FINANCIAL LITERACY. Bangko Sentral ng Pilipinas Deputy Governor Bernadette Romulo-Puyat delivers her speech at the BPI Financial Wellness Fair at Glorietta 2 in Makati City on Thursday (July 20, 2023). The fair is in conjunction with BPI Foundation's 45th anniversary. (PNA photo by Kris M. Crismundo)
MANILA – The Bangko Sentral ng Pilipinas (BSP) has vowed to bridge financial literacy gap among Filipinos by educating them on the importance of being “financially healthy”.
During the celebration of the 45th anniversary of BPI (Bank of the Philippine Islands) Foundation, BSP Deputy Governor Bernadette Romulo-Puyat underscored the crucial role of financial education in building a sustainable and equitable financial system.
Romulo-Puyat said that through financial education, Filipinos will be empowered to be financially healthy —one who can meet the financial needs and obligations, absorb financial shocks, reach financial goals, and achieve financial control and security.
“These empowerment traits are the hallmarks of (a) financially healthy system,” she said during the event in Makati City on Thursday.
However, the Philippines is in the bottom 30 out of 144 countries in terms of financial literacy according to a global study, while a BSP survey showed that only 1 percent of surveyed Filipino adults correctly answered questions on financial literacy.
“Considering these gaps, how can we further promote financial health? The answer lies in financial education. Financial education is a systematic process of acquiring financial literacy that enables individuals to optimize financial services and better manage their financial values. Financial education forms part of the BSP’s broader objective of building an inclusive financial system towards sustainable and equitable national development,” the central bank executive added.
Romulo-Puyat cited BSP’s initiatives to bridge financial literacy gap among Filipinos.
First, by collaborating with industry partners like BPI Foundation in equipping Filipinos with a strong foundation in personal finance, it enables them to make informed financial decisions, and utilize a wide range of financial services effectively.
This helps individuals to manage debt, build reserves, and prudently plan for their financial futures.
Second, the BSP partners with the public and private sector in producing and distributing learning modules for educators and learners that will be used in regular training programs of over 800,000 teaching and non-teaching personnel.
The BSP also tied up with BPI Foundation in developing personal finance course modules for college students.
Third, it conducts seminars for teachers to provide them essential financial knowledge in teaching education financial literacy among students.
The BSP-BPI Personal Financial Management seminars have already reached 5,000 teachers in Metro Manila.
Lastly, the BSP has developed a future-oriented approach by launching Personal Finance 101, a course module designed to develop the financial decision-making skills of college students before they join the workforce.
Private sector’s support
BPI chief executive officer Jose Teodoro Limcaoco told reporters on the sidelines of the event that the entire banking industry is supportive of the government’s push for financial literacy.
“The new (BSP) Governor (Eli Remolona Jr.) continues on that track and tries to get more people into the banking system, to make payments more digital because it allows more people into the banking system. The whole industry is supportive of that, and I think we will continue to work with BSP to bring more people in(to) the financial system,” Limcaoco added. (PNA)
