For parents and parents-to-be, it is crucial to establish financial security in order to provide a good life for their kids. But in these hard times, how are Filipino parents doing in terms of handling their finances?
Rather poorly, if you refer to the results of the Consumer Finance Survey conducted by the Bangko Sentral ng Pilipinas (BSP), which claims that 8 in 10 heads of Filipino households have no bank deposit accounts.
4 out of 10 households don’t have cash on hand for emergency purposes, and 6 out of 10 households have insufficient funds for the same purposes. The BSP survey goes further to indicate that the average amount of money Pinoy households can spare for emergencies is only P1,681.
10,520 households were included in the survey, of which 3,872 are based in Metro Manila and 6,648 of which are located in areas outside the National Capital Region (NCR) such as the Ilocos Region, Central Visayas, and Davao. The survey was done between November 2009 and January 2010.
Why is there such a big number of Pinoy families who do not have a bank account? Here are some of their reasons:
• They don’t have enough money to deposit in a savings account.
• They don’t see the need for a bank account.
• The maintaining balance required for such bank accounts is too high.
• It’s such a hassle making transactions with banks.