March 27, 2026 l The Manila Times
Financial literacy is often seen as a social good, an educational effort that provides individuals the tools to manage their personal finances.
While true, it also downplays its broader significance. The Financial Executives Institute of the Philippines (FINEX) considers financial literacy a priority for advocacy because it plays a fundamental role in economic policy.
At its core, an economy is the sum of many individual financial choices. How households and businesses save, borrow, invest and spend ultimately influences the country’s financial standing — from capital formation and market stability to resilience during economic downturns.
When financial literacy is low, monetary choices tend to be short term, reactive and susceptible to misinformation. When it is strong, it becomes intentional, forward-thinking and aligned with long-term growth.
The Philippines today is at a pivotal moment. Access to financial products has grown fast, fueled by digital banking, e-wallets and online investment platforms. Digital payments now account for nearly 60 percent of retail transactions.
However, access has outstripped understanding. Studies reveal that only a small percentage of Filipinos can correctly answer basic financial literacy questions, highlighting a knowledge gap. Although financial inclusion has improved, a large part of the population remains outside the formal financial system, and many who are included still lack the skills to fully benefit from it.
This challenge is compounded by a more basic truth: many Filipinos are already economically vulnerable. A large portion of households have little savings and are highly susceptible to changes in food prices, fuel costs and income levels.
In this context, limited financial literacy not only limits opportunities but also increases vulnerability to problems. Poor financial choices, whether in borrowing, spending or investing, can quickly lead to long-term financial difficulties, widening inequality and reducing resilience at the household and national levels.
This gap carries real economic consequences. Households with limited financial literacy are more exposed to shocks, have insufficient savings and are more likely to incur unsustainable debt.
Retail investors may gravitate toward speculative opportunities, contributing to market volatility. The persistence of financial scams and misinformation further erodes trust in the financial system.
Addressing the challenge
Encouragingly, there are efforts in the private and nonprofit sectors to address this challenge. The volunteer-driven Social Involvement Committee (SIC) of the FINEX Research and Development Foundation actively promotes financial literacy through partnerships and delivers programs that equip Filipinos with practical knowledge of savings, bookkeeping, budgeting and responsible investing.
SIC has developed modules and more than 25 case studies of real-life examples that they share with participants, while all lessons are taught in Filipino and regional languages.
Complementing these efforts is Project RISE, a collaborative initiative led by SharePHIL, the Finex Foundation and the Capital Market Development Foundation. It seeks to expand investor education and promote broader participation in the capital markets. These initiatives show how sustained, multi-stakeholder engagement can improve financial skills.
However, these efforts must be scaled and institutionalized. Financial literacy should not depend solely on voluntary programs or isolated interventions. It must be embedded into the national education system as a core life skill.
Integrating financial education into the K–12 curriculum will ensure that future generations are better equipped to navigate an increasingly complex financial landscape. This requires strong collaboration between government, educators and the private sector.
Initiatives by the Department of Education, the Bangko Sentral ng Pilipinas, the Securities and Exchange Commission, and other stakeholders to incorporate financial literacy into formal education deserve full support.
FINEX, with its network of finance professionals and its commitment to nation-building, is well-positioned to contribute meaningfully to this effort, both in shaping content and in mobilizing resources.
A more financially literate population supports higher savings, more responsible borrowing and more informed participation in financial markets. In a country where many are financially vulnerable, financial literacy is a vital first line of defense for households and the economy.
***The views expressed herein are his own and do not necessarily reflect the opinion of his office as well as FINEX. For comments, email eaquahiansen@phinma.com.ph. Photo is from Pinterest.