ACCORDING to the results of the latest Citi Financial Quotient (Fin-Q) Survey which was released by Citibank Philippines, 6 out of 10 Filipinos with either a bank account or credit card consider themselves as “better off than their parents and are secure in their current jobs.”
However, the results also revealed that Filipino consumers’ overall financial quotient still needs improvement at 48.9 (maximum score is 100). Compared to the score in 2009, there was a slight dip from 49 to 48.9, but it was higher than 46.6 in 2008 and 47.8 in 2007.
Through global research firm Big Picture Research, Citi conducted the survey with 5,500 people across 11 countries, including the Philippines. Respondents were over 18 years of age who have bank accounts or have major credit cards.
65 percent think that they are more financially stable than their parents, especially for those earning P700,000 or more annually. 62 percent claim that they are secure in their jobs.
The latest results showed that Filipinos have “very positive sentiments on their quality of life, financial future and retirement savings.”
“More than 71 percent of those surveyed said they were ‘very satisfied’ and ‘satisfied’ about their overall quality of life, a double-digit increase from the previous year’s results. Optimism about one’s financial future also improved to 82 percent. On retirement savings, 56 percent said they knew how much they would need and had some savings set aside.”
This positive outlook from Pinoys maybe due to a better understanding of money management. 57 percent of total respondents felt that they had a “good” or “very good” understanding of money management and personal finances.
Better access to financial education plays a big factor in helping Filipinos manage their current finances and prioritize saving for the future.
According to Citi, Pinoys’ top three financial concerns says it all: “building savings back up after the global financial crisis, meeting monthly expenses, and doing a better job of saving for retirement.”
Citi country officer Sanjiv Vohra said that based on the research, “Filipinos are becoming more determined to take charge of their money and are responsible users of credit.”
Financial literacy is one of Citi’s main goals. “Across all metrics, we saw an improvement in behavior and attitude toward financial planning, products and services.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,” Vohra said.
While eradicating poverty continues to be a challenge for the country and for most of the Filipino population, it is comforting to know that those who are financially-capable are imbibing important lessons in money management.
And while financially-secure Filipinos may seem to be a small group compared to the general population, this optimism is still a significant sign of a promising beginning — hopefully, one that will be emulated and passed on by every striving (and succeeding) Juan.
(www.asianjournal.com)
(LA Midweek Jan 8-10, 2011 Sec A. pg. 6)