Financial Literacy in Time of Pandemic

Merle S. Vital

The rise of the global COVID-19 pandemic has caused economic repercussions across the Philippines. March 13, 2020 we were informed that classes will be suspended due to the growing numbers of CoVid-19 positive. Schools were closed, students stayed at home, parents stop working, laborers and other employees were also asked to work from home. Suddenly the places became a ghost town, no one sees in the supermarket, buying basic necessities became difficult, and there were more jobless Filipinos. Business stopped, all of a sudden we do not know what to think and do. The national and local government supported us, but the help was not enough. At our end what are we going to do? The current crisis is especially taxing, savings accounts and investments are way down, and millions of employees are working from home, losing sleep and, ultimately, losing productivity