BSP Teams Up With DepEd to Launch Flagship Financial Education Policy
Financial literacy has been a topic of concern in the Philippines for quite some time, a fact that the Bangko Sentral ng Pilipinas (BSP) is well aware of. In 2015, a World Bank study reported that Filipino adults could only correctly answer three out of seven financial literacy related questions that covered basic topics like numeracy, compound interest, inflation, and investments.
BSP has teamed up with the Department of Education (DepEd) to rectify the country’s low financial literacy levels through a flagship program for financial education: the Financial Education Policy.
To get to the bottom of the lack of adult knowledge in financial concepts, BSP and DepEd are focusing their efforts on improving elementary and secondary financial education. The same international study that reported the lack of financial education in the Philippines also pointed out that money management habits formed in childhood stay into adulthood.
Launched at the 2nd BSP Financial Education Stakeholders Expo in late November, the Financial Education Policy is a joint effort of the finance and education sectors to improve the financial literacy of the youth sector. With the right education, majority of the Filipino youth could soon be able to make informed financial decisions, manage diversified investments, competently handle debt, and prioritize saving.
According to BSP, the policy will act as a roadmap for the “efficient and effective integration of financial education concepts within the K to 12 curriculum.” The policy will be a guideline for educators to teach financial concepts to their students, while imparting wise financial decision-making skills. Over 800,000 DepEd personnel, 29 million learners, and future students will be affected by this policy, and possibly even more.
Like any good financial decision, the policy itself is a long-term investment for DepEd’s constitutions, which are the Filipino youth. The policy aims to impart knowledge that will help students understand, select, and use financial services properly in the future, to help them achieve financial stability. The policy could also potentially improve the country’s socioeconomic position as a booming economy required a financially literate population.
DepEd undersecretary Annalyn M. Sevilla, BSP governor Benjamin E. Diokno, and NEDA undersecretary Rosemarie G. Edillon
Present at the event were Bangko Sentral ng Pilipinas (BSP) governor Benjamin E. Diokno, National Economic Development Authority (NEDA) undersecretary Rosemarie G. Edillon, and Department of Education (DepEd) undersecretary Annalyn M. Sevilla. Over 1,000 stakeholders were present to participate in the expo and witness the policy’s launch.