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Filipinos’ financial literacy needs more push, Home Credit survey reveals

January 30, 2022 11:09 a.m.

The pandemic pushed many Filipinos to be mindful of their personal finances. However, there’s still immense concern on the state of financial literacy in the country. 

Both the 2015 World Bank (WB) survey and Central Bank’s 2019 financial inclusion survey revealed that only half of Filipino adults correctly answered financial literacy questions. 

This was supported by a survey from Home Credit where only 10% of the respondents correctly answered questions that test their knowledge on various financial concepts. 

The said survey was drawn from the consumer finance company’s self-crafted financial literacy quiz found in the My Home Credit App. 

A two-part quiz, it offers users a chance to answer a series of questions involving personal finance and other financial literacy items. 

To get an in-depth analysis of the quiz results, here’s a breakdown of the findings for each question: 
Findings of Quiz 1: Basics of Budgeting, Digital Literacy, and Cybersecurity 

More than 25,000 respondents took the first quiz that covers topics on basics of budgeting, digital literacy, and cybersecurity.

Within May to December 2021, the respondents mostly belong to the age group of 25-39 years old and 63% or majority are female. 

From the results, only 10% got all correct answers from the six questions.

When asked about managing finances, almost half (as many as 10,000) did not apply the ideal saving formula in their monthly budget; they prioritize expenses first and save what is left. 

On interest computation, 57% got the correct answer and the remaining half either got the wrong computation or does not know how to answer.

On a related question about inflation, respondents were asked about the impact of inflation and only 41.8% had the right understanding of its effects on their purchasing power and borrowing decisions. 

Filipinos seemed to be more knowledgeable on investments and risk diversification. 

When asked whether they will spread their money to multiple investments or focus on just one, almost 73% chose to put it into multiple investments to limit their losses, 22.5% for one investment and 4.6% do not know the answer.

Aside from inflation and basic numeracy concepts, cybersecurity and safety are also one of the concepts that are not well-understood by the takers with only 43.4% getting the correct answer – a number slightly lower than 47.8% before the covered period. 

On the flip side, most respondents aced the question on what tasks can be done using digital financial tools at 97%.

The social distancing measures brought by the pandemic might be a huge factor on how well-versed Filipinos have become in using fintech tools for daily transactions. 

In summary, results show that the respondents’ knowledge on all financial literacy concepts mentioned above are in the intermediate level with scores falling under 3 to 4 out of 6.

Basic numeracy, inflation, and cybersecurity and safety are the least understood concepts as indicated in the survey. 

Findings of Quiz 2: The Basics of Budgeting, Saving and Borrowing

The second leg of the financial literacy quiz zoomed in on the basics: budgeting, saving and borrowing.

Launched in September, it covers the period of launch until September, there are over 19,000 responses, with more females attempting to take the quiz and from the age group of 25-39 years old. 

The first three questions concentrated on how to properly plan a monthly budget and how to compute for an emergency fund.

Most quiz takers (66.8%) know that every month, they should at least make a budget plan and 88.4% know that the ideal amount of emergency fund should cover 3 to 6 months’ worth of expenses.

However, only ¼ of users know how to set a SMART Financial goal. 

Regarding the basics of borrowing, almost all (95%) of quiz takers know that paying bills on time every month can help improve their credit score.

A total of 77.1% also answered that a consumer finance company is an institution that could help them avail cash or product loans.

On the similar topic of loan application, 83% knows the concept of loan repayment but only half of respondents know what a cooling off period in a loan is about; 65% knows that there are different ways that could help them approve their loans (such as preparing requirements ahead of time, borrowing an amount that you can pay, etc). 

Looking at the findings of the second quiz, majority of Filipinos have a proper understanding of the basics of some financial concepts but would need guidance on comprehending more specific terms.

Regardless, the results of the second quiz show that the level of financial literacy in the country is promising and would continue to improve if taught properly. 

This is where companies advocating for financial literacy come in. One of which is Home Credit Philippines, a longtime financial provider and financial educator both in global and domestic markets.

Through Wais sa Home, their financial and digital literacy program, they address the concerns revealed in the survey through various initiatives and activities aimed at driving financial inclusion and raising financial literacy standards amongst Filipinos. 

“Our business model and the focal point of our corporate social responsibility efforts is centered on responsible lending. We want to help create responsible borrowers and good payers through financial education and digital financial literacy,” says Home Credit Philippines Chief Marketing Officer Sheila Paul. 

To reach a wider audience and have a steady source of important financial and digital literacy concepts, Home Credit is launching its Wais sa Home website soon to allow more people to gain knowledge on basic money management and digital skills. 

NEWS

Atayde backs PH Olympic fencer, QC fencing development program

4:11 p.m. May 21, 2024

QUEZON City 1st District Rep. Juan Carlos “Arjo” Atayde last week pledged to back QCSEP, a Quezon City fencing program responsible for producing one of the Filipino athletes going to the 2024 Olympics in Paris.

Atayde, a member of the Youth Sports Development Committee in the House of Representatives, said “fencing is one of the many sports that young Filipino athletes can excel in, and we are working with Councilor Joseph Juico so that we can help QCSEP better develop Filipino fencers who can compete not only in local tournaments, but also in international competitions.”

Atayde commended QCSEP for producing a Filipino fencer slated to represent the country in the 2024 Paris Olympics — 22-year-old Barangay Del Monte resident Samantha Kyle Catantan.  

