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

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4. Dispatch
-the message remains as a
thought or a plan only, unless
the sender begins to dispatch it.
When it is dispatched, it
becomes a message. So, the
sender has to carefully dispatch
his question(s), answer(s),
order(s), thought(s),
direction(s)...etc.
6. Media
5. Time-Place Factor
- According to the time-place
- the time-place factor is an
factor element, the sender can
important element, and the
determine what kind of
sender must put it into account
medium he should use for
as to how fast and where the
transferring his message to the
message should be dealt with
receiver. The urgent event is
when sending to the receiver.
not like the normal one, and
the secret information is not
like the general one. So, for
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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