Survey Reveals Filipinos are Optimistic about their Financial Future

More than 71% of Filipinos are “very satisfied” and “satisfied” about their overall quality of life, a recent survey by the Citi Financial Quotient (Fin-Q) Survey reveals. This is a double digit increase from the previous year’s results. Optimism on one’s financial future is also up from last year at 82%. On retirement savings, 56% confirmed they know how much they would need and have some savings set aside.

The annual Citi Fin-Q Survey is designed to measure the Financial Quotient or well-being of consumers. In this latest survey, Filipinos scored 48.9, a slight dip from 2009’s 49 but much better than 2008’s 46.6 and the baseline score of 47.8 back in 2007 when the survey was launched. The questionnaire consisted of over 40 questions covering a range of topics closely related to financial decision-making and smart financial habits for a maximum possible score of 100.

The latest leg surveyed 5,500 people across 11 countries including Australia, China, Hong Kong, India, Indonesia, Korea, Malaysia, Singapore, Taiwan, Thailand and the Philippines, with 500 interviews held per participating country. All respondents were over 18 years of age with either a bank account or a major credit card.


Positive Outlook
According to Citi Country Officer Sanjiv Vohra, the results of the survey validate Citi’s commitment to financial education. “The earlier consumers understand the importance of planning their financial future (and) … reaching their financial goals. At Citi, we have been reaching out to a wide variety of audiences, not just to our clients, to promote financial literacy. We engage them in an array of discussions from making a budget and sticking to it, to understanding the many investment options available to setting up retirement funds now and not later.”

 

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The Filipinos’ positive outlook can be credited to a better understanding of money management, according to the survey. Fifty-seven percent feel they have a “good” or “very good” understanding about money management and personal finances, and nearly 7 out of 10 surveyed say they are better off today than their parents were at the same age, a sentiment that is significantly stronger with those earning P700,000 or more annually.

With better access to financial education, Filipinos are able to manage their current finances, and have become even more conscious about saving for the future. This is evident also in the top three financial concerns they identified: building a savings back-up after the global financial crisis, meeting monthly expenses, and doing a better job of saving for retirement.  


Across Asia Pacific
For the third consecutive year, the Citi-sponsored research revealed a year-over-year increase in the Citi Fin-Q Score or financial well-being of Asian consumers. The Citi Fin-Q for the region currently stands at 54.6 out of a possible 100 points, up from 52.3 in 2009 and 50 in 2008.

As with the Philippines, 75% of respondents in the Asia Pacific region showed increased satisfaction in their current quality of life. An equal number, 75% were “very optimistic/optimistic” about their financial future.  

Sixty-five percent of respondents expressed confidence that their retirement savings will lead to a comfortable life in retirement. Not a surprising fact, since more than half reported that they set aside some savings from every pay.

The survey also marked an increase in the perception of the respondents’ personal financial situation, as half of them said they are “much better off” or “somewhat better off” compared to one year ago.

 

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Money-Smart, Card Savvy
“The survey numbers in the Philippines show that Filipinos are more determined to take charge of their money and are becoming more responsible in using credit,” pointed out Vohra.

Two thirds of Filipinos (69%) said their credit card plays an important role in helping them manage their finances, and 48% indicated that they pay off their full outstanding credit card balance on a monthly basis.

Forty-one percent believe they have enough insurance to protect them and their families, and 40% are confident they have built up enough savings that would last them three months or more.  On the average, Filipinos reported having nine weeks of savings in reserve.

“Across all metrics, we saw an improvement in behavior and attitude towards financial planning, products and services,” related Vohra.  “We will continue to do our part in promoting financial literacy, working with the right partners around the country to engage more Filipinos across all walks of life.’


Photo from flickr.com