Catantan qualified for the Paris Olympics after winning the gold in the women’s foil event at the Asia-Oceania Zonal Olympic Qualifier last July in the United Arab Emirates. She is the first Filipino fencer to qualify for the summer games since Walter Torres in 1988. 

“QCSEP deserves credit for developing world-class fencers like our very own Samantha Catantan,” said Atayde. “Her qualifying for the Olympics is proof that we should invest time and resources in fencing, which is why we plan to provide support for this sport in our district, and later on the entire Quezon City.”

Atayde stressed that support for sports programs is necessary “if we want to help Filipino athletes achieve their dreams of competing in the Olympics.”

Atayde met Juico, the young fencers of QCSEP, and their parents on May 17 at the legislator’s district office in West Avenue, Quezon City to discuss ways to help and to develop fencers not only from their district, but also cities from all over Metro Manila. 

“It’s great to know that there’s a grassroots sports program for fencing in Quezon City that develops and nurtures kids from all over Metro Manila. With enough helping hands, QCSEP can produce fencers who can excel in the sport and one day win a medal for our country in the Olympics,” said Atayde, who extended financial support for the team’s ongoing programs.

QCSEP Fencing is a program spearheaded by longtime QC 1st District Councilor Juico. It was established 18 years ago and is an active advocate of grassroots sports development.

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NEWS

Activision brings Call of Duty Warzone Mobile to the court with unique basketball collaboration

5:09 p.m. May 19, 2024

Activision has made an exciting move with its latest Call of Duty Warzone Mobile campaign, seamlessly integrating the world of basketball to create real connections within the community. By combining the strategic elements of basketball with the intense gameplay of Warzone Mobile, Activision highlights how teamwork and quick thinking dominate in both arenas.

In a creative collaboration with Jappy Agoncillo, a renowned muralist, illustrator, and devoted COD fan, Activision has transformed a basketball court at SV Ball Park in New Manila, Quezon City into a vibrant, Warzone-themed masterpiece. This unique project not only showcases Agoncillo’s artistic talent but also underscores the synergy between the worlds of basketball and gaming.

For a behind-the-scenes look at the creation of the CODWZM Basketball Court Takeover, check out this video.

Filipinos’ passion for basketball is well-known, with the sport deeply ingrained in the nation’s culture. This collaboration taps into that love, creating a space where fans of both basketball and Call of Duty can come together. Watch how PBA Moto Club, Eruption, Jappy Agoncillo, and Honeycomb Arts brought this project to life in this special feature

Visit the Court:

  • Location: SV Ball Park, New Manila, Quezon City
  • Visiting Hours: Fridays through Sundays from 1 PM to 5 PM
  • Duration: May 16 to July 1, 2024

Basketball and Call of Duty Warzone enthusiasts are invited to experience this one-of-a-kind court, which will be open to the public during the above specified hours to ensure better accommodation and avoid overlapping with regular league games.

Visitors can enjoy the artwork, play basketball, and immerse themselves in the dynamic atmosphere that brings Warzone Mobile’s intensity to life.

Don’t miss out on this exciting blend of art, sports, and gaming. Swing by SV Ball Park and be part of

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NEWS

“Priceless” Nino Muhlach FAMAS trophy sold to Boss Toyo 

12:59 p.m. May 15, 2024

Entrepreneur and child actor Nino Muhlach gave Boss Toyo one of his prized awards from the Filipino Academy of Movie Arts and Sciences (FAMAS) in exchange for P500,000.

But Boss Toyo reiterated that Muhlach’s award is “priceless” and will become part of his future museum. 

In an episode of Pinoy Pawnstars last Monday, Boss Toyo haggled with Muhlach, who personally visited the content creator’s shop in Quezon City to personally give one of his five FAMAS awards and make it as part of his collection.

“Aalagaan mo ‘yan, irerestore mo yan [Take care of that, restore it],” Muhlach told Boss Toyo. 

Boss Toyo said that he wants to restore the award, one of Muhlach’s five FAMAS awards to its former glory and showcase it in his planned museum alongside the award that Jiro Manio sold to Boss Toyo a few months ago. 

Muhlach said that it was Toyo who personally inquired about the award and decided to sell to the content creator one of the five Best Child Performer awards that he received in his career. 

“I decided to give it to him, pero big deal, kailangan alagaan niya and irestore niya and ilagay niya sa museum niya, dahil hindi ko na naalagaan, ‘yun ang deal namin [I decided to give it to him, but big deal because he needs to take care of it seriously, restore it and put it in his museum because I never take care of it. That’s our deal],” Muhlach said.

Boss Toyo said that Nino Muhlach’s FAMAS award is one of his dream items as he wants to note how Muhlach changed Filipino entertainment through his movies with noted Filipino actors such as the King of Filipino movies and legends such as Fernando Poe Jr. and Dolphy. 

“Ikaw ang barometer, ‘pag sinabing ‘child actor’, tandaan natin, wala pa akong nakitang nakadaig sayo as a child actor [You are the barometer of a ‘child actor’ because we have to remember nobody does it better than you],” Toyo said. 

Apart from the award, Muhlach gave to Boss Toyo some of the theater lobby cards from the movies he starred in and produced. 

Aside from acting, Muhlach also dabbled in several businesses, including the El Nino Apartments and Muhlach Ensaymada, which was gifted to Boss Toyo.

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