FINANCIAL LITERACY The Experience of the Bangko Sentral
FINANCIAL LITERACY: The Experience of the Bangko Sentral ng Pilipinas RBI-OECD Workshop on Financial Literacy: Challenges, Strategies and Instruments Bangalore, India 22 March 2010
Outline of the Presentation Present state of financial literacy n Advocacies and programs n The different players n Challenges ahead n
Where are we now? As much as 53% of Filipinos feel that they have “average” or “poor” overall level of understanding about money management and personal finances n Filipinos are generally pragmatic and appreciate the value of saving, but only 36% save regularly n On average, Filipinos say that their current savings would only last 9 weeks n Source: Citi Fin-Q Survey, 11 Nation Comparison, September 2008
Where are we now? Only a third make a monthly budget and stick to it n Only 40% are able to pay off the entire outstanding balance of their credit cards every month n Financial protection and independence are dire needs that are set aside n Source: Citi Fin-Q Survey, 11 Nation Comparison, September 2008
What are we doing?
School children n Integration of lessons in school curriculum ¨ Lessons on money ¨ Money management ¨ Basic economics related to savings n Targets elementary school children ¨ 12 million in public schools ¨ 1. 5 million in private schools
Students in Colleges and Universities n Exploratory talks to include financial planning as a 3 -unit undergraduate subject n Financial education expo ¨ Philippine financial system ¨ Wise money management ¨ Make money work for you ¨ Financial Planning for life-cycle events n Credit card awareness sessions
Working Sector n Financial education and consumer protection sessions n Financial education campaigns for Overseas Filipinos and their families n Public information campaigns on concepts and issues on the economy and BSP’s role in economic development
Marginalized Sector n Clients – lectures and basic trainings about microfinance services, requirements and procedures, and microentrepreneurship n Stakeholders - enhance awareness on microfinance and increase their skills, capacity, understanding and appreciation of microfinance operations
Other Initiatives and Collaborations n n n Website: Materials and Consumer Portal Be a Wise Saver Campaign Out-of school youths Savings consciousness and banking stability in high schools Financial Sector Forum - Consumer Protection and Education Committee Microfinance Literacy Program
BSP Departments/Offices Involved n Financial Consumer Affairs Group ¨ n Department of Economic Statistics ¨ n Undertakes various initiatives to deliver financial education to consumers Conducts public information campaigns for Overseas Filipinos and their families Economic and Financial Learning Center ¨ Focal source of relevant information concerning economic and financial matters
Other Public Sector Agencies Department of Education n Commission on Higher Education n Financial Sector Forum n Consumer. Net n Philippine Microfinance Committee n
Private Sector Coordinating Council of Private Educators Association n Associations of various financial institutions n Chamber of commerce, industry and professional associations n
Challenges Ahead n Integration of Financial Education Activities ¨ Internal ¨ National Survey n National Education Masterplan n Evaluation n
www. bsp. gov. ph Trunk Line: (632) 524 -7011 FCAG: (632) 523 -3631 EFLC: (632) 524 -6781
- Slides: 15