Who Needs Financial Literacy?


Who needs financial literacy

Whenever the topic of financial education is brought up, most Filipinos brush it off thinking that it is only for businesspeople or for the “rich”. The truth is, we all need it. If you want to be free financially or if you want to be rich, you need to learn this!

Although we don’t pay much attention to it, it does affect our daily lives. To put a child to school, to own a house, to drive a car, to pay the bills – all of these will be affected by both having and not having the knowledge about handling money wisely.

Financial literacy

Money and Knowledge

People think that acquiring huge sums of money will solve their problems. It may be true for some, but without the knowledge to handle it correctly, others might find themselves in a more problematic situation.

You may have heard of lotto winners who ended up being bankrupt or in a financial mess. This is what usually happens to instant millionaires who suddenly find themselves rich – in fact, too rich that they do not know what to do with the money anymore.

This is exactly what happened to Dionie Reyes who won 14 million pesos in the PCSO Lotto 6/42 draw last April 22, 2008. After winning, he lived the life of a millionaire.

He bought a P4-million house in an exclusive subdivision, drove a sports utility vehicle, and gave balato ranging from P1,000 – P850,000 to his friends and relatives. He also gambled, womanized, and went out every night. After 3 months, he spent all of his money and ended up in debt.*

People lose money for many reasons, and overspending is one of them. This is the reason why having money and financial knowledge at the same time is the key that will greatly help in improving one’s life. Money and financial knowledge go hand in hand. Just like what the author Robert Kiyosaki said, “Money without financial knowledge is money soon gone.”

Money Begets Money

Our culture has taught us that the sure way to become rich is to have a good education, get a high paying job, and live your dreams. Although that is a good advice, a lot of professionals, OFWs, and fixed-income earners know that it is a cycle of “go to work, receive your salary, and pay for the expenses”. The live-your-dream part is always set aside for the future, hoping that things will get better. They are the people who work for money.

But there are some who learned to make their money work for them. How were they able to do that? They acquired the knowledge of Smart Investing.

Know Your Options!

Did you know that you have different investment options?

Investment instruments like Stocks, Mutual Funds, Real Estate, Insurance, and others can help you achieve your financial goal. You may have heard these investments before, but do you really know how they work?

Most Filipinos, even though they want to invest in these instruments, are afraid to do so because they fear that they will lose their money. And because they don’t understand it, they will not invest at all! (Read more about fear of investing here: Fear Factor)

As we always say, take the time to learn so you can take away the fear. Understanding the different kinds of investments available will help minimize the fear of investing.

Once you have acquired the knowledge, you will see that investing isn’t so scary after all. You can sleep better at night knowing that you are taking steps today that can potentially change the way you live your life in the future.

Educate Yourself

Gone are the days when information about money is limited. There are books, articles, websites, and seminars that teach financial education to those who need it the most – the common Filipino. These are the students who want to have a brighter future, the parents who want to provide for their children, the young professionals who want to stop working and do what they
really love, the OFWs who just want to return home and watch their children grow, and the thousands of skilled Filipino workers who want to live comfortably.

*Source: Lotto Winner Spends P14M 

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Comments

  1. Angelica Bilbao says

    Splendid Peso and Sense team! Blogs like this are very valuable communicating tool that will help others understand that investing in the stock market is a prime choice.

  2. Weng says

    Just wanted to inquire if u have any upcoming seminars from june 15 to end of aug as we will be home in phil

  3. says

    Thanks for sharing! But I am having doubts if I can attend the seminar… It is quite expensive. Hopefully you can lower down the rates next time! Or maybe have a free seminar for all. Thank you.

  4. Richmon says

    kaya hindi tayo umaasensong mga filipino kasi mahilig tayo sa pahingi hingi at LIBRE,, the knowledge you can get to these seminars is more valuable that even millions of pesos can’t buy :)

  5. says

    Very informative article!

    Personally, the poor and middle class need financial literacy more than the rich. After all, the rich already have a large “buffer” to make mistakes. In contrast, it’s easy for the poor and middle class to get into and drown in debt.

  6. Maria Teresa Serrano says

    all the peso and sense videos are very informative….and i am looking forward to attend some seminars..and to i want to take this opportunity also to invite all to attend a free Seminar of IMG topic is “PRACTICAL MONEY MANAGEMENT AND INVESTMENT STRATEGIES” venue is at Kingscourt makati,3rd floor, This Coming Saturday 9am….

  7. maureen exconde says

    Ive been a follower to all your post in fb for months and it is very informative.. i am an agent of sunlife of canada, and as part of the company our advocacy is also to help educate filipino people be fiancially free.. im quite new in the indusrty, but reading ur articles helps me be more equiped in dealing with my client.. in return i would love to invest attending your seminar.. please send me your rates at mau_ex@yahoo.com.. thanks so much

  8. says

    Salamat mga kasama sa Pesos and Sense you aren’t just educating people BUT are inspiring them as well.. I am one of them that you never failed to inspire. Now inspirations don’t lasts.. ACTION and critical thinking is required too.

    Quick question lang.. my wife and I thought of making ourselves safe first by getting a health insurance and then will go to investing.. what are your thoughts on what we have done?

    Muli ay salamat sa inyo :)

  9. Nehemiah Lopez says

    I really need this, LOL! Though I’m not yet starting to invest, Peso and Sense give me more information about investing. My supervisor recommend the videos then I found out that na may site, the articles are very helpful. I will share this sa mga kapwa ko empleyado ng factory dito sa Bataan na kuntento na lang sa trabaho nila. God Bless.

  10. Norman L. Ocampo says

    Financial literacy is a MUST in our daily lives, we have to acquired it and learned the ropes of financial literacy, just saving 10% – 20% of your income will have a lasting effect on your lives knowing that the distant future holds a life of convenient and worry free, especially for OFWs because living and working abroad is not a lifelong endeavors, a majority of OFWs works only for 20 years an average if you will not save a portion of your salary come to think of what scenario will happen if you choose back to go home, saving EARLY is the best and invest it in mutual funds, stock, real estates, business or treasury bills, do this for you and yourselves i’m sure your future is much more brighter

  11. Alvine says

    Very informative site! Tis site help me a lot when I am starting my financial education and even now I am still following the topics and sometimes reviewing it when I was out of the way. Thanks Sir Aya and P&S staff.

    I was broke last year because of my sister who decided to work abroad, I financed her. Unfortunately She was not able to stay longer due to homesick. What was being left to me is depth. I don’t know what to do until I decided and devoted my self studying financial matter how would I manage my finances. The secret is Take Time, Devote your time, and practice Frugality the secret to financial freedom.

  12. says

    Its like you read my mind! You appear to grasp so much about this, such as you wrote the e-book in it or something.
    I believe that you just could do with a few % to power the message house a little bit,
    but other than that, this is wonderful blog.
    A fantastic read. I’ll definitely be back.

  13. says

    This is really great! Teaching Pinoys the education that they really need is a good mission. Thanks. Nagsisimula na rin akong matuto about financial education. Now I’m starting to have my own blog about common topics of Filipino lifestyle. Well basically TagLish yong site ko kasi I want Pinoy to understand it using our own language. Keep up!

Trackbacks

  1. […] Now, I’m not saying that asking advice for your investment decision is wrong. But you should know the difference between learning from the advice and blindly following the advice. As I always remind everyone, If there is anyone who should take care of your money, it should be you. That’s why before investing in the stock market, ARAL MUNA! […]

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