SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S, No, 
2489 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
'!; OEC -9 P2 :40 
REQUIRING THE SECRETARY OF EDUCATION TO ESTABLISH A PILOT 
PROGRAM TO A WARD GRANTS TO EDUCATIONAL AGENCIES TO DEVELOP 
FINANCIAL LITERACY PROGRAMS IN ELEMENTARY AND 
SECONDARY SCHOOLS 
EXPLANATORY NOTE 
The Constitution, Article 14, Sections 1 and 2 (2) provide: 
Section 1, The State shall protect and promote the right of all 
citizens to quality education at all levels and shall take appropriate steps to 
make such education accessible to alL 
Section 2, The State shall: 
(1) Establish, maintain, and support a complete, adequate, and 
integrated system of education relevant to the needs of the people 
and society;", 
As a result of the financial CrlSlS, consumers are more concerned about their 
personal finances than ever before, I-IousehoJd confidence in job security and future 
employment prospects, income stability, and the ability to preserve and build assets is 
reportedly plummeting; meanwhile, high fuel and food prices and tightening credit 
conditions are placing more pressure on households to maximize their financial 
decisions, 
While individuals and businesses bear the majority of the economic strain, 
children and youth are uniquely impacted by their interactions with household ilnances, 
1 


Such moments of financial trouble are teachable opportunities [or children and youth to 
learn about personal finance, and to improve their own money management skills.! 
Hence, this bill directs the Sccretary of the Department of Education to establish a 
pilot program awarding grants to ten educational agencies to develop financial literacy 
programs in elementary and secondary schools. The bill further requires grant funds to be 
used to: (1) integrate tinancial literacy programs into elementary and secondary school 
curricula; (2) provide financial literacy teacher training; and (3) collect, analyze, and 
develop the information necessary to accomplish the pilot program.2 
I http://www.newamerica.netipublications/policy/effectiveness youth financial education 1. 
2 This bill was originally filed by Rep. Cleaver before the U.S. House of Representatives (11th Congress, 
1" Session). 
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SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
1 i 
, ~', 
c~:)t;: 
'i' 
Second Regular Session 
) 
) 
) 
"1/, 
DEC -9 P 2 :40 
SENATE 
____________ 
S_' N_O, 
24 8_9 _________ 
I,_I_,'_i,_;I_\'_1-:1l IIY:_-o-'._. 
Introduced by Senator Miriam Defensor Santiago 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
,Congress assembled: 
1 
AN ACT 
2 
REQUIRING THE SECRETARY OF EDUCATION TO ESTABLISH A PILOT 
3 
PROGRAM TO A WARD GRANTS TO EDUCATIONAL AGENCIES TO DEVELOP 
4 
FINANCIAL LITERACY PROGRAMS IN ELEMENTARY AND 
5 
SECONDARY SCHOOLS 
6 
SECTION I, Short Title, - This Act shall be known as the "Financial Literacy for 
7 
Youth Act" or the "FLY Act", 
8 
SECTION 2, Definition of Terms , - For purposes of this Act: 
9 
(a) "Financial literacy" means the acquisition of knowledge and understanding of 
10 
all personal financial matters and transactions, from finance management and investment, 
11 
to being able to make sound financial decisions, including but not limited to 
12 
understanding: 
13 
(1) how to balance a check book, read a credit card statement, and calculate 
14 
interest rates; 
15 
(2) what a pay slip is, and why'taxes, and contributions for Government 
16 
Service Insurance System (GSIS), Social Security System (SSS), 
17 
Philhealth and Pag-IBIG are deducted from wages; 
18 
(3) the differences between various types of bank accounts; 
19 
(4) the significance of a credit score and how to read credit reports; 
20 
(5) the marketing techniqucs frequently used by individuals and businesses 
21 
to attract patrons; and 
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(6) the importance of saving for college and retirement. 
2 
(b) "Secretary" refers to the Secretary of the Department of Education. 
3 
SECTION 3. Requirement to Establish a Pilot Program to Award Grants to 
4 
Educational Agencies to Develop Financial Literacy Programs in Elementary and 
5 
Secondary Schools.-
6 
(a) In General. -
7 
(1) Pilot Program. - The Secretary shall establish a pilot program to award 
8 
grants to educational agencies to develop financial literacy programs in 
9 
elementary and secondary schools. 
10 
(2) Grant Awards. - The Secretary shall award grants under the pilot 
11 
program to ten (10) education agencies. 
12 
(b) Application. -
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(1) In General. - Each educational agency that desires a grant under the 
14 
pilot program shall submit an application to the Secretary at such time, 
15 
in such manner, and accompanied by such information as the Secretary 
16 
may reasonably require. 
17 
(2) Contents. - Each grant application under the pilot program shall 
18 
describe how: 
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(A) funds will be used to incorporate financial literacy into the 
20 
curriculum; 
21 
(B) the funds will be used for professional development; 
22 
(C) an educational agency will measure performance and evaluate 
23 
the effectiveness of its program. 
24 
(c) Use of Funds. - A grant award under the pilot program shall be used to 
25' integrate financial literacy programs into elementary and secondary school curriculums; 
26 
to carry out professional development, including fellowships for financial literacy 
2 


1 
,instructors and personnel (including licensed teachers, education administrators, and bank 
2 
personnel) involved in the education of financial literacy programs; to conduct program 
3 
evaluations and surveys; and to collect, analyze, and develop information necessary to 
4 
accomplish the pilot program. 
5 
(d) Maximum Grant. - A grant award under the pilot program to any educational 
6 
agency shall be not more than l12,000,000.00. 
7 
(e) Limitation on Administrative Costs. - Not more than four percent (4%) of the 
8 
amounts made available under the pilot program for any fiscal year may be used for 
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administrative costs to carry out the pilot program. 
10 
SECTION 4. Reports.-
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(a) Report by the Education Agency. - Not latcr than 90 days aftcr the conclusion 
12 
of the pilot program, an educational agency shall prepare and submit to the Secretary a 
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report that details which curriculums and policies implemented in the financial literacy 
14 
program were successful or unsuccessful, which curriculums and policies they would 
15 
recommend to other education agencies, and such further guidelines for this report as the 
16 
Secretary shall deem necessary. 
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(b) Report by the Secretary. -Not later than 180 days after the conclusion of the 
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pilot program, the Secretary shall submit to the Committee on Education a report on the 
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pilot program. 
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SECTION 5. Authorization of Appropriations. - To carry out the provisions of this 
21 
Act, there are authorized to be appropriated such sums as may be necessary for each 
22 
fiscal year 
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SECTION 6. Separability Clause. - If any provision of this Act shall be declared 
24 
unconstitutional, any other provision not affected thereby shall remain in full force and 
25 
effect. 
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1 
SECTION 7. Repealing Clause. - All laws, decrees, orders, rules and regulations,' 
2 
or parts thereof inconsistent with this Act are hereby repealed or amended accordingly. 
3 
SECTION 8. Effectivity. - This Act shall take efTect fifteen (15) days after its 
4' 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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