By Lee C. Chipongian The Bangko Sentral ng Pilipinas (BSP) has stepped up its financial education program by initiating an ambitious program that brings together all financial leaders and decision-makers from the government and private sector. It began in November 2018 when the BSP held its first ever Financial Education Stakeholders at SMX, Mall of Asia. The objective of this, according to BSP, is to shift into a higher gear the level of financial literacy in the country, for the next generation and the next ones after. The 2018 Expo is the beginning of an annual tradition where the BSP, the Department of Education and key financial education stakeholders can continue to “engage, build connections and pave the way for more productive, impactful partnerships in financial education,” said the BSP. he Expo also supports Republic Act No. 10922, which designates the second week of November as Economic and Financial Literacy Week. The BSP said the Expo is a crucial part of its advocacy to improve financial literacy and financial capability levels of Filipinos. “The BSP believes that Filipinos with ability to manage personal finances, choose and use financial products suitable to their needs, and make wise financial decisions are better allies in ensuring price stability, financial system stability and efficient payments system.” Studies have shown that populations with high financial literacy also have high levels of savings, better debt management and prudent wealth accumulation. “In the Philippines where financial literacy remains low, effective financial education programs are much needed,” said the BSP. Long way to go The central bank knows it will be a long, hard road before every Filipino has enough knowledge to ensure financial empowerment. Financial education is a powerful tool. Last year, the BSP launched the Financial Literacy Program for Schools, another program with the DepEd and a private entity, BDO Foundation. Based on a World Bank survey, only two percent of Filipinos correctly answered seven financial literacy questions. These include basic numeracy, compounding interest computation, comparing prices, and simplified concepts of inflation and investment diversification. The central bank, which has been actively pursuing financial literacy and financial education since 2010, said this study points to substantial gaps in financial education in the Philippines. Still, significant strides have been made. In April this year, the BSP announced that its Knowledge Resource Network (KRN) of libraries have reached a network of 223 libraries nationwide. By the end of this year, the BSP will expand this further to 285 KRNs. “The KRN promotes financial literacy by providing easy access to financial information,” said BSP Governor Benjamin E. Diokno. “Citizens who are able to make informed financial and economic decisions are seen as strong partners in fostering economic development.” The KRN was first launched in 2017 was designed to promote “greater public understanding of BSP policies and activities” and “essential economic and financial concepts” through libraries that offer free information materials such as printed books, reports and brochures published by or for the BSP, as well as online research assistance. This is not the only BSP program in partnership with BDO Foundation, it also has the “PiTaKa” which is a Financial Literacy Program for OFWs or overseas Filipino Workers. The BSP is with the Overseas Workers Welfare Administration (OWWA) with this program. “Dubbed as PiTaKa or ‘Pinansyal na Talino at Kaalaman’, this program aims to equip OFWs with the ability to better manage their remittances, get out of debt, set aside savings or make prudent investments, in preparation for a better life when they return home to the Philippines,” said the BSP. The program also targets OFW families to “sensitize them of the temporary nature of overseas employment, and encourage them to support their loved-ones by spending wisely, saving regularly and looking for ways to augment their family income.”