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FINANCIAL LITERACY FOR TEACHERS

It is alarming to know that public schools in the Philippines have been plagued by borrowings over the past decades. Most notable was in 2016 when more than 26,000 teachers failed to avail of their retirement benefits due to unpaid loans.

Why are teachers drowning in debt? Are their salary delays the primary cause? Many teachers claim their compensation is too low. They even have to spend for classroom equipments and supplies such as laptop, paper, and chalk. Is their take-home pay really not enough so they are forced to borrow? Also, do we partly blame the private and lending institutions for getting easy access to a system that conveniently pays them through payroll deductions?

Whatever the reasons are, loans have continued to be a go-to-solution amongst teachers. But, it has to stop and be addressed with urgency. How do we change the mindset and behavior of teachers about borrowing money?  Since they are mandated to teach financial literacy, can they be a reliable and potent source of financial information? Can they really be effective in teaching this to their students when they themselves have difficulty managing their personal finances?

There could probably be many factors driving public school teachers to borrow. For now, we could initially teach them financial literacy. “This is what financial literacy is all about. It’s finding solutions to challenges that we face. It’s finding solutions to reaching the goals that you want to reach, what you want to be, and what you want to do with (for) the rest of your lives,” said Secretary Leonor Briones of DepED.

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FINANCIAL LITERACY LAWS

R.A. 10679. An Act Promoting Financial Literacy Among Youth.

“Section 4. Youth Entrepreneurship and Financial Literacy Program. – The promotion of youth entrepreneurship and financial literacy program shall be included in all levels of education nationwide. Consistent with Section 5 of R.A. 10533, or the “Enhanced Basic Education Act of 2013, the Department of Education (DepEd) shall ensure that the K to 12 curriculum shall be supported by programs on entrepreneurship and financial literacy: Provided, that at the elementary level, the programs shall principally focus on the ideal values necessary to become successful entrepreneurs.”

R.A. 10922. Economic and Financial Literacy Act. This law declares every second week of November as Economic and Financial Literacy Week.

“Section 4. To improve the economic and financial literacy of students and the youth, all public and private elementary and secondary schools under the DepEd, the state and private colleges and universities under the CHED, the Technical Education and Skills Development Authority (TESDA), and the NYC. In coordination with the NEDA, are hereby mandated to conduct consciousness-raising and knowledge-expanding activities on economic and financial literacy including the setting up of literature corners, organizing fora, trainings, and conducting basic economic and financial management classes.”

FINANCIAL LITERACY FOR ALL

It is high time that we start working seriously to uphold this cause by supporting the Department of Education’s call to promote financial literacy. We pray and hope that our teachers can be rescued from their indebtedness through DepEd’s implementation of institutional reforms. As Filipino citizens, we can instill in us, starting in our own family, the value of saving and financial planning.

Author:

Divina Gracia M. Cabaddu, is a part-time College Professor and a Resource Speaker of the Department of Trade and Industry (DTI) – Philippine Trade & Training Center. Her primary advocacy is Financial Literacy, and she has been doing it for over six years now. She had visited numerous public and private schools, colleges, and universities, companies and local governments including the Department of Immigration, PNP Camp Crame, University of Sto. Tomas, etc. to impart her expertise on financial management. For inquiries or request for seminars, you may message her at 0933.863.7865.