BUILDING AND

ENHANCING NEW
LITERACIES ACROSS THE
CIRRICULUM
EDUC 85
BSE 202 - MATH
FINANCIAL LITERACY
Financial Literacy
It is the ability to use knowledge and skills to manage
one’s financial resources effectively for lifetime financial
security.
Benefits of Financial Literacy
Financial literacy enable people to understand and apply
knowledge and skills to achieve a lifestyle that is financially
balanced, sustainable, ethical, and responsible.
Financial Literacy in the Philippines
Based on “State of Financial Education in the Philippines” (2017):
 Estimated 20 M Filipinos saved money but only half had bank account
(World Bank, 2014).
 PH does not have a national strategy for financial education and
literacy (Asian Development Bank, 2015).
 Stating that while institutions strive to broaden financial services,
financial literacy should also complement (Bangko Sentral ng
Pilipinas, 2016).
 Only 25% of Filipinos are financially literate, this means ¾ of Filipinos
have no idea about inflation, risk diversification, insurance,
compound interest and bank savings (Standard & Poor’s).
 Ten years after discovery of the stock market, still less than one
percent of PH population is invested in it.
 More than 80% of the working middle class have no formal financial
plan.
 Because of these findings, there is a need to recognized to
strengthen the financial education in the country. With this, in supports
to RA No. 10922 which designates second week of November as Economic
and Financial Literacy Week. It is also aligned with the objectives of the
Philippine National Strategy for Financial inclusion, particularly the pillar
on Financial Education and Consumer Protection.
Developing Personal Financial Literacy
One’s attitude about money is heavily influenced by the
parents attitude an behavior about money. The attitudes you
formed early in life probably affect how you save, spend,
and invest today.
Six major characteristic types in how people view money:
 Frugal – seek financial security by living below their means and saving
money.
 Pleasure – use money to bring pleasure to them selves and to others.
 Status – use money to express their social status.
 Indifference – some people place very little importance on having
money and would rather grow their own food and craft their own
clothes.
 Powerful – use money to express power or control over others.
 Self-worth – people who spend money for self-worth value how much
they accumulate and tend to judge others based on the amount of
money they have.
Standards for developing understanding of financial literacy
through economic perspective:
 Earning income
 Buying goods and services
 Saving
 Using credit
 Financial investing
 Protecting and insuring