National Financial Literacy Program
Regional Training of Trainers on Financial Literacy
November 20-23, 2007
Regions XII and ARMM

Program Overview

The Philippine Government through the National Anti-Poverty Commission (NAPC) and the National Credit Council (NCC), with support from the Asian Development Bank (ADB) and in partnership with the major stakeholders in the microfinance industry have bonded together to undertake the development of the National Financial Literacy Program (NFLP). is the ability of an individual to understand financial terms and concepts and to translate that knowledge skillfully into behavior. Based on this definition, the NFLP would would thus involve a series of capacity building activities focused at increasing the poor's knowledge of financial concepts, skills and attitudes and to translate this knowledge into behaviors that results in good financial outcomes both for the providers and users of microfinance services.

The NFLP is deemed as a timely and needed intervention to assist the existing microfinance clients, potential clients, the various providers of microfinance services as well as other interested organizations, both government and private, in providing support to the growing needs of the microfinance/microenterprise sector. As the level of financial literacy increases in the country, this will positively impact both individuals or households and financial institutions. On an individual or household level, low knowledge of financial concepts can result to poor decisions that affect economic well-being, i.e., more susceptible to debt trap, low savings, and greater vulnerability to overzealous credit providers or fraudulent schemes. At the financial institutions level (both formal and informal), potential or current clients with low financial literacy may lead to the choice of inappropriate products that can adversely affect the institutions, e.g., non-repayment of loans leading to high portfolio-at-risks, lower sustainability, negative image, etc.

Training Objectives

Opportunities exist for microfinance institutions, local government units, educational institutions, community-based organizations and private sector entities to become partners in the delivery of financial literacy training to transfer knowledge on financial skills and management to the poor. It is the main intent of the Regional Training of Trainers (TOTs) on Financial Literacy to pool and develop a critical mass of trainers who can assist various stakeholders in the conduct of financial literacy training to the poor, most specifically the users of microfinance services.

Seven modules on various topics concerning financial literacy as well as teaching guides for institutions/individuals who will bring financial education down to the level of clients were developed to be used during the TOTs. They are the following:

1. Overview of Microfinance
2. Budgeting and Planning
3. Roles and Responsibilities of Clients in the Use of Credit
4. Asset Building Program
5. Consumer Protection
6. Improving your Business
7. Adult Learning Techniques with Gender Perspective

After the training, participants will have the capacity to deliver financial literacy training that would improve and increase the poor’s knowledge and understanding on the following:

• Microfinance industry, including basic micro financial services and asset-building programs offered by microfinance institutions at their respective locations
• Clients’ responsibility and rights in dealing with microfinance institutions and accessing microfinance services
• Financial skills for personal/household and entrepreneurial management.

Selection Criteria

In order to establish the critical mass of trainers, the following set of criteria will be used to guide the selection of twenty-five organizations who will undergo the Regional Training of Trainers on Financial Literacy in General Santos City on November 20-23, 2007:

1. Outreach capacity
2. Training capacity
3. Plans to Disseminate Financial Literacy Training
4. Presence in Priority Areas

The pool of trainers is expected to come from the MFIs, academic institutions, training institutions, other civil society organizations involved in training and capacity building activities, basic sectors, national government agencies, and local government units.

Institutional Arrangements

Selected institutions will be provided the following benefits at no cost:

• Training-of-Trainers on Financial Literacy for 3 days
• Financial literacy training modules and TOT Guides
• Hotel accommodation, meals and snacks for the duration of the TOT

However, transportation expenses of participants in going to and from the training venue will be shouldered by their respective institutions.

After the conduct of the TOT, participants are expected to submit an Action Plan for Financial Literacy duly approved by the heads of their organizations. The action plan will be the basis for NAPC’s monitoring of participating institutions’ commitment to deliver financial literacy training in their areas of operations.

Application Guidelines

NAPC is accepting applications from Region XII- and ARMM-based organizations to participate in the Regional Training of Trainers on Financial Literacy to be held in General Santos City on November 20-23, 2007. Applications should follow the succeeding guidelines and must be limited to 10 pages.

1. Letter of Intent and General Information
   1. Statement of intention to participate in TOT
   2. Nature of institution and description of programs/projects/activities
   3. Contact information of institution
   4. Name and contact details of representative
   5. Duly signed by head of institution
2. Outreach Capacity and Areas of Operation
   1. Geographic coverage of existing programs and services
   2. Number and nature of current and target beneficiaries/partners/members
   3. Plans for expansion
3. Training Capacity
   1. Information on training programs (content, target audience, duration)
   2. Description of previous experience/s in conducting training
   3. Core competencies of training staff
4. Proposal to Conduct Financial Literacy Training
   1. Description of plan to deliver financial literacy training
   2. Resource requirement for training and potential sources
   3. Expected output/learning outcomes

The deadline for submission of applications is November 9, 2007. Applications should be sent by email or fax to:

ANDREA S. ALFORTE
Technical Officer and Point person for Financial Literacy
Microfinance Unit, National Anti-Poverty Commission
Email: hey.drey@gmail.com / napc_mfu@yahoo.com
Fax: (02) 426-5198 / 426-5249

For questions regarding the Regional Training of Trainers on Financial Literacy or the National Financial Literacy Program (NFLP), please contact Ms. Alforte at (02) 426-5028 local 134 / 426-5198 (direct line).