Updated: September 24, 2014
I’ve been attending a lot of personal finance seminars lately and each time, I learn a little something about the personal finance habit of Filipinos.
In summary, it’s really alarming how poorly we manage our money and how much of the population don’t see the importance of nurturing good financial habits.
Below are some of the facts I’ve gathered on how Filipinos are when it comes to their financial future.
These information come from various sources but majority is taken from a report by SOLAR or the Sun Life’s Study of Lifestyle, Attitudes and Relationships – a research sponsored by Sun Life Financial-Philippines.
86% of Filipinos are concerned with inflation but 67% think savings and time deposits are the best way to beat inflation
It’s good that most people know what inflation is but one should realize that savings and time deposit interest rates are ALWAYS lower than the inflation rate.
Insurance penetration rate remains low in the country with only 3% per annum growth in life insurance sales
Life insurance has been evolving for the past years and many now offer them as an investment package which makes it more beneficial than ever before.
76% are concerned about paying for health treatment YET only 35% rely on health insurance
When I quit the corporate world, one of the first things I did was to get personal medical insurance and I must say that it’s one of the most essential things you need to have. It’s quite comforting to know that you can seek instant medical help when you need it without much worry about the possible expenses. Remember that health makes wealth.
Here are some more very interesting and alarming facts about the personal finance habits of Filipinos:
Out of 100 Filipinos who are at age 65:
- 45 are dependent on relatives
- 30 are dependent on charity
- 23 are still working
- ONLY 2 are financially independent
Out of 100 Filipino children who enter elementary school:
- only 40 gets to attend High School
- only 27 of that will go College
- and only 10 of them will graduate
Out of 100 Filipinos who get sick:
- 95 of them will dig into their savings to pay for the doctor and hospital bills
- but moreover, 53 of those will borrow money from family members and relatives because their savings are not enough
- and in the end, only 19 will be confident enough to pay for the total treatment costs
So which part of the statistic are you?
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Lastly, I encourage everyone to check out the It’s Time Campaign of Sun Life Financial – Philippines. Do take this 10-minute online test with agent Lucy and you’ll learn a lot on how you can improve your finances today.
Oh by the way…