Financial Literacy: An Aid to Educate Filipino Youth in Proper Money Handling

A Research Paper Presented to the Class of Professor Vanessa Moya, Faculty of Co Arts, !nstitute of Arts and "ciences, Far Eastern #ni$ersity

!n Partial Fulfill ent of the course Co

unication Arts % & Research in Various

'isciplines for (st "e ester, %)(*

"u+ itted ,y: Ladines, Princess FLayague, 'ennise AMis anos, "hiela Mae #Villafranca, Yr$ie "as.ia R/alath, Aileen A-

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CHAP0ER !PR1,LEM A2' !0" "E00!23"

A- !20R1'#C0!12

Financial literacy is defined as having the ability to create and take effective judgments and decisions regarding the use and management of money. It can be described as being knowledgeable, educated, and informed about managing money and assets, banking, investments, credit, insurance, and taxes. Moreover, being able to understand the basic concepts underlying the management of money and assets, such as the time value of money in investments and the pooling of risks in insurance explained financial literacy as well. And lastly, being able to use the knowledge and understanding obtained through financial education to plan and implement financial decisions. !ogarth, "##$%

Almost all Filipino children do know what money is but still do not understand the key concepts behind it such as earning, saving and spending, and the impacts that these will have on their lives. &hat is the reason the youth of today are not that knowledgeable when it comes to personal finance. &here are no existing lessons that will help them to prepare in the modern financial world. As a result, there are tendencies that some of them may begin to be financially'deprived that when they get their money, they spent it extravagantly. (ith this, most of these kids grow into adults with poor saving skills and debt problems.
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)aving these children from financial crisis, a lot of different groups and*or organi+ations, organi+ed a financial literacy campaign to end this havoc. It has been reported that ,epartment of -ducation pushed financial literacy in both primary and secondary level. &opics like saving and entrepreneurship are taught to .rade school students, while /asics of )tock -xchange and 0apital Markets are being taught to !igh )chool students. Another financial literacy campaign, 10ha'0hing2 was launched last "#33 by 4rudential 0orporation Asia that is specially designed for children. It is composed of a series of animated musical cartoons which is focused on money matters.

Although there are different programs that might help the youth to be financially literate, those are useless if aren5t applied. &hus, the active participation of the parents are important. 4arents or guardians as the first teachers should be critical enough in selecting between what and what not to teach. &hey must be role models to the children as they immediately imitate what they see and hear from people they look up to. -ngaging the children also in different financial activities will help as well. )haring them the different reading materials, newsletters, and*or maga+ines that are related in managing money will produce a result too. Additionally, they must teach the children how valuable money is. 0hildren usually see money as a medium of exchange for something they want to buy, but they have to be guided that it5s not always permissible to have this object be an exchanged for everything. 6et the little minds be educated with vital things like financial nourishment towards responsible and more mature individuals. It is in the value of the parent5s good teaching that makes them remarkably e7uipped as

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they grow. (hat parents have taught and will teach can greatly affect the children of who and what they are to become in the future.

&he main concern of this paper is to have a better understanding about the importance, and status of the Financial 6iteracy here in the 4hilippines. It also aims to know and review how it will be taught to the Filipino youth, the benefits they will obtain upon gaining knowledge on the said topic, and how they will apply those information on their lives to reach success.

,- ,AC43R1#2' 1F 0HE "0#'Y 6earning how to manage money is an important life skill, especially to the youth of today. It is better to instill and educate them while they are still young as they will be the ones who will be in charge of our country soon and will be one of its benefactor to its growth and development. For this reason, the main target of this research paper is the Filipino youth from ages 8'39 years old.

&his study about Financial 6iteracy as an aid for proper money handling to Filipino youth, aims to address this gap in knowledge about personal finance, and how instill knowledge in finance can affect young Filipinos positively. :ne apprehension of this research is to help the youth to be financially ready in this fast facing modern world where proper handling of money is a re7uirement to one5s success.

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-ven without taking lessons of finance and economics, this paper presume that youth can be wise enough in their own personal money with the help of their parents as their guides and the different programs specially created for their benefit. It is intended in this study to motivate and civili+e the unawareness of the Filipino youth in financial literacy. /eing financially knowledgeable is a must in a secured future, especially for the youth which will soon to be young adults and future of the nation. It is a know'how study, to open up the sensibility and intelligence of the youth regarding significance of being financially literate.

&he teaching techni7ues used in educating the Filipino youth about proper money handling is being reviewed as well as the possible applications of those information on their lives.

It is for this purposes that the researcher chooses this topic for study to come up how effective financial literacy as an aid in proper money handling for the Filipino youth.

C- "0A0EME20 1F 0HE PR1,LEM" &he primary purpose of this study is to know how effective financial literacy as an aid to educate Filipino youth in proper money handling. )pecifically, this study attempts to answer the following 7uestions; (hat is the importance of being financially literate< (hy is it important to teach Filipino youth about financial literacy<

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!ow is financial literacy taught to Filipino youth and how it will help them towards success<

'- "!32!F!CA2CE 1F 0HE "0#'Y &his section shows how the study on the effectiveness financial literacy as an aid to educate the youth in in proper money handling will benefit the following;

Filipino Youth. &his study would be able to help the Filipino youth know the importance and benefits they will obtain upon knowing effective money management.

Professors- 4rofessors would benefit from this study as they would be able to gain more knowledge about money management that may be beneficial in the future.

Parents. =nowledge of the study would help parents know the importance of their role as the first teacher on teaching effective money management, and the benefits that their children will obtain. Information provided here will help parents to be more knowledgeable in this topic.

Future Researchers- .iving emphasis on the how financial literacy will help the Filipino youth in proper money handling, these could give the future researchers a great idea that they could also conduct similar studies with.

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E- "C1PE A2' L!M!0A0!12

&his study reviewed how effective financial literacy as an aid to educate Filipino youth in proper money handling.

&o review the how effectively financial literacy is, the researchers will only base its research on the importance, teaching techni7ues, benefits, and the possible applications of it. &his study is intended to Filipino youth ages 8'39 years old.

F- 'EF!2!0!12 1F 0ERM"

(- Financial literacy' the ability to make informed judgments and to take effective decisions regarding the use and management of money

%- Financially5depri$ed' lack of financial means

*- Assets' items of ownership convertible into cash> total resources of a person or business, as cash, notes and accounts receivable, securities, inventories, goodwill, fixtures, machinery, or real estate

6- ,an.ing5 the business carried on by a bank or a banker.

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7- !n$est ents5 the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.

8- 0i e $alue of

oney' he time value of money is the value of money with a

given amount of interest earned or inflation accrued over a given amount of time

9- Pooling of ris.s insurance'

risk pooling% method by which insurance

companies control the risk of insuring against catastrophic events or extending insurance to individuals or businesses likely to create si+able claims.

:- 0a;es' An involuntary fee levied on corporations or individuals that is enforced by a level of government in order to finance government activities.

9. !nsurance' A contract policy% in which an individual or entity receives financial

protection or reimbursement against losses from an insurance company.

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