BAGUIO CITY (PIA) — The Bangko Sentral ng Pilipinas (BSP) emphasizes the importance of saving for emergencies, life goals, daily expenses, and retirement.
During the Economic and Financial Learning Program (EFLP)-Session for the Workforce 2024 conducted by the BSP, Chona Remedios Malabanan, Bank Officer IV of the Economic and Financial Learning Office, said that individuals must seriously consider saving for emergencies and retirement.
Based on BSP’s 2021 Financial Inclusion Survey, 81 percent of Filipinos save for emergencies, 43 percent save for life goals, 41 percent for daily expenses, and only 12 percent save for retirement.
Malaban said an emergency fund is something that everyone must give serious thought to. She shared that according to financial experts, an emergency fund must be three to six months of monthly expenses.
“Emergency fund is money set aside for emergencies, circumstances na hindi natin inaasahan,” she said.
Emergency funds can be used during sickness, calamities, accidents, epidemic, unemployment, and death.
Malabanan also cited the importance of prioritizing retirement funds especially with studies showing that the life expectancy in the Philippines as of 2021 is 72 years.
Only a small number of Filipino adults have pension plans and most are part of mandatory retirement schemes for public and private employees, she noted.
She also mentioned a study about the aging population in the Philippines, which is why there is a need to strengthen financial literacy programs focusing on retirement planning and saving.
To save, you must prioritize saving, keep your expenses low, increase your income stream, and start early, Malabanan said.
“The golden rule is live within your means. ‘Wag kang kumuha ng lifestyle na hindi mo afford. Ang bagong golden rule is live below your means para makapag-save kayo.”
The BSP conducted the EFLP in a blended mode. This is the flagship program for delivering directly key messages on economics and finance to target stakeholders, specifically the general public. (JDP/DEG-PIA CAR)
