problems encountered by our entrepreneurs is the
lack of adequate knowledge on business techniques and financial management at
the onset.

Experts in both fields of financial management and entrepreneurship believe
that ignorance is the utmost risk posed relative to these fields. Thus, the inculcation
of these concepts in the early years of child formation and education shall foster and
develop individual literacy and capacity on basic finance and entrepreneurship.

In the pursuit of a globally competitive labor force, many countries have
already established financial education and entrepreneurial institutions. In fact, they
have already included these fields in their basic education curricula. In our aim to
achieve a more advanced stature in the world economy, it is necessary to also
establish our formal training and education in these domains.

It is imperative that government paves the way towards arming the students
with fundamental financial management and entrepreneurship know-hows.
Through this, we are able to deliver highly relevant programs to our students,
address this pressing need for financial literacy, and be at par with the global
standards on basic financial education.


Through the passage of this measure, we have a greater opportunity for
country productivity and global competitiveness.

REDO D. VARGAS IL


REPUBLIC OF THE PHILIPPINES
House of Representatives
Quezon City

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 246 4

Introduced by Representative Alfredo D. Vargas III

AN ACT
REQUIRING INCLUSION OF BASIC FINANCIAL MANAGEMENT AND
ENTREPRENEURSHIP AS SEPARATE SUBJECTS IN THE ELEMENTARY AND HIGH
SCHOOL CURRICULA, RESPECTIVELY

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

SECTION 1. Declaration of Policy. ~ It is the policy of the State to establish,
maintain and support a complete, adequate and integrated system of education
which is relevant to the needs of private and public school students.

SECTION 2. Basic Financial Management Subject in Elementary Level.
There shall be a separate subject on basic financial management in the fifth
and sixth grades of elementary education.

SECTION 3. Entrepreneurship Subject in the High School Level. - There
shall be another separate subject on entrepreneurship in the senior year curriculum
of both public and private secondary schools nationwide,

SECTION 4. Integration of Basic Financial Management and
Entrepreneurship Concepts. - In order to achieve the desired set of values and
optimum financial and entrepreneurial literacy, there shall be an integration of basic
financial management and entrepreneurial concepts in the other existing subjects
throughout the basic education curricula.

SECTION 5. Development of Subject Content. - The Department of
Education (DepEd) Secretary shall constitute two (2) technical committees, one for
each subject, and appoint a Head Subject Specialist for each committee from the
Bureaus of Elementary Education and Secondary Education. Each Head Subject
Specialist shall be the lead person in coordinating all activities necessary for the
development, formulation and implementation of the subject in the elementary and


secondary levels. The members of the committee shall include representatives from
the following: (a) accredited national private school administrators association, (b)
accredited national public school administrators organization, (c) Bangko Sentral ng
Pilipinas - Financial Consumer Affairs Group, (d) Financial Executives Institute of
the Philippines, (e) Psychological Association of the Philippines, and (f) civil society
organizations on financial management and entrepreneurship, among others.

The committee shall conduct a multi-sectoral consultation and dialogue with
education stakeholders, i.e, public and private high schools, members of the national
chambers of commerce and industry, leading entrepreneurs, and the public at large,
for the purpose of defining the appropriate content, limitation and scope of the basic
financial management and entrepreneurship subjects: Provided, that the elementary
subject on basic financial management shall include the following topics: (1) history
of money and finance, (2) earning money, (3) spending money, (3) financial
management, (4) savings and investments, and (5) budgeting, among others.
Provided further, that the high school subject shall include the following
entrepreneurial subject matters: (1) how to start-up a business, (2) fund sourcing,
(3) business management, (4) contemporary entrepreneurial practices, and (5)
practical applications: Provided, further, that each subject shall include the skills-
formation of the said subjects; and shall be in line with the current policy of
industrial progress and global competitiveness.

SECTION 6. Teacher Preparedness and Training. - The same constituted
committees shall prepare a manual/module for the teachers who will be handling
both subjects. Also, the Department of Education shall be mandated to conduct
trainings and preparedness courses throughout the country.

SECTION 7. Budget. - The funds necessary for the implementation of this Act
shall be charged against the appropriations for the Department of Education of the
current Fiscal Year. Thereafter, the amount necessary for the continued
implementation shall be included in the annual General Appropriations Act.

SECTION 6. Implementing Rules and Regulations. - The Secretary of the
Department of Education, in consultation with the constituted committees, shall
formulate the necessary implementing rules and regulations for the effective
execution of this Act.

SECTION 7. Repealing Clause. - All laws, decrees, orders, rules and
regulations, or parts thereof inconsistent with this Act hereby repealed or modified
accordingly

SECTION 8. Effectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in two (2) newspapers of general circulation.

Approved,