Financial Literacy of

Filipinos
July 14, 2020, The Philippine Star
• Bangko Sentral ng Pilipinas (BSP) said there is a need to improve
financial literacy and capability to help Filipino families cope and
recover from the socioeconomic impact of a crisis such as the
global coronavirus pandemic.

• “This pandemic has been difficult, not only for the Philippines,
but also for the rest of the world. It is adversely affecting the
physical, emotional and financial well-being of individuals and
families,” Diokno said.
• Diokno said job loss, business closures, payments of loan obligations,
utility bills, medical expenses, rent, food and other daily needs all
cause distress.

• “Financial distress is a reality for Filipino families living from paycheck

to paycheck, those relying on low-income livelihoods, and those
dependent on remittances from relatives abroad. Even families who
were doing relatively well are increasingly becoming vulnerable as the
pandemic continues,” he said.
• The BSP chief said financial un-preparedness limits the ability of
families to cope and recover from the socioeconomic impact of the
ongoing health crisis.

• “Even without a crisis, the failure to save for specific goals such as
an emergency fund, or the unnecessary expenses that lead to over-
indebtedness, can compromise the health, harmony and happiness
of families,” he said.
• Data showed only 23 percent of Filipino adults have accounts, while the most
vulnerable sectors have no bank accounts where social assistance could be quickly
channeled.

• Nearly half or 48 percent of adults have savings, but 68 percent of them keep
savings at home. More than a third of Filipino adults are unable to meet regular
spending needs, and resort to loans to deal with emergencies.

• Furthermore, only four percent of the adult population use electronic payments and
only 18 percent have insurance, while only three percent invest in financial
instruments.