THE House of Representatives on Wednesday overwhelmingly passed on third and final reading a measure that seeks to boost financial literacy among Filipinos through the function of the Technical Education and Skills Development Authority (TESDA).

Garnering 246 affirmative votes during the plenary session was House Bill (HB) No.9292, or the proposed Act mandating the inclusion of a personal financial literary course in the Technical-Vocational Education and Training (TVET) curriculum of technical vocational institutions (TVI) and TESDA training centers.

The bill seeks to equip the students with basic knowledge and additional skills in wealth management and contingency planning, especially in properly handling their finances, prepare them to make well-informed financial decisions upon entering the workforce, and help them master financial literacy as an essential life skill in their day-to-day transactions and other activities.

Speaker Ferdinand Martin G. Romualdez said that once enacted, HB No. 9292 would broaden the opportunities and venues for teaching a personal financial literacy course to strengthen financial education among Filipinos.

“Financial literacy is a precious skill that, unfortunately, few have. Filipinos who are financially literate are more likely to avoid financial frauds, develop financial discipline, use debt responsibly, and save their money for education or retirement,” Speaker Romualdez said.

Some of the principal authors are Reps. Jose Manuel Alba, Mark Go, Eulogio Rodriguez, Joseph Gilbert Violago, Franz Pumaren, Jefferson Khonghun, Mikaela Angela Suansing, Maria Fe Abunda, Antonieta Eudela, Edgar Chatto, Franz Castro, Lani Mercado-Revilla, Joselito Sacdalan, Dalog, Carl Nicolas Cari, Jose Gay Padiernos, Eric Buhain, Jurdin Jesus Romualdo, and Manuel Jose Dalipe.

The bill shows that TVIs and TESDA training centers shall provide the necessary financial education to tech-voc students while helping them learn and develop other practical tech-voc skills and competencies.

The measure provides mandatory inclusion of Personal Financial Literacy Course (PFLC) in the TVET curriculum.

“It shall focus solely on personal finance based on the policies, guidelines, and standards set jointly by the TESDA, the Bangko Sentral ng Pilipinas (BSP), Department of Finance (DOF), Securities and Exchange Commission (SEC), and the Insurance Commission (IC),” HB No. 9292 reads.

A passing grade in the PFLC shall be required for graduation or completion of the course.

According to the proposed statute, the PFLC shall provide instructions on personal financial literacy and shall include the following contents: a) Concept of personal finance; b) Time value of money; c) Consumer behavior in the context and culture of the Philippines; d) Debt management and rehabilitation; e) Savings, emergency, and resilience fund development; f) Investment concepts and planning; g) Retirement planning; h) Insurance planning; i) Credit scoring and credit reports; j) Concept of financial education; k) Pertinent topics on effective utilization of digital payment platforms, such as modules on observing cyber-hygiene to help safeguard cybersecurity, data integrity, and consumer protection in adopting digital financial services; and l) Other financial literacy issues and concerns.

“The TESDA shall collaborate with the BSP, DOF, SEC, and IC to develop academic standards, curricula, and materials for the PFLC.

These agencies shall jointly issue the proper guidelines for this purpose,” the bill reads.

The content of the PFLC shall be aligned with the standards set by the aforementioned agencies.

AUTHOR PROFILE

Ryan Ponce Pacpaco