FINANCIAL LITERACY

SURVEY
• Do you know how to budget?
• Do you currently have savings?
• What is your short-term goal?
• What is your medium term goal?
• What is your long-term goal?
 FINANCIAL LITERACY IS...
 the ability to understand how money works in the world: how
someone manages to earn or make it, how that person manages
it, how he/she invests it (turn it into more) and how that person
donates it to help others

 the knowledge that is necessary to make financially responsible

decisions that are integral to our everyday lives
 WHY IS FINANCIAL LITERACY IMPORTANT?
1. To be able to provide for ourselves and our families.
Based on a study by the Asian Development
Bank (ADB), the Philippines ranked 68th
globally in terms of financial literacy index,
With only 25% of Filipinos who are aware
of the basics of managing their money. This
is an issue that has to be dealt with
immediately, and one way is for citizens to
become financially literate.
2. To be able to invest in the future.
Financial literacy isn’t just about solving the
money problems of the present. When you’ve
already learned enough and mastered the way
you handle money, you can start investing in
something that you can reap in the future.

3. To be able to contribute to the country’s economy.

Financial literacy also contributes greatly to the
country’s economy, especially when a good
majority of the population knows how to
manage their personal finances well. A good
Example is when citizens are saving up a good
amount of money in the bank.
 Savings Pattern of Filipino Adults

Never
experienced
saving money 25%
43% Currently
has Savings

Used to Save
but has stopped 32%
saving

Source: BSP National Baseline Survey on Financial Inclusion (2015)

Where Savings Are Kept
Informal Savings Group
2.6% 0.8% Non-stock Savings and
Cooperatives 7.5% Loan Association

32.7% 68.3%
Banks Home

Source: BSP National Survey on Financial Inclusion (2015)

 Borrowing Patterns Of Filipino Adults

Do not borrow at
all

19%
Currently

47% borrows
money

Used to but do
not borrow
34%
anymore

Source: BSP National Survey on Financial Inclusion (2015)

 Sources Of Borrowing
Informal Lenders

Banks 9%
4%
Lending/
Finance Companies 10%
Family,
54% Relatives, or
Cooperatives 9% Friends

9%
Microfinance NGOs
5%
Government Entities

Source: BSP National Survey on Financial Inclusion (2015)

Today, you will understand 2 topics about
financial literacy

1. Learn how to create a personal budget

2. Know the importance of saving money
 BUDGET
A step-by-step plan for meeting expenses in a given period of time.
(Also called a “personal spending plan.”)

3 THINGS A BUDGET CAN DO...

1. Gives you control of your financial situation

2. Reduces money-related anxiety
3. Helps you visualize where your money is being spent
HOW TO PREPARE A BUDGET

1. Track daily spending

2. Determine income and
expenses
3. Find ways to decrease spending
4. Find ways to increase income
 APPLICATIONS
• SAVING SPREE - This app shows older
kids (7+) how to spend frugally, save
money for short-term goals, how to
donate money, or invest money for their
future needs. It also teaches them how
daily lifestyle choices can make a big
difference in their accounts.
• BANKAROO - Smartphone app that is
a virtual piggy bank for children. It
teaches kids and parents about the value
of money in a simple user experience.
• iALLOWANCE - Another great app that
shows kids how to save and spend. Whether
you want to set up a weekly allowance or pay
out a special reward, this app will help you do
that. It also lets you add as many kids as
you’d like in one
• PIGGYBOT- An app for kids to track
allowance spending and saving. Instead of
cash, they’ll carry a virtual balance with you,
with accounts for saving, sharing, and
spending.
 IMPORTANCE OF SAVING

 Learn to manage money better

 Save money toward your goals
 Leave less money for frivolous spending
 Have money for emergencies
 HOW TO SAVE
• When you get your paycheck, or in your case, your “baon” put some
of that money in a savings account before you pay your bills or buy
new gadgets.
• Whether it’s in a piggy bank or in the bank, saving a fixed amount of
cash every month is important.
• Save the monetary gifts from your Ninong/Ninang and parents
every Birthday and Christmas
• Choose to walk going to school or going home instead of riding a
“motorcycle”.
• Have a part-time job during breaks.
• Avoid buying things that you don’t need.
• According to a study conducted by Philam Life, 96 percent of Filipinos
are concerned about their own and their family’s health, however, only
16 percent of them are prepared to pay for medical costs in case they are
diagnosed with a critical illness.

• There is a rising number of senior-dependents or those retirees who

depend on their children for financial help, due to lack of financial
education.

• The Filipino mindset upon receipt of salaries, as commonly-known, is

that upon receipt of salaries, spending comes in before saving. What is
left, is saved. If there’s none left, then, there’s nothing saved.

FINANCIAL LITERACY AMONG FILIPINOS

• Filipinos should save first and spend whatever is left after
putting their savings aside.
• Financial planning involves educating Filipinos on the
different types of goals that they should set: short-term,
medium-term, and long-term. Short-term goals involve
monthly living expenses that need to be paid, or the person’s
basic needs, including the setting-up of an emergency fund.
In contrast, medium term goals are those you want to
achieve in one to five years like buying a house or a car,
while long term goals are those that take longer than five
years to achieve.
 RA 10679
YOUTH
ENTREPRENEURSHIP ACT
 It is the policy of this law to establish,
maintain, and support a complete,
adequate, and integrated system of
education and training to encourage the
entrepreneurial spirit among our youth.
 YOUTH AND FINANCIAL
LITERACY PROGRAM
It is the program of the State that
mandates the inclusion of
entrepreneurship and financial literacy
program in all levels of education
nationwide.
 FINAL THOUGHTS:

Taking control of your finances instills

empowerment and prepares you for a
fiscally sound future.