Financial Literacy. A Hope for Filipinos.

Financial Literacy

Financial Literacy is the ability to manage money such as budgeting and investing. Lack of this skill is the financial illiteracy of which the Philippine Stock Exchange (PSE), joins the World Investor Week 2020.

It is the global campaign by the International Organization of Securities Commissions (IOSCO) and the World Federation of Exchanges. It aims to understand the importance of educating investors and protection.

Together with other countries, the PSE join to give Ring the Bell for Financial Literacy by the Pres. Ramon S. Monzon. 

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Pres. Monzon said the key problem today is the lack of learning in handling personal finance.

  • 29% owned formal accounts, and
  • 25% have investment instruments.

From the survey, over 50% do not have a savings from the bank account. That is true for Filipinos for having a reason that some do not have savings in a bank.  The sad part, they cannot complete the requirements for they do not have ID to prove their true identity. They put in their piggy bank instead.

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Mutual Fund, UITF, Retail bond, and Market Securities are some examples of investment securities. 75% of Filipinos do not invest in any investments mention.

Filipinos loved one day millionaire. Once they have cash, they put on exoenses until no money left in their pocket.

The desire to earn fast will lead to investment scams. Building money takes time. You can double your interest earned after 5 years.

Reasons for not Investing

To educate financial literacy to the Filipinos, Securities and Exchange Commission (SEC) chairperson, Atty. Emilio B. Aquino lists the reasons for not investing:

  • Work Instability (65%)
  • Perceived high cost of investment (20%)
  • Lack of Awareness of investment schemes (15%)
  • Perceived lack of need to invest (11%)

If you look at his lists, no permanent job is the primary reason that Filipino’s cannot save and invest money. Followed by thinking about investing in the stock market is for rich people only.

From the word Financial Literacy, to invest in investment instruments, the basic rule is to read Personal Finance.

That is why he concludes of low investment is because of a lack of public awareness and knowledge on investing.

Why Financial Literacy?

Why Filipinos need to financially literate. Atty. Aquino tells that Financial Literacy:

  • Empowers with knowledge and skills to make sound financial decisions.

If you have knowledge of managing your finance, you need to master skills (investing, budgeting, cash flow). This important foundation will lead you to make good financial decisions without depending on others. You make your own decisions according to your principles, goals, knowledge, and personal financial experience.

  • Protects against misleading and fraudulent investment schemes.

Financial education protects you from investment scams because you know that savings and investing takes time to see the result.

  • Enables the desired quality of life.

If you are wondering why the rich people become rich because they use their money wisely. Stop making excuses.

The right mindset, confidence, and financial knowledge are the secret of your quality of life.

How to create your quality of life?. Act today and start now.

How to spread Financial Literacy

Read a lot

The first step is to read financial books. To understand your basic personal finance, which is the savings in the bank, cash on hand, budgeting, and debt. Since this is your everyday activity, you will understand the financial terms. This will level up to research how to save and budget money.

Working skeletal workforce in this pandemic will get you a wonderful opportunity because you have time to read the investing.

You can write your greatest why and create the long-term financial goal. Build your network. You have a stored knowledge once your work back to normal. so it is easy for you to invest right away.

PSE offers a series of Webinars every Friday. Start from 3:15 pm to 4:30 pm PST.

pse october web series
I screenshot while watching replay their opening ceremony on PSE Facebook account

We are the top using of Facebook platform to connect with our friends.

The PSE offered a web series in which you can learn more in personal finance and investment while stay at home.

From October 02 to 30, 2020, a one-month webinar series you can watch on their Facebook page.

  • Investing in Initial Public Offerings.
  • Managing your Finances: steps to Financial Freedom.
  • Multiple ways to grow your money through Mutual Funds.
  • Profiting from Mega Trends and Historical Patterns.
  • Determining a stock fair market value.

Spread the news on different Social Media Platforms

The Filipinos especially the youth almost look for their social media accounts to see the latest stories from their friends. With this advanced technology, PSE uses different social media platforms to reach them. These are the 

  • FB page
  •  Twitter
  • Instagram, and 
  • YouTube.

What’s inside on their articles?

  • Provide info index level
  • Products
  • Upcoming Offerings
  • General Stock market Knowledge

In the year 2019, only 1% of the population invested in the stock market. Pres. Monzon and the rest of PSE have this mission, more Filipinos will be taking part in the stock market. They wanted to grow their savings over time and financially prepared for their retirement.  

Calculated Risks

The more you embrace the consequences to take a risk, the big chance to earn money.

Too much taking a risk without creating a plan is dangerous. It is best you have knowledge in finances, take a baby risk step, and know when to stop.

Take for example, you have a P20,000.00 savings in bank. You wanted to earn more by trade in stock market. If you are still single without responsibilities and young, you can put it P15,000. If you have a breadwinner or build a family. P5,000.00 to P10,000.00 is a good decision to start.

Related Post: How to increase money to get out of Debt


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