Financial Literacy in the Philippines: Exploring Its Benefits for Filipinos

Money is an important resource that allows you to buy your needs and afford your wants. However, handling your money properly is not a skill that anyone naturally has. You need to invest a lot of time and effort into having financial awareness as a Filipino. 

Financial literacy has recently become a buzzword in the Philippines. As Filipinos realize the importance of preparing for their future, they have become more aware of how they handle their finances.

However, a Standard & Poor’s (S&P Global Ratings) study shows that the country only scores 25% when it comes to financial literacy, ranking in the bottom 30 of the 144 countries surveyed. This shows that Filipinos still have a lot to learn about the topic. To get started, let’s talk about what financial literacy is and how it can benefit you.

Financial literacy refers to the knowledge, skills, and understanding necessary to make informed and responsible decisions about money and financial matters. It encompasses a wide range of topics, including budgeting, saving, investing, borrowing, and understanding financial products and services.

Being financially literate empowers you to set financial goals, create effective budget plans, manage debt, and grow your wealth over time. By being well-versed in financial concepts and practices, you can make sound financial choices, avoid common pitfalls, and build a stable and secure financial future for yourself and your family.

Financial literacy can provide you with several benefits that extend beyond simply understanding money management. With the right knowledge and skills, you can achieve financial security, make informed decisions, and build a prosperous future. 

One of the most significant advantages of financial literacy is helping you avoid major financial mistakes. By understanding basic financial concepts, you can prevent falling prey to poor spending habits, accumulating unsustainable debt, or making ill-informed investment decisions.

Through financial literacy, you are equipped to analyze risks and rewards, understand the implications of your choices, and make prudent financial decisions. This knowledge safeguards you from falling into debt traps, making impulsive purchases, or becoming victims of financial fraud.

Life is unpredictable, and emergencies can strike at any time. Financial literacy encourages individuals to set up emergency funds, which act as a financial safety net during unexpected events, like medical emergencies, job loss, or natural disasters.

Being financially prepared means having the necessary resources to handle such situations without resorting to borrowing or selling assets on unfavorable terms. With financial literacy, you can establish disciplined savings habits, allowing you to withstand financial setbacks and bounce back more effectively.

This also involves knowing where to invest your money to prepare you for life’s unexpected events. Having financial awareness as a Filipino means knowing that investing in a life and health insurance plan in the Philippines will allow you to have peace of mind regardless of the situation you’re in.

Financial goals vary from person to person, ranging from buying a home or funding education to retiring comfortably. Financial literacy is crucial in setting realistic and achievable goals, as well as creating actionable plans to reach them.

It enables you to assess your current financial situation, identify areas that require improvement, and develop strategies to bridge the gap between your current status and desired outcomes. With proper financial literacy, you can create long-term financial plans, track your progress, and stay on course to accomplish your objectives.

Investing in a life insurance and investment plan is an excellent way to build your future and reach your goals. This policy provides you with financial protection and peace of mind so that you can focus on working hard for your goals while also helping you grow your money.

Life is filled with significant financial decisions, such as purchasing a home, investing in the stock market, or planning for retirement. Financial literacy empowers you to make informed choices with confidence.

Understanding complex financial instruments, like mortgages or retirement accounts, allows you to evaluate offers, negotiate better terms, and avoid high-cost products. Moreover, financial literacy provides the knowledge to analyze market trends, assess investment opportunities, and allocate resources strategically, increasing the likelihood of favorable outcomes.

Financial stress is a prevalent issue that can take a toll on your mental and physical well-being. The lack of financial literacy often contributes to this stress, as you may feel overwhelmed and uncertain about managing your money effectively.

However, with financial literacy, you gain a sense of control over your finances, enabling you to budget efficiently, save consistently, and plan for your future confidently. As you become more adept at handling your money, your financial stress is reduced, leading to improved overall well-being and peace of mind.

Allianz PNB Life has several programs that aim to teach financial literacy in the Philippines. Our programs are more focused on life and health insurance sustainability, aiming to build a financially secure and livable future for the next generations.

Our Ride Safe Program was first launched during the pandemic when the lockdowns hit and public transportation took a toll. This aims to create a cycling culture among Filipinos and help them discover the health benefits and sustainability of the activity.

We have already installed solar-powered pit stops and bike lanes in Metro Manila and have opened The BikeYard, a space where cyclists can hang out and repair their bikes when necessary. To expand the program, Allianz is looking at offering skills development, including bike mechanic training, to provide an additional livelihood opportunity to Filipinos.

Allianz is also dedicated to social inclusion, partnering up with different organizations that help the Filipino people. We have already worked with SOS Children’s Villages Philippines and the Philippine Heart Association (PHA) for Camp BraveHeart to support children with heart ailments and spread awareness of cardiovascular diseases.

Allianz has also had the chance to partner with the Creamline Cool Smashers. This collaboration has allowed us to explore the importance of insurance for athletes and young people who are interested in joining the sports industry.

Lastly, Allianz Kaagapay is a financial literacy program dedicated to educating Filipinos about finance and money management. It consists of several lectures that focus on the different aspects of financial awareness anyone should have as a Filipino.

With all these programs lined up, Allianz PNB Life slowly but surely creates a culture of financial literacy and sustainability among Filipinos. In time, you can expect a new generation of Filipinos who can confidently manage their finances and make informed decisions to build their futures.