Personal Financial Literacy Course in the Tertiary Education Curriculum Act

CONGRESS OF THE PHILIPPINES TWENTIETH CONGRESS First Regular Session HOUSE OF REPRESENTATIVES H. No. 7628 BY REPRESENTATIVES MERCADO-REVILIA, REVILIA (B.), REVILLA (R.J.), ORETA, MONTES, ALBA, ROMUALDEZ (Y.M.), ROMUALDEZ (A.J.), ACIDRE, GUINTU, MARCOS, CASTRO, SINGSON-MEEHAN, PLEYTO, LOPEZ, COJUANGCO (J.E.M.), LARA, GATO, YNARES, HERNANDEZ (F.), SOLON, TUAN, CALDERON, GATCHALIAN, VILLAFUERTE (M.L.), ALANO, ROMULO, SUANSING (B.V.), NAVA, FRESNEDI, DAGOOC, GALANG, CAGAS, DAYANGHIRANG, CRUZADO, YATCO, COLLANTES, GALEOS, CRUZ (A.), LAGBAS, DIMAGUILA, OAMINAL (H.), BAUTISTA (J.M.), ROMAN, DAZA, BARONDA, SALVADOR, BOCOBO, CO, SALI, DEGAMO, PIMENTEL, SAN FERNANDO, LUMAYAG, ALVAREZ (M.), MARQUEZ, MOMO, RODRIGUEZ (G.), POE, PRIMICIAS-AGARAS, FLORES, ADIONG, CHUA-TAI, ESPARES, AMANTE, YU (J.K.), YAP (J.G.), VAMSUAN, YAP (C.), CO-PILAR, RIVERA, BAUTISTA-LIM, PUNO AND TAN (K.M.) AN ACT MANDATING THE INCLUSION OF A PERSONAL FINANCIAL LITERACY COURSE IN THE TERTIARY EDUCATION CURRICULUM OF HIGHER EDUCATION INSTITUTIONS, TECHNICAL-VOCATIONAL INSTITUTIONS, AND TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY TRAINING CENTERS Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Skort Tile - This Act shall be known as the "Personal Financial Literacy

Course in the Tertiary Education Curriculum Act." DC. 2. Declaration of Policy. - Recognizing financial literacy as an essential life skill, ell as the compiementary role of tinancial education in promoting the economic well-being Filipinos, it is hereby declared the policy of the State to establish a strong foundation of financial literacy of students, trainees, and employees in order to create a highly skilled, knowledgeable, and well-informed future generation of Filipinos.

To this end, the State also seeks to broaden and strengthen higher education and technical- vocational education and training (TVET) programs, including financial education and literacy, to enable tertiary education students to develop the appropriate skills to make well-informed financial decisions, and desirable work habits upon employment.

SEC. 3. Objectives. - This Act shall have the following objectives:

(a) To ensure that higher education institutions (HEls) and technical-vocational institutions (TVIs) and Technical Education and Skills Development Authority (TESDA) training centers shall provide the necessary financial education to tertiary education students while at the same time helping them learn and develop other forms of knowledge, skills, and competencies; (b) To equip the students with basic knowledge and additional skills on wealth management and contingency planning, especially in properly handling personal finances, making well-informed financial decisions upon entering the workforce, and mastering financial literacy as an important life skill in day-to-day transactions and other activities; and (c) To broaden the opportunities and venues for the teaching of a personal financial literacy course to strengthen financial education among Filipinos so they can avoid financial frauds, develop financial discipline, use debt responsively and save for education or retirement.

SEC. 4. Mandatory Inclusion of a Personal Financial Literacy Course in the Tertiary

Education Curriculum. - All public and private HEIs, TVIs, and TESDA training centers are mandated to offer a Personal Financial Literacy Course (PFLC) to tertiary education students as part of the curriculum of the degree programs of HEls recognized by the Commission on Higher Education (CHED) and the TVET curriculum in TESDA-registered TVIs and TESDA training centers. It shall focus solely on personal finance based on the policies, guidelines, and standards set jointly by the CHED, TESDA, Bangko Sentral ng Pilipinas (BSP), Department of Finance (DOF), Securities and Exchange Commission (SEC), and the Insurance Commission (IC). A passing grade in the PFLC shall be required for graduation or completion of the degree program or TVET course.

SEC. 5. Contents of Personal Financial Literacy Course. - 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; (4) Investment concepts and planning; (g) Retirement planning; (h) Insurance planning; (Credit scoring and credit reports;

(i) 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 (1) Other financial literacy issues and concerns.

SEC. 6. Roles of Government Agencies, Offices, and Instrumentalities. - The CHED and

the TESDA shall collaborate with the BSP, DOF, SEC, and the IC in developing academic standards, curricula, and materials for the PFLC. These agencies shall issue jointly the proper guidelines for this purpose. The content of the PFLC shall be aligned with the standards set by the aforementioned agencies. SEC. %. Implementing Rules and Regulations. - Within ninety (90) days from the approval of this Act, the CHED and the TESDA shall, in consultation with the BSP, DOF, and other relevant stakeholders, issue rules and regulations to implement its provisions. invalid or 8 sparal, are in pray or ron, say to provision are is Act declaredi SEC. % Repealing Clauxe. - All laws, decrees, executive orders, and rules and regulations contrary to or inconsistent with the provisions of this Act are amended, repealed or modifie accordingly.

SEC. 10. Effectivity. - This Act shall take sffect fifteen (15) days after its complete

publication in the Official Gazette or in a newspaper of general circulation. Approved,