Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

TWENTIETH CONGRESS:
First Regular Session

HOUSE BILL NO. 424

Introduced by HON. MIGUEL LUIS R. VILLAFUERTE

EXPLANATORY NOTE

‘2022 study by the Bangko Sentral ng Pilipinas (BSP) revealed that only 25% of adult Filipinos
possess basic financial literacy, as reflected in their knowledge of budgeting, saving. and responsible
credit use.' An article published by the UN Joint SDG Fund observes that the low level of financial
literacy among adults can be traced back to the lack of financial education during their formative years ?

Research further highlights that access to financial education in the Philippines remains limited.
Many Filipinos tend to spend before saving, resulting in lttle to no savings after meeting daily expenses.
Additionally, the increasing number of older adults who depend financially on their children, largely due
to prevailing cultural expectations and inadequate financial knowledge, creates a recurring cycle of
financial strain across generations.’ These realities underscore the urgent need to equip youth with
strong financial literacy knowledge and skills.

To institutionalize financial literacy as a national priority, the Philippine government enaéted
Republic Act No. 10922, or the Economic and Financial Literacy Act in 2016, which designates the
second week of November as Economic and Financial Literacy Week. However, this law primarily
supports advocacy and awareness activities, without mandating the integration of financial literacy as
a fundamental component of the formal education system.

Hence, this bill proposes to institutionalize financial literacy across all levels of education, from
elementary to tertiary and technical-vocational programs. It seeks to empower Filipino leamers with
practical and age-appropriate financial competencies that will help them make informed economi
choices, avoid predatory schemes and scams, and plan effectively for their futures. Beyond individual
benefit, financially literate citizens contribute to inclusive growth and economic resilience.

By integrating financial literacy into the core curriculum of public and private educational
institutions, we invest in a generation that is not only academically equipped but also economically
capable. In an age of digital finance, fast-evolving financial technologies, and rising household debt,
this proposed measure is both timely and necessary.

In view of the foregoing, the swift passage of this meas:

* Bangko Sentral ng Pilipinas. (2022). BSP Financial Inclusion Survey 2021 Report ntegSfwww.bsp.gov.ph

* UN Joint SDG Fund. (2021, November 8). The compounding problem of financial literacy in youth.

hits /hointsdgfund org/articte/compounding-problem-financial-ilteracy-youth

> Bolt, U. (2024, March 5). The financial if of Filipinos: insights into wealth distribution and financial Iteracy in the Philippines.
More ThanDigital.https:/morethandigitalinfalenvfinencial-ife-of-ilpinos-insights-wealth-distibution-financial-iteracy-philopines/


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Queson City

TWENTIETH CONGRESS
First Regular Session

424

HOUSE BILL NO.
Introduced by HON. MIGUEL LUIS R. VILLAFUERTE

AN ACT INSTITUTIONALIZING FINANCIAL LITERACY EDUCATION IN ALL PUBLIC
AND PRIVATE EDUCATIONAL INSTITUTIONS AND APPROPRIATING FUNDS
THEREFOR

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 Education Act.”

SECTION 2. Declaration of Policy. It is the policy of the State to promote the economic well-
being of its citizens through education. Towards this end, the State shall develop and
institutionalize a national framework for financial literacy and ensure its integration in the
academic curriculum at all levels to cultivate financially responsible, independent, and
empowered citizens.

SECTION 3. Objectives. The objectives of this Act are as follows:

(a) To ensure that learners across all educational levels receive age-appropriate and
developmentally relevant financial education that meets their evolving needs at
different life stages and is responsive to the changing economic conditions;

(b) To provide sustained training and professional development in financial education for
teachers and education personnel in both the government and private sectors who will
play a key role in mentoring the youth and promoting sound financial decision-making;

(c) To establish a national framework that supports the structured and consistent delivery
of financial education and the professional development of educators; and

(d) To expand public access to quality financial education and improve the overall level of
financial literacy among Filipinos, thereby contributing to personal financial well-being,
long-term family sustainability, and national economic resilience.

