Senator Idol Raffy Tulfo filed a measure seeking to provide free financial literacy training programs for OFWs as a pre-departure and post-arrival seminar to prevent them from being victimized by various investment and online scams.
Tulfo, Chairperson of the Senate Committee on Migrant Workers, filed Senate Bill (SB) No. 2078 promoting and developing financial responsibility and literacy of OFWs by providing them with the tools to better manage their finances.
“Numerous Overseas Filipino Workers (OFWs) are victimized by various investment and online scams. Due to a lack of financial knowledge, a great number of OFWs are exploited and swindled off their hard-earned money and return home to their families empty-handed,” the bill’s explanatory note read.
“As such, financial education remains the key component to equip Filipinos, most importantly OFWs, with the skills and knowledge to make sound financial choices,” it added.
Financial literacy is defined as the ability to effectively apply financial skills for budgeting, investing, and overall management of personal finances.
According to the Bangko Sentral ng Pilipinas (BSP), the average Filipino remains to have low levels of financial literacy which make them have a difficult time making important decisions regarding savings, investments, loans, and many more.
Tulfo noted that the onslaught of the COVID-19 pandemic showed all Filipinos the importance of financial safety and stability in times of economic depression.
Under SB No. 2078, all OFWs shall undergo mandatory financial literacy training seminars which shall become an integral part of the Pre-Departure Orientation Seminar (PDOS).
Financial literacy should include education on financial products, such as stocks, bonds, insurance, and mutual funds, which are available in the market.
Moreover, Post-Arrival Training Seminars (PATS) on financial literacy shall likewise be required of OFWs within a reasonable time upon their arrival in a country of destination on their first employment contract or those who transfer from one place of work to another without stopping by the Philippines.
The PDOS and PATS shall be primarily conducted by the Department of Finance (DOF), as the lead agency, in coordination with the Department of Migrant Workers (DMW), the Overseas Workers Welfare Administration (OWWA), and accredited PDOS providers across the country, including the embassies or consulates, whichever may be available, in the country of destination.
