Financial literacy: The challenge

KNOWLEDGE is essential in the daily living of man. In association with Financial Management, being knowledgeable is considered as one of the factors affecting financial decisions of an individual. Experts agree that when it comes to financial matters, literacy is always an issue.

There are various studies related to financial literacy with different findings. From my study entitled “Financial challenges of teachers in La Trinidad District: A case study,” I found out that there are financial challenges met by teachers. One, their expenses is greater than their income. Two, they borrow money for their basic needs and Third is being dependent on their salary.

Financial literacy is a serious problem among individuals but is it really being financial illiterate as the main problem or it is self-discipline? Financial literacy and selfdiscipline should come together for knowledge without application is like spending without a plan.

Learning to save for emergency cases will save individuals from borrowing to unscrupulous lenders. Spending more than the income is the attitude that an individual should never do because this is the beginning of digging oneself into the hole of indebtedness. Saving and investing is encouraged but in order to start saving, learn to lessen the debts by cutting expenses, removing unnecessary expenses and creating a budget plan. to a different family class which eliminates discrimination among the rich and the poor. The Identification cards as part of the uniform does not bear additional financial burden to parents because it is being charged to the school MOOE as stated in the DepEd order 45.