If we’re being totally honest, most millennials rarely talk about financial planning and investing in something for the future. It is often construed as a lot of work… and I’m no exception. I honestly have no idea about financial management. When I first started receiving paychecks, I almost always end up spending most of it over things I don’t need.
However, I can see that I am not alone in this struggle. One common conversation I have had with batch mates and colleagues is how financially unstable we are. We often rant about how we were not taught how to manage finances in school. We graduated high school without knowing what to do with cheque books. We were acquainted with accounting, sure, but the thought of mere budgeting fazed us. For a time I thought our batch was the only ones who didn’t know how to save but once I entered the workforce, I realized that this was a generation thing. Most of the people aged 20-30 had trouble with maintaining financial stability and lived paycheck-to-paycheck… thus, the era of petsa de peligro memes was born:
…. and with this came the rise of articles about How to Survive petsa de peligro:
(https://www.buzzfeed.com/isabellelaureta/soup-na-ituuuuu)
All these articles and memes may sound funny but it can’t hide the fact that our generation is a generation of spenders, not savers. This is where PHILAM Life’s “Live Ready” Financial Literacy Advocacy Program comes in. Financial Literacy refers to “the ability to understand how money works in the world: how someone manages to earn or make it, how that person manages it, how he/she invests it (turn it into more) and how that person donates it to help others.”
On June 12, 2017, I opted to establish my own financial independence by meeting with Philam Life. During the meeting, Ma’am Tine expressed Philam Life’s “Live Ready” program and how it addresses the lack of financial literacy in the Philippines through educating young individuals.
According to a study done in 2015, only 25% of Filipinos are financially literate. Philam Life’s “Live Ready” campaign began in January of this year and ends this month, which is also their 70th anniversary. So far, the program has been doing well, as she stated the rise in the number of millennial individuals who approach them for aid in financial planning.
According to her, millennials are often the ones who are pressured to shoulder their parents’ lack of insurance. Most Filipinos rarely save or take insurance because they live by the “INCOME-EXPENSE= SAVINGS” formula.
The rich man’s formula is supposed to be “INCOME- (SAVINGS+INVESTMENT)= EXPENSE. In this way, the individual will be able to save and invest money for the future. The first formula does not prioritize savings in the sense that whatever is left of their income will be their savings. This mindset allows the individual to spend more.
The percentage of financial literacy and the percentage of individuals who want to retire by the age of 50 is indirectly proportional. Of course, most of the workforce want to retire by 50 yet they are not (or are rarely are) prepared for it. Ma’am Tine explains that this goal of retiring early will not be reached unless the individual starts making sacrifices. The idea is to not spend beyond your means.
For example, you earn Php 350 a day and yet you also drink a Venti Starbucks coffee daily, you definitely won’t reach your goal. Instead, maybe you can settle for Php 10.00 a 3-in-1 packet and limit your Starbucks runs to once a week.
By the end of the meeting I was more aware of the amount of money I fail to save. I am definitely cutting back on some of my expenses in order to splurge for more important things in the future. Another thing I want to do is invest in something for my retirement.
If you want to invest in your future, you can check out Philam Life’s website and if you want to talk about your financial woes and questions, you can contact:
CRISTINE M. SUBANG
0999 401 7324
cristinesubang@gmail.com
Or if you’re in Davao you can visit their branch in JP Rizal St.
Spend wisely, friends!
DAILY GAELLEY 