Financial literacy is an often-neglected area in the lives of many Filipinos. Data shows that only 48% of Filipino adults have savings, and over 68% still keep their money at home. The same survey says that only 23% of Filipino adults have bank accounts, and the most vulnerable citizens do not have access to such financial services.
Having an educational background and being a salaried individual also doesn’t guarantee financial know-how. Around 65% of Filipinos served by online financing services in the country still experience some budget gaps at different times.
What is Financial Literacy, and Why is It Important?
Financial literacy goes beyond knowing how to manage your money. When you understand and learn how to maximize your finances, you can make sound decisions to save and grow your assets.
The key areas of financial literacy include personal financial management, budgeting, and investing. When one knows how to manage their finances, they can adopt a substantial investment and a savings plan that will allow them to live their dreams.
How Filipinos Can Improve Their Financial Literacy
Learn how to improve your financial literacy with these tips.
1. Subscribe to financial newsletters or read eBooks
Subscribing to trusted financial newsletters or downloading eBooks about financial literacy will help you level up your financial management skills. The good news is many of these are free online! Accessing these resources will allow you to learn about money management.
2.Listen to money management podcasts
Instead of playing your favorite songs while driving, doing chores, or simple tasks, why not tune in to money management podcasts? There is a wide array of shows to choose from: some are geared towards millennials, while others cover family finances. What show you’ll like will depend on what you’re interested in.
3.Take a financial literacy class
Many adults go through life earning money without knowing how to make it work for them. From managing personal finance to bigger goals like growing the value of your investment portfolios, there is a wealth of information available through online classes that tackle money management.
4. Apply to become a financial advisor
A financial advisor helps clients make decisions on wealth management. Their work covers executing trades in various markets on behalf of their clients, building tailor-made financial plans, and regularly checking in to re-evaluate and re-calibrate financial goals when necessary.
Having the ability to teach financial management topics to others is one of the best ways to learn about money. Not only will you know how the industry works, but you’ll also learn how your client’s respective relationships with money affect their financial situation. Financial lessons gleaned from real people’s experiences will give you better insights into managing your finances.
5. Learn how to navigate the stock market (internal link opportunity to Blog88 - A Quick Guide to the Philippine Stock Market)
Stock trading can be tricky and involves consistent focus because markets and economies are volatile by nature. Arming yourself with in-depth knowledge of the stock market dynamics before throwing your hard-earned pay into company shares is key to succeeding. Understanding how the stock market works will give you the confidence to take calculated risks to grow your wealth.
6. Dissect the different parts of insurance and investment
Financial products like insurance plans have different parts and features that could enhance your wealth-building strategies. For example, Variable Universal Life (VUL) insurance is an investment plan and life coverage in one, allowing you to have financial flexibility.
Read the fine print, list your questions, and speak to a qualified representative about your concerns on your insurance and investment plan of choice.
7. Utilize social media resources
Financial experts usually have investment literacy resources on their social media accounts. Following the official pages of motivational speakers in finance, wealth coaches, or business personalities gives you access to short, bite-sized content that can motivate you to work on your financial goals.
8. Seek support from other people with the same goals
Finding a community of like-minded individuals who are also pursuing financial freedom will help motivate you on your journey to wealth building. You can empower your tribe when setbacks arise, learn from each other’s experiences, and gain confidence in pursuing your goals because you know that you are supported in your journey towards financial literacy.
9. If you have kids, teach them about money
Having a healthy relationship with money starts during childhood. Teaching your kids how to save money increases not only their financial literacy but yours too, especially when you simplify financial concepts and explain them to your kids in a way they will understand.
10. Consult a financial professional
Talk to financial experts who can answer your questions about saving, investing, loans, insurance, business, and other money-related concerns. They can offer a wealth of resources and educated insights on day-to-day money management, as well as more complex financial matters.
Make Your Money Work for You
Learning how to manage your finances is not just about skipping a couple of days buying lattes in your favorite coffee shop or placing your hard-earned money in the bank. Actively taking control of your money involves putting effort into learning financial management strategies.
There are several ways you can grow your money and handle your expenses better. One of them is finally dipping your toes into insurance with investment or VUL BPI AIA makes it convenient to get insured despite the health crisis. Schedule a virtual appointment with our Bancassurance Sales Executives to know more.