Savings 101

Objectives
•Define savings
•Identify the different reasons for saving
•Learn about informal savings and different
deposit accounts
•Establish savings goals
•Learn about emergency fund
•What is savings?
•Is having savings important?
•Why do you save?
•Do you have savings?
Kita – Gastos = Ipon
This equation shows that savings is a surplus.
This is very difficult to apply in real life
because expenses are greater than income so
there is nothing left to save. This also gives
the idea that expenses have a higher priority
than savings.
Kita – Ipon = Gastos
This equation shows that savings is required
before spending. This is still difficult to
implement in real life because a lot of us were
not trained to have savings discipline and not
a lot of us have been taught proper money
management.
 Proper money management:
Savings is important in budgeting and it
should have higher priority than expenses.
Many people try this out but fail due to:
•Lack of stamina to consistently save
•Lack of motivation and inspiration to save
•Lack of knowledge about strategies on how to
start and sustain a savings plan
 Savings is the
postponement of the pleasure
of spending
 Save for sunny days!

•Mag-ipon para sa mga bagay na

makakapagpasaya sa iyo at sa
pamilya
 Save to invest!
•Increase income
•Use active income to save and invest
•Make “wants” your inspiration and
motivation to save and invest
 Poor People Save All the Time
• Life Cycle Events
Birth; Education; Marriage; Funeral; Recurrent festivals
• Emergencies
Sickness; Inquiry; Theft; Natural disasters
• Investment Opportunities
Business investments; Purchasing land and other productive
assets; Home improvements
 Informal Savings Limitations
Not Liquid
Savings in-kind Not Divisible
Subject to Fluctuation

Theft & Destruction

Savings at home Relatives’ demand
Trivial Spending

Community Groups Small scope

Rigid amounts and timing
 Features of saving products
• Security • Appropriate design
• Low transaction cost  Frequent deposits
 Proximity Small, variable amounts
Convenient opening hours Quick access
Minimal paper work • Positive returns
 Suggested deposit accounts
• ATM para sa pang-araw-araw na gastusin
• Passbook para sa emergency savings
• Checking account para sa investment
• Joint account kung may asawa o life partner
• Alternative
Payroll account or cash card para walang maintaining
balance
 Understanding time deposits
• Hindi gagalawin ang deposit sa napagkasunduang term
• Para kumite nang mas mataas na interest
• Deposit term: 1 week to >5 years
• Deposit size: Php 1,000 and above
• Could be pre-terminated but usually with fees
• Maaring gamitin bilang collateral – “back to back” loans
 Suggested use of time
deposit
•Emergency fund
•Education fund for children
•Retirement money
Emergency fund = 9 months worth
of expenses
Saan dapat nakalagay ang emergency fund?
• Savings account with ATM
• Passbook
• Time deposit
• MP2 ng Pag-IBIG
• SSS Flexi Fund for OFWs
• Government treasury bills
• Money market fund or bond fund
Bibilhin ko ba o hindi?
 Tips on Savings
• Save in strong cooperatives-members’ earnings are tax
free in coops
• Save in strong rural banks
 Maintain savings up to 500,000 only to be covered with
PDIC insurance protection
Place long term time deposits to negotiate for higher returns
Time deposits placed for 5 years and 1 day are tax free
If possible, create a settlement account for interest earned
on time deposits
ACTIVITY: TAMANG FINANCIAL PRODUCT
 Ano ang tamang financial product na dapat
gamitin?
• Situation 1: Nagkasakit ang 7 taong gulang na anak ni
Maria at Enrique. Kinakailangan nila ng PhP5,000 para
mapagamot ang anak sa ospital.

Insurance Savings Loan

 Ano ang tamang financial product na dapat
gamitin?
• Situation 1: Nagkasakit ang 7 taong gulang na anak ni
Maria at Enrique. Kinakailangan nila ng PhP5,000 para
mapagamot ang anak sa ospital.

Insurance Savings Loan

 Ano ang tamang financial product na dapat
gamitin?
• Situation 2: Isang karpintero si Alex at sinusuportahan
niya ang kanyang asawa at 3 anak. Nahulog siya sa
hagdanan at nabali ang kanyang paa. Sabi ng mga
doctor ay hindi siya makakapagtrabaho sa loob ng 2
buwan.

Insurance Savings
 Ano ang tamang financial product na dapat
gamitin?
• Situation 2: Isang karpintero si Alex at sinusuportahan
niya ang kanyang asawa at 3 anak. Nahulog siya sa
hagdanan at nabali ang kanyang paa. Sabi ng mga
doctor ay hindi siya makakapagtrabaho sa loob ng 2
buwan.

Insurance Savings
 Ano ang tamang financial product na dapat
gamitin?
• Situation 3: May tindahan si Sara na pinagkukuhanan
niya ng kanyang panggastos. Namatay ang tatay ni Sara
dahil sa sakit. Inaasahang marami ang makikiramay.

Insurance Savings Loan

 Ano ang tamang financial product na dapat
gamitin?
• Situation 3: May tindahan si Sara na pinagkukuhanan
niya ng kanyang panggastos. Namatay ang tatay ni Sara
dahil sa sakit. Inaasahang marami ang makikiramay.

Insurance Savings Loan

 Ano ang tamang financial product na dapat
gamitin?
• Situation 4: Si Miguel ay isang magsasaka na
dumedepende sa kaniyang ani. Tinamaan ng El Niňo
ang kanyang mga panani. Inaasahang makakahalati
ang kita niya sa anihan.

Insurance Savings
 Ano ang tamang financial product na dapat
gamitin?
• Situation 4: Si Miguel ay isang magsasaka na
dumedepende sa kaniyang ani. Tinamaan ng El Niňo
ang kanyang mga panani. Inaasahang makakahalati
ang kita niya sa anihan.

Insurance Savings
 Ano ang tamang financial product na dapat
gamitin?
• Situation 5: Si Josephine ay isang single mother na may
kumikitang bakery. Kinakailangan niyang operahan at
kailangan niyang isara ang kanyang bakery sa loob ng 6
na linggo. Sa mga panahong iyon, kakailangan niya ng
pera upang ipambayad sa mga bills/bayarin.

Insurance Savings Loan

 Ano ang tamang financial product na dapat
gamitin?
• Situation 5: Si Josephine ay isang single mother na may
kumikitang bakery. Kinakailangan niyang operahan at
kailangan niyang isara ang kanyang bakery sa loob ng 6
na linggo. Sa mga panahong iyon, kakailangan niya ng
pera upang ipambayad sa mga bills/bayarin.

Insurance Savings Loan

• Ang solusyon sa maraming problema ay hindi utang.
• Maging laging handa - kumuha ng insurance at sanayin ang pag-
iimpok.
Key Learning Points
•In saving, one should have strong
inspiration and motivation.
Key Learning Points
•Having an emergency fund is
important since it helps people
prepare one from severe
emergencies.
Key Learning Points
•It is best to put savings in a bank. This
is important because you start your
relationship with the bank through
savings. Informal saving has limitations.
Key Learning Points
•The key to starting a savings plan is
to start immediately and to save a
small amount in the beginning until
the habit o savings is formed.
(SEDPI logo)

Website
www.sedpi.com

Telefax
+632-433-8795

Office Address
Unit 303, Loyola Heights Condominium
23 Dela Rosa Street, Loyola Heights
Quezon City