BSP spearheads financial literacy campaign

BEING financially literate lies basically on the knowledge and management of finances.

This was stressed during the Economic and Financial Literacy forum led by Banko Sentral ng Pilipinas (BSP) La Union as it sees a need to intensify the efforts of financial education to ensure financial inclusion of majority of the Filipino people.

Regional office senior executive assistant Marian CarbonellSuaso during the forum said regardless of how much income one obtain, there should be preparations and goals in saving and investing..

Suaso added people can save through a longterm plan where in employees should hinder from the aim of buying gadgets such as laptops, expensive phones, and cars.

The BSP official added steps towards financial literacy starts when people begins to set money in preparation of their future including after retirement. One sample shows one person with a goal that after retirement with P3 million.

By the time the person start to save money by the age of 25 entails a monthly savings of P4,948 to reach the P3 million goal. A P7,716 monthly savings for 35year old, P14,305 for 45year old and P22,604 a savings per month for a 50-year old.

“We should start to invest with our savings. we can also invest through loan such that there is a secured earning from the invested loan where it should be higher than the interest being paid,” added Suaso.

Suaso said there are number of investment opportunities in the market but the reality in investing remains as a personal preference. The decision, added Suaso, is solely base on how much money one can invest and the risk they are willing to make.

A consumer expectations survery conducted by BSP shows cooperatives for the past months increase its savings from 2007 with 15.7 percent to 45.9 percent in 2017.