PROMOTING FINANCIAL

LITERACY IN THE
CLASSROOM
-AILEEN L. MOICO, CPA, MBA
 BACKGROUND
Recent studies show that Filipinos struggle to understand basic
financial concepts, with a Bangko Sentral ng Pilipinas (BSP)
survey showing that 41% of Filipinos can only answer one of three
financial literacy questions correctly and a meager eight percent
can answer three.

About 36.9 million Filipino adults have no bank account as of

the fourth quarter of 2020, data from the
Bangko
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adult population.
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Filipinos have traditions and beliefs that affect their way of living
and personal financial decisions.
 A Case for High School Financial Literacy

❑ Encouraging and teaching high school students to feel in

control of their own financial future boils down to educator
support, the right technology and curriculum, and of course,
sufficient governmental support.

❑ It is high time that students be required to pass a financial

literacy course to graduate. Students will only benefit from
making healthy financial choices, starting at a young age. The key
is realizing that our nation’s economic tomorrow depends on the
financial and business skills we give them today.

SOURCE: FORBES.COM/WHY FINANCIAL

LITERACY IN SCHOOLS MATTER TODAY FOR THE
WORKFORCE OF TOMORROW/STUART
DRAPER/2019
DEPED’S VIEW ON FINANCIAL LITERACY

With this, DepEd issued its Financial Education Policy under DepEd
Order No. 022, Series of 2021 which aims to help learners and teaching
and non-teaching personnel to make sound financial decisions by
making Financial Education an essential part of school lessons and
activities for learners and provision of capability building opportunities for
teaching and non-teaching personnel.

“Financial Education is vital in developing a financially literate

citizenry,
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advantage
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explained Education Chief Leonor Magtolis Briones. “Financial literate

citizens can contribute more productively to inclusive growth and be
more effective agents of nation building,” she added.
Agenda
DEFINE FINANCIAL LITERACY
01
02 KNOW THE IMPORTANCE OF
FINANCIAL LITERACY

BE ORIENTED ABOUT
03 FUNDAMENTAL
COMPONENTS OF FINANCIAL
LITERACY

04 LEARN STRATEGIES ON HOW

TO PROMOTE FINANCIAL
LITERACY
WHAT IS FINANCIAL
LITERACY?
 DEFINITION
⮚ Mandell (2009) defines financial literacy as “the ability to
use knowledge and skills to manage one’s financial
resources effectively for lifetime financial security.”

⮚ Financial literacy combines financial, credit, and debt

management knowledge that is necessary to make
financially
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our everyday
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⮚ Financial literacy includes payingProgrammer
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budget, and understanding the difference between various

financial instruments. (Investopedia.com)
• Financial literacy combines financial, credit, and debt
management knowledge that is necessary to make
financially responsible decisions—choices that are integral
to our everyday lives.

• Financial literacy includes paying off debt, creating a

budget, and understanding the difference between
various financial instruments. In sum, financial literacy
has a material impact on families as they try to balance
their budget, buy a home, fund their children’s education,
or ensure an income for retirement.
BENEFITS OF
FINANCIAL
LITERACY
 BENEFITS OF FINANCIAL LITERACY

❖ Effective management of
money and debt
❖ Reduction of expenses
❖ Increase in ethical through better regulation
decision-making when
selecting insurance,
loans, investments, and
using a credit card ❖ Less financial stress and
anxiety

❖ creation of a structured
budget
 FUNDAMENTAL
COMPONENTS OF FINANCIAL
LITERACY
FUNDAMENTAL COMPONENTS
OF FINANCIAL LITERACY

BUDGETING

INVESTING

BORROWING

TAXATION
 BUDGETING
❖ Budgeting is the process of creating a plan to spend your money. This
spending plan is called a budget. Creating this spending plan allows you to
determine in advance whether you will have enough money to do the things you
need to do or would like to do.

❖ If you don't have enough money to do everything you would like to do,
then you can use this planning process to prioritize your spending and
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focus your Director

money on the things that are most important to you.
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❖ NEEDS
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BASIC RULE IN BUDGETING: 80/20-PARETO PRINCIPLE

 INVESTING
❖ An investment is an asset or item that is purchased with
the hope that it will generate income or will appreciate in the
future.Based on this investment meaning, there are two
keywords to remember: time and appreciation. The goal of
any investment vehicle is to grow your money over time.

