What’s in store for financially literate Pinoys?

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financial-literacy
(Credit:L Pixabay)

MJ Gonzales │ Executive Chronicles

Financial Freedom is a long shot dream of many Filipinos.  To attain it some work abroad, some venture into businesses, and some bet their luck in the nearest Lotto outlet.  Despite of the available ways to earn money, many remain in stagnant in their status or worst become poorer than before.  In a report, World Bank commented that Pinoys lose their chance to enjoy various financial benefits not merely because those are expensive, but because they’re not aware.  Thus they recommend that it’s a must for Pinoy to become financially literate.

“Promoting financial literacy is therefore important to achieve greater financial inclusion and boost the growth of micro and small enterprises,” World Bank Country Director Motoo Konishi in  interview with GMA News.

(Credit:L Pixabay)
(Credit:L Pixabay)

GMA News also reported that only half of 20 million Pinoys keep their bank accounts according to World Bank. In addition to this, only few have credit cards (5%) and mortgages (4 percent). Perhaps, this also connected to low numbers of Filipinos (10%) who seek partnership with financial firms.

Meantime, local and international money-making experts advise that education is a great investment not only to get out of money woes, but to fulfill financial freedom.  However because of high fees and intimidation, many shy away from this advice or attending events and reading books related to personal finance.

Pesos and Sense, an educational firm about personal finance and investing, warns that earning big amount money doesn’t solve everything.  An example of this was the case of Dionie Reyes, who spent  P14M he won from PCSO Lotto 6/42 on April 22, 2008 in just three months.  Pesos and Sense added Reyes even acquired debt due to overspending.

“Our culture has taught us that the sure way to become rich is to have a good education, get a high paying job, and live your dreams. Although that is a good advice, a lot of professionals, OFWs, and fixed-income earners know that it is a cycle of “go to work, receive your salary, and pay for the expenses”. The live-your-dream part is always set aside for the future, hoping that things will get better. They are the people who work for money,” the company, which started as a TV program in GMA News TV, shared   “But there are some who learned to make their money work for them. How were they able to do that? They acquired the knowledge of Smart Investing.

As for those who have chance, but don’t mind learning about money management here’s the favorite quote among finance experts and book authors.

‘If you think education is expensive, try ignorance.’ – Lawyer and former Harvard University president Derek Bok.