SECTION 4. Coverage. This Act shall apply to all public and private educational institutions
across the country, including:

(a) Elementary, secondary, and senior high schools under the supervision of the
Department of Education (DepEd);

(b) Local universities and colleges (LUCs), state universities and colleges (SUCs), and
private higher education institutions (HEIs) under the Commission on Higher Education
(CHED); and

(c) Public and private Technical-Vocational Institutions (TVIs) regulated by the Technical
Education and Skills Development Authority (TESDA).

SECTION 5. Curriculum Integration. Financial literacy education (FLE) shall be integrated
into the core curriculum at all levels of the education system, whether as a dedicated subject


or as a component of existing subjects, depending on the developmental stage, academic
capacity, and educational track of the learners.

The financial literacy curriculum shall be designed to equip students with essential knowledge
and practical skills for managing personal and household finances. The content and teaching
methodology shall be age-appropriate, culturally relevant, and adaptable to the evolving needs
of Filipino learners in a modern financial environment.

It shall cover, but not be limited to, the following topics:

(a) The forms, functions, and uses of money in daily life, and its relation to work, income,
and productivity;

(b) Planning and managing personal and family finances, including making informed
spending decisions and setting financial goals;

(c) Preparing and evaluating personal budgets and monitoring expenses;

(d) Saving strategies, the responsible use of credit, and debt management

(@) Introduction to banking and financial services, including digital and online financial
tools;

(f) Understanding investment options, assessing financial risks, and the basics of
financial planning;

(g) Consumer rights, obligations, and responsible economic participation;

(h) Entrepreneurship and the development of personal financial initiatives.

(i) Identification and prevention of financial scams, fraud, and predatory practices; and

(i) Other relevant and emerging financial literacy topics based on national and global
financial trends.

SECTION 6. Inter-Agency Coordination. The DepEd, CHED, and TESDA shall collaborate
with the Bangko Sentral ng Pilipinas (BSP), Department of Finance (DOF), and Securities and
Exchange Commission (SEC), and other relevant agencies in developing the academic
standards, curriculum content, and learning materials for financial literacy education. These
agencies shall jointly issue the necessary guidelines to ensure that the course content is
consistent with national financial education goals and aligned with the financial education
standards and regulatory benchmarks set by the aforementioned institutions.

SECTION 7. Teacher Training and Capacity Building. The concerned agencies shall design
and implement training programs for teachers and instructors to ensure the effective delivery
of financial literacy concepts. incentives and Continuing Professional Development (CPD)
credits may be granted to those who complete such training.

To the extent that funds are available, Local School Boards shall support the delivery of
professional development programs for financial literacy educators in public elementary and
secondary schools. These programs, developed or endorsed by the Department of Education,
shall be made accessible at the most feasible and convenient locations for participating
teachers

Higher education institutions and technical-vocational schools are likewise encouraged to
coordinate with CHED and TESDA, respectively, for the implementation of similar professional
training programs aligned with the national financial literacy framework.

SECTION 8. Public Awareness and Community Outreach. Schools shall be encouraged to
conduct financial literacy seminars and community-based learning activities during Economic
and Financial Literacy Week pursuant to Republic Act No. 10922, and other suitable
occasions, involving parents and local government units (LGUs), and community
stakeholders.


SECTION 9. Appropriations. The amount necessary for the initial implementation of this Act
shall be charged against the current appropriations of DepEd, CHED, and TESDA. Thereafter,
such sums as may be necessary shall be included in the annual General Appropriations Act
(GAA).

SECTION 10. Implementing Rules and Regulations. Within ninety (90) days from the
effectivity of this Act, the DepEd, CHED, and TESDA, in consultation with the BSP, DOF, SEC,
and other stakeholders, shall promulgate the necessary rules and regulations to carry out the
provisions of this Act.

SECTION 11. Separability Clause. In the event that any of the provisions of this Act is
declared unconstitutional or invalid, the remaining provisions not affected thereby shall remain
in full force and effect.

SECTION 12. Repealing Clause. All other laws, presidential decrees, executive orders, rules
and regulations inconsistent with or contrary to the provisions of this Act are hereby repealed
or modified accordingly.

SECTION 13. Effectivity. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,