Personal Financial Literacy in Technical-vocational Education and Training Act

Senate Offer of the secretarp TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 26 MAY -5 P 3:45 First Regular Session SENATE RECEIVED BY: S. No. _ 2106 Introduced by Senator Loren Legarda AN ACT MANDATING THE INCLUSION OF A PERSONAL FINANCIAL LITERACY COURSE IN THE TECHNICAL-VOCATIONAL EDUCATION AND TRAINING CURRICULUM OF TECHNICAL-VOCATIONAL INSTITUTIONS AND TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY TRAINING CENTERS EXPLANATORY NOTE Financial literacy is a fundamental life skill. The ability to manage personal resources, avoid financial fraud, use credit responsibly, and plan for savings and retirement directly determines the economic security of individuals and the financial health of the nation. Yet, despite its importance, financial literacy remains alarmingly low in the Philippines. According to a global study by Standard & Poor's, the Philippines ranked among the bottom 30 of 144 countries in financial literacy. The 2021 Bangko Sentral ng Pilipinas (BSP) Financial Inclusion Survey revealed that only 2% of adults correctly answered all six basic financial literacy questions,' while a 2022 World Bank study found that just 25% of adult Filipinos are familiar with basic financial concepts.? These gaps are particularly consequential for technical-vocational learners, who often transition into paid work earlier than their peers in higher education and must immediately navigate wages, expenses, and savings. The legal foundation for financial education already exists. Republic Act No. ' Bangko Sentral ng Pilipinas. Financial Inclusion Dashboard. https://www.bsp.gov.ph/Media_And_Research/Financial%20Inclusion%20Dashboard/2023/FIDashboard_1Q2023.pdf 2 Financial Literacy Around the World: Insights from the Standard & Poor's rating services global financial literacy survey. https://gflec.org/wp-content/uploads/2015/11/Finlit_paper_16_F2_singles.pdf

10922, the Economic and Financial Literacy Act, mandates the State to promote financial literacy and designates the Technical Education and Skills Development Authority (TESDA), among other agencies, to conduct financial literacy training and awareness activities. In practice, however, existing initiatives, including TESDA's online financial literacy modules developed in partnership with the BSP and the Banco de Oro Foundation, 3 remain optional and non-systemic. This bill addresses that gap by mandating the inclusion of a Personal Financial Literacy Course (PFLC) as a required component of the TVET curriculum in all public and private technical-vocational institutions (TVIs) and TESDA training centers. A passing grade in the PFLC shall be a prerequisite for program completion. The PFLC shall be developed jointly by TESDA, the BSP, the Department of Finance (DOF), the Securities and Exchange Commission (SEC), and the Insurance Commission (IC), which shall constitute an Inter-Agency Committee (IAC) for this purpose. The IAC shall be responsible for establishing and periodically updating the course's minimum content standards, which shall cover personal finance fundamentals, debt management, savings and emergency fund planning, investment and retirement planning, insurance, credit scoring, consumer behavior, and the responsible use of digital financial services, including cyber-hygiene and consumer protection in the digital economy. By institutionalizing financial education within TVET, this measure ensures that technical-vocational students graduate with the financial knowledge and discipline needed to manage their incomes wisely, avoid financial fraud, use credit responsibly, and plan for long-term security. In view of the foregoing, the passage of this measure is earnestly sought. LOREN LEGARDA 3 Philippine Information Agency. TESDA Online Program introduces new financial literacy courses to teach investing and fraud protection. October 17, 2025. https://pia.gov.ph/press-release/tesda-online-program-introduces-new-financial-literacy-courses- to-teach-investing-and-fraud-protection/

Senate Difice of the Secretary TWENTIETH CONGRESS OF THE REPUBLIC OF THE PHILIPPINES ) 26 MAY -5 P3:45 First Regular Session SENATE RECEIVED BY: S. No. _ 2106 Introduced by Senator Loren Legarda AN ACT MANDATING THE INCLUSION OF A PERSONAL FINANCIAL LITERACY COURSE IN THE TECHNICAL-VOCATIONAL EDUCATION AND TRAINING CURRICULUM OF 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 the Congress assembled:

Section 1. Short Title. - This Act shall be known as the "Personal Financial

2 Literacy in Technical-Vocational Education and Training Act".

Sec. 2. Declaration of Policy. - It is the policy of the State to promote financial

4 literacy as an essential life skill for all citizens, and to strengthen the technical- 5 vocational education and training system as a vehicle for developing not only practical 6 occupational skills but also the financial knowledge and discipline necessary for 7 economic security and well-being. In furtherance of this policy, the State shall institutionalize financial education 9 within the TVET curriculum, ensuring that technical-vocational students are equipped to make sound and well-informed financial decisions upon entering the workforce, to responsibly manage personal finances, and to participate meaningfully in the formal financial system.

