Financial Literacy: Jessie B. Lorenzo

FINANCIAL
LITERACY
JESSIE B. LORENZO
Teacher III
QUESTIONS
How do I prioritize my expenses?
How much should I save up every month?

What do you do if you are running out of cash?
Why do people get paid daily, while others get paid twice a month, or once a month?
WHAT IS FINANCIAL LITERACY?
is the ability to understand and effectively use various financial skills,
including personal financial management, budgeting, and investing.
Financial literacy is the foundation of your relationship with money, and it
is a lifelong journey of learning. The earlier you start, the better off you
will be because education is the key to success when it comes to money.
According to Investopedia, financial literacy is the confluence of
financial, credit and debt management and the knowledge that is necessary
to make financially-responsible decisions or a kind of decisions that are
crucial to our everyday lives which may include budgeting, funding and
investing.
is the ability to read and understand financial information. Being

financially literate is difficult because it entails understanding an enormous
range of topics, but they are extremely important, as this knowledge builds
up over time and can have a huge impact on your life overall.
Mandell (2009) defines financial literacy as “the ability to use knowledge
and skills to manage one’s financial resources effectively for lifetime
financial security.”
Huston (2010) explains that financial literacy is made up of two elements:

understanding and use. Understanding financial literacy implies that a
person is knowledgeable about personal finance, and applies such
knowledge in dealing with one’s finances.
DETERMINANTS OF FINANCIALLY-
LITERATE PERSONS:
1. Plans, saves, invests in stocks, accumulate more wealth (Lusardi and Mitchell, 2014)
2. Less credit card debt
3. When they borrow, they manage their loans better, paying off the full amount each month rather than just
the minimum due.
4. They refinance their mortgages when it makes sense to do so
5. Less likely to use high-cost borrowing methods

FINANCIAL
MATURITY
Refers to understanding how money works in different aspects of our lives:
for example saving vs spending, taxes, or debt. If we take these pieces of
knowledge into account right now, future choices will inevitably lead us
down a more profitable path than if we wait until it’s too late!
WHY IS FINANCIAL
LITERACY IMPORTANT?
5 Reasons Why Financial Literacy Is Important For
Filipinos
1. People are becoming financially-dependent to others.
2. People have no idea of savings and insurance.
3. Most people are highly in debt.
4. Only a few people know how and where to invest their money.
5. Financial Literacy is important to make every Filipino financially-responsible.

WHAT IS FINANCIAL EDUCATION?
It is a way of teaching people, making them financially literate through seminars,
workshops, and other ways and understand the consequences of their bad money
habits.
It is a vital in developing financially literate citizenry, empowering them to make

wise financial decisions, take advantage of economic opportunities, and achieve
financial health. (DO 22, s.2021)
DEPED EXPANDS FINANCIAL
EDUCATION IN K TO 12 TO
IMPROVE LITERACY OF
FILIPINOS
DepEd issues its Financial Education policy under DO No. 22, s. 2021 to
improve the financial literacy and capability of its learners, teachers and
personnel by integrating financial concepts in the learning areas and
providing professional development opportunities.
DEPED ORDER 22, S.2021
FINANCIAL EDUCATION POLICY
Scope and Coverage:
The Financial Education Policy covers all learners from all public and private elementary, junior and senior high
schools, learning centers for Special Education (SPEd) and ALS, IPEd and Madrasah Education Program.
This shall guide the teachers (both from public and private)on the process of intensified integration of financial
educationin various discipline across grade levels (K to 12)
This will bridge the necessity for teachers and personnel to be better equipped in financial literacy through
reinforcement of existing measures such as the Teacher Induction Program (TIP) and partnership programs with
BSP, Financial Empowerment Seminars, Financial Education Expo, and Financial Literacy Program in School.
The Policy Aims to:
For Learners
1. Help them understand the value of money and resources with integrity and honesty through undertaking
examinations pertinent to financial scenarios; and
2. Develop their knowledge and capability to apply Financial Education Concepts and Core Messages in practical
situations through simulated real-life financial settings.
For Teachers and School
Heads
1. Guide them in integrationg Financial Education Concepts and Core Messages in appropriate Learning
Competencies in various learning areas across all grade levels based on identified and approved entry points in the
K to 12 BEC.
2. Capacitate them in Financial Education through the provision of resource materials and capability building
opportunities to enable them to effectively facilitate the integration of Financial Education Concepts and Core
Messages in the conduct and delivery of lessons and classes: and
3. Produce financially literate and debt-free teaching force

BENEFITS OF FINANCIAL
LITERACY
Financial literacy involves being able to manage personal finances
efficiently and make appropriate, educated decisions about your personal
finance. Some of the primary benefits of financial literacy include:
1. Developing better spending habits
2. Learning the value of a savings account
3. Being able to communicate more effectively about finances
4. Making better financial decisions

HOW TO BE MORE
FINANCIALLY LITERATE?
1. Learn about money matters
2. Use financial management tools
3. Ask for advice
4. Use your network
5. Learn to budget
6. Understand credit
7. Create and manage a checking and savings account
8. Understand debt and loans
9. Invest in retirement
10. Understand the risk of identity theft

THANK YOU
AND
MABUHAY
PWES FAMILY!!!

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What are the determinants of a financially literate person?

What are the determinants of a financially literate person?

What are the benefits of financial literacy?

What are the benefits of financial literacy?

FINANCIAL

How much should I save up every month?

is the ability to read and understand financial information. Being

Huston (2010) explains that financial literacy is made up of two elements:

2. Less credit card debt

4. They refinance their mortgages when it makes sense to do so

5. Less likely to use high-cost borrowing methods

3. Most people are highly in debt.

5. Financial Literacy is important to make every Filipino financially-responsible.

It is a vital in developing financially literate citizenry, empowering them to make

3. Produce financially literate and debt-free teaching force

2. Learning the value of a savings account

3. Being able to communicate more effectively about finances

4. Making better financial decisions

2. Use financial management tools

3. Ask for advice

4. Use your network

7. Create and manage a checking and savings account

8. Understand debt and loans

10. Understand the risk of identity theft

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