ELE01 – Basic Financial Literacy

Crisselle Joy V. Ondos

BSED-IV Mathematics
ACTIVITY 1:
Research on the following:
1. What is financial literacy?
- The cognitive knowledge of financial components and abilities such
as budgeting, investing, borrowing, taxation, and personal financial
management is referred to as financial literacy. Being financially
illiterate refers to a lack of such abilities.
2. What are the characteristics of a financially-literate person?
- People who are financially literate are able to use efficient money
management to organize the money they have in order to achieve
future objectives, whatever those goals may be.
3. Is financial education the solution to poor financial decision-making? 
- Although financial literacy is a relatively recent concept, Bernheim, et
al (2001) think that governmental interventions in financial literacy
are not. In the 1950s, the US government began advocating measures
to enhance the quality of personal financial decision-making via
financial education, namely the “inclusion of personal finance,
economics, and other consumer education topics” in K-12 educational
curricula.
4. Based on recent studies, how financial literate are Filipinos?
- Not everyone in the Philippines is financially literate. According to a
BSP survey done in May, just 2% of Filipino individuals are
financially literate. The majority of Filipinos would rather spend than
save. They save based on what is left over from what they receive,
and if there isn't any, they don't have anything to save. As a result of
their lack of financial education, many end up with no savings and
rely on others for financial assistance.

(please properly cite sources of your responses)

https://cleartax.in/g/terms/financial-literacy
https://spottedphilippines.com/importance-financial-literacy-filipinos/