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❖ There
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has to be a return on investment (ROI), which is a
performance measure that assesses how efficient an investment
is. The higher the ROI, the more profitable
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 INVESTING
❖ Ownership investments basically let you put in money and earn as the company grows or profits over
time. They’re the most profitable, but they’re also considered to be the riskiest. Examples of ownership
investments are:

Stocks – Investing in stocks makes you a part owner of a company, giving you the right to a portion of
the company’s value and income.
Business – Entrepreneurship focuses on the creation of a product or service that you can sell to others,
giving you enormous potential returns.
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Real estate – Buying a piece of land or property is also considered an ownership investment. You pay
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for it and expect it to increase in value. You can also use it to earn money by renting it out or reselling it.
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Precious metals and collectibles – Gold, paintings, and signed limited edition merchandise are all
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examples of ownership investments. Most collectors and investors who invest in precious metals and
rare collectibles expect the values of these items to increase.
 INVESTING
❖ You can lend a company money with interest and expect returns, even if they’re modest returns.
Lending investments are considered less volatile and low risk because you can take your money
back anytime. Here are some examples of lending investments.

Bonds – When you purchase a bond, you loan money to a corporation or an organization, and you get paid
with a fixed interest rate.
Certificate of Deposits – Issued by banks as proof that you have agreed to leave a certain amount of
money with them,Name
Certificates
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accounts where youDirector
can withdraw your money anytime, CDs require you to leave your money with the
bank for a certain period.
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accounts – The most popular form of lending investment and perhaps the most feasible
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investment for beginners due to its simplicity and accessibility is the savings account. The idea is to put
your money in a bank account for safekeeping which will earn profits from monthly interests. However,
compared to other types of investments, the returns are usually lower.
 BORROWING
❖ Borrowing means to take money from a source, with a formal
agreement that the funds will be repaid by a certain date and,
usually, in stated regular installments. Most borrowed funds incur
interest, meaning that the borrower pays an additional amount—
a percentage of the sum they are borrowing—as compensation to
the lender for extending the funds.
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❖ Borrowing can often be a more efficient use of your money,
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too. Even if you could afford to buy something outright, it might
not make sense to tie up all your funds
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in it. BorrowingName
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allows
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you to spread funds around in different ways or in a variety of
investments—a practice called leveraging, in finance.
 TAXATION
❖ Taxation is defined as the imposition of compulsory levies on
individuals or entities by governments. Taxes are levied in almost
every country of the world, primarily to raise revenue for
government expenditures, although they serve other purposes as
well.
❖ Gaining knowledge about the different forms of taxation and how
they impact
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financialDirector
literacy. Whether it be employment, investment, rental,
inheritance, or unexpected, each source
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of income Name
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differently.
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-be updated with BIR Regulations

-know your taxes
 WAYS ON HOW
TO PROMOTE
FINANCIAL
LITERACY IN THE
CLASSROOM
PROMOTING FINANCIAL LITERACY IN THE CLASSROOM
4. Research more
about how you can
do it and
experience it also
by doing activities
related to finance
so you can share it
2. Provide regular, to them.
periodic sessions-
motivate them, tell your
lessons/experiences.
Make it fun and
interactive.
3. Let them experience
things about finance.-
conduct assessments and
1.Get to know your activities about financial
students- literacy.
Communicate with
their parents.
 ✔ Building up students’ financial literacy is critical not only to their
understanding of personal finances, but also to their role in the
local and global economy as consumers, employees, and
employers.

✔ Teachers and parents have an important role in equipping students

with the knowledge and skills to make healthy and informed
financial decisions.

✔ Setting simple, age-appropriate goals that focus on the value of

money, the importance of budgeting and saving, and evaluating the
consequences of financial decisions, sets the foundation for
students to become financially confident adults.
You can Resize without
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FREE AILEEN L. MOICO,CPA, MBA

PPT Unifast Accountant
Commission on Higher Education
TEMPLATES Regional Office V
www.allppt.com
amoico@ched.gov.ph