Ramping Up Towards Philippines 2040 54TH ANNUAL MEETING Philippine Economic Society 08 November 2016 | Novotel Hotel

Mastercard Asia Pacific Financial Literacy Index PHILIPPINES Score: 62 11th PH ranked 11th out of 17 Asia Pacific countries Topics covered: Basic money management Financial planning Investment 1st place is Singapore 2nd place is Taiwan 3rd place is New Zealand Source: Mastercard (2015)

Standard & Poor’s Rating Services Global Financial Literacy Survey PHILIPPINES 114th 25.0% PH ranked 114th out of 148 countries Only 25% adults answers correctly Topics covered: Debt Risk diversification Inflation Savings Source: Standard & Poor’s (2015)

Never experienced saving money Used to Save but has stopped saving Savings Pattern of Filipino Adults Never experienced saving money 25% 43% Currently has Savings Used to Save but has stopped saving 32% 57% are not saving at all Source: BSP National Baseline Survey on Financial Inclusion (2015)

Informal Savings Group 0.8% Non-stock Savings and Where Savings Are Kept Informal Savings Group 2.6% 0.8% Non-stock Savings and Loan Association Cooperatives 7.5% 32.7% Banks 68.3% Home Source: BSP National Survey on Financial Inclusion (2015)

Currently borrows money Used to but do not borrow anymore Borrowing Patterns Of Filipino Adults Do not borrow at all 19% Currently borrows money 47% 34% Used to but do not borrow anymore 53% do not borrow at all Source: BSP National Survey on Financial Inclusion (2015)

Family, Relatives, or Friends Sources Of Borrowing Informal Lenders Banks 9% 4% Lending/ Finance Companies 10% Family, Relatives, or Friends 54% Cooperatives 9% 9% 63% borrow from informal lenders Microfinance NGOs 5% Government Entities Source: BSP National Survey on Financial Inclusion (2015)

Percentage of OFWs With And Without Savings From Cash Remittances Source: Philippine Statistics Authority (2015)

Percentage of OFWs With Allocation To Different Expenditure Groups 46.5% to debt payments is about $11.625b or P523b Pesos 6.5% to investments is about $1.625b or P40b Pesos Source: BSP Consumer Expectations Survey 1st Quarter (2016)

YOUTH ENTREPRENEURSHIP ACT RA 10679 YOUTH ENTREPRENEURSHIP ACT

It is the policy of this law to establish, maintain, and support a complete, adequate, and integrated system of education and training to encourage the entrepreneurial spirit among our youth.

LITERACY PROGRAM YOUTH AND FINANCIAL It is the program of the State that mandates the inclusion of entrepreneurship and financial literacy program in all levels of education nationwide.

financial literacy program The Challenge: Grassroots level financial literacy program

Grassroots level financial literacy program The Challenge: Grassroots level financial literacy program

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