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

(a) To ensure that all technical-vocational institutions (TVIs) and Technical Education and Skills Development Authority (TESDA) training centers shall

provide a structured and standards-based financial education program as part of the Technical and Vocational Education and Training (TVET) curriculum; (b) To equip technical-vocational learners with knowledge and competencies on personal financial management, including budgeting, saving, debt management, investment, insurance, and retirement planning, to enable them to make sound financial decisions upon entering the workforce; (c) To promote awareness of consumer rights and protections, particularly in relation to digital financial services, and to develop responsible financial behavior among learners; and (d) To align financial education within TVET with national financial inclusion objectives and standards established by the relevant oversight agencies.

Sec. 4. Mandatory Inclusion of Personal Financial Literacy Course in the TVET

Curriculum. - All public and private TVIs and TESDA training centers shall include the Personal Financial Literacy Course (PFLC) as a mandatory component of the TVET curriculum. The PFLC shall be offered to all enrolled technical-vocational students and trainees, regardless of the specific program or qualification they are pursuing. A passing grade in the PFLC shall be a prerequisite for completion of any TVET program. The PFLC shall focus exclusively on personal finance and financial literacy. It shall be offered as a stand-alone course, separate from other technical-vocational competency units, with its own curriculum, instructional materials, and assessment standards developed in accordance with Section 5 of this Act.

Sec. 5. Minimum Content Standards of the Personal Financial Literacy Course.

- The PFLC shall, at minimum, provide instruction on the following topics: (a) Fundamentals of personal finance, including budgeting, income management, and financial goal-setting; (b) Time value of money and its practical applications in everyday financial decision-making; (c) Consumer behavior in the Philippine economic and cultural context; (d) Debt management, including responsible borrowing, loan repayment strategies, and debt rehabilitation; (e) Savings strategies, emergency fund planning, and financial resilience;

(f) Basic investment concepts and financial planning; (g) Retirement planning, including relevant government-mandated social protection programs such as those administered by the Social Security System (SSS), the Government Service Insurance System (GSIS), and Pag-IBIG; (h) Insurance planning and risk management; (i) Credit scoring, credit reports, and the responsible use of credit; (i) Overview of the Philippine financial system and the roles of key regulatory and oversight agencies; (k) Responsible use of digital financial services, including mobile banking, electronic payments, and digital wallets; and (1) Cyber-hygiene, cybersecurity awareness, and consumer protection in digital financial transactions. The inter-agency committee established under Section 6 hereof may update, revise, or supplement the minimum content standards prescribed in this Section in accordance with emerging financial products, technologies, and national financial inclusion priorities, subject to the requirements of the implementing rules and regulations.

Sec. 6. Inter-Agency Development and Oversight. - TESDA shall lead the

development, review, and updating of the PFLC curriculum, instructional materials, and assessment standards. In discharging this mandate, TESDA shall collaborate with the following agencies, which shall serve as co-developing and advisory bodies: (a) The Bangko Sentral ng Pilipinas (BSP), for matters relating to the monetary system, financial inclusion, digital payments, and consumer protection in the financial sector; (b) The Department of Finance (DOF), for matters relating to public finance, fiscal policy, and government financial programs; (c) The Securities and Exchange Commission (SEC), for matters relating to capital markets, investment, and corporate governance; and (d) The Insurance Commission (IC), for matters relating to insurance products, risk management, and insurance regulation.

The aforementioned agencies shall constitute an Inter-Agency Committee (IAC) 2 that shall jointly formulate, review, and update the minimum content standards and instructional guidelines for the PFLC. The IAC shall meet regularly, and at least once 4 every three (3) years, to assess and revise the PFLC content standards in response to 5 developments in financial products, services, and national financial literacy priorities. TESDA shall serve as the lead convenor of the IAC and shall provide the 7 secretariat support. The IAC shall adopt its own rules of procedure within sixty (60) days from its constitution.

Sec. 7. Qualifications and Development of PFLC Instructors. - TESDA, in

consultation with the IAC, shall establish minimum qualifications and competency standards for instructors assigned to deliver the PFLC. TVIs shall ensure that PFLC instructors meet these standards prior to being assigned to teach the course. TESDA shall develop and make available continuing professional development programs for PFLC instructors to ensure the currency of their knowledge and pedagogical competencies, consistent with updates to the PFLC content standards.

Sec. 8. Implementing Rules and Regulations. - Within ninety (90) days after

the effectivity of this Act, the TESDA shall, in consultation with the BSP, DOF, SEC, IC, and other relevant stakeholders, promulgate the Implementing Rules and Regulations (IRR) necessary to carry out the provisions of this Act.

Sec. 9. Separability Clause. - If any portion or provision of this Act is declared

unconstitutional, the remainder of this Act or any provisions not affected thereby shall remain in force and effect.

Sec. 10. Repealing Clause. - Any law, presidential decree or issuance, executive

order, letter of instruction, rule or regulation inconsistent with the provisions of this Act is hereby repealed or modified accordingly.

Sec. 11. Effectivity. - This Act shall take effect after fifteen (15) days following

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