EFFECTIVE

FINANCIAL
EDUCATION
COMMUNICATION
MODEL
PREPARED BY:

▸ Kate Marie C. Almacen

▸ Marisa Sylvia C. Caalim
▸ Julie D. Cairo
▸ Zoren A. Garcia
▸ Kissy T. Lor

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RATIONAL

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 Based from the Global Financial
Literacy Survey, results show that only 25%
of adult respondents in the Philippines were
financially literate, a figure lower than the
global average of 33%.

1 Financial literacy includes

understanding of various financial areas
including topics related to managing personal
finance, money, borrowing, and investing.
Reasons for drastic decrease in financial literacy:
•lack of interest
•financial stress (Wong,2018)
•social stigma (Paulin and De La Rosa, 2018)

Related Literatures:
1. Research by the European Centre of Technology about The
Importance of Understanding Finance Fundamentals
2. The Secret to Saving and Building Your Future by Bo Sanchez
3. The study about The Role of Financial Literacy on the
Development of Insurance Awareness written by Nilufer
Dalkilic & Erdem Kirkbesoglu
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THE EFFECTIVE
FINANCIAL
EDUCATION
COMMUNICATION
MODEL

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7
ESSENTIAL
COMPONENTS

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1. Sender - must be known 2. Goal - the message must 3. Message - must be well
in his message to the be clear and specific; if not, informing and applicable at
receiver, otherwise he it will be vague and the same time.
will be anonymous, and unreachable.
nobody will tend to listen
to him at work.

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 6. Media
4. Dispatch 5. Time-Place Factor
- According to the time-
-the message remains as a - the time-place factor is an
place factor element, the
thought or a plan only, important element, and the
sender can determine what
unless the sender begins to sender must put it into
kind of medium he should
dispatch it. When it is account as to how fast and
use for transferring his
dispatched, it becomes a where the message should
message to the receiver.
message. So, the sender be dealt with when sending
The urgent event is not like
has to carefully dispatch his to the receiver.
the normal one, and the
question(s), answer(s),
secret information is not like
order(s), thought(s),
the general one. So, for
direction(s)...etc.
acceptable result of the
communication, the sender
has to use the right channel
for the right message and
receiver at the best time
and place.
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7. Reception
The sender must be sure that his
message has been received by
any means of reception that is
accessible to the receiver.
8. Receiver
The receiver must be up to the
expectation of the sender in terms
of the:
* language
* capacity of response
* ability of action
* span of the sender's dealings
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9. Understanding –
is the key of communication effectiveness. In the absence of this element all
endeavors of communication might be in vain, and a waste of time and
efforts. To maintain a good level of understanding with the subordinate,
the receiver has to make his wording oral and/or written, simple, clear, and
free from metaphor. In other words, the element of understanding is a
sharing attribute between the sender and receiver.

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10. Response
Now, the element of response is the actual sign of the party's
receiving the message. He has to act according to the
contents of the message. It is the real evidence of the
receiver's understanding of what the sender wants him/her to
do. If he doesn't respond to the message, it means either :

• the message is not well perceived by the receiver, or

• the receiver doesn't want to carry out the message, or
• the receiver is hesitant to act upon the message.

In any of these expectations, a fast justification for such attitude is

needed through a timely response to the sender.

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BARRIERS TO
EFFECTIVE FINANCIAL
EDUCATION
COMMUNICATION

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Here are the barriers that hinder us in
communicating effectively with financial
education:
1. Perceptual Barriers
• Lack of interest
• Social Stigma

2. Interpersonal Barriers
• Financial stress

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CONCLUSION

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Effective Financial Education
Communication Model - Addressing the
Communication Problem
•Lack of interest
Solution:
A. Understanding Goal of Communication
B.Entity Specific Information
C. Simplicity and Brevity
D. Comprehensive Format

• Social Stigma and Financial Stress

A. Encouraging Clear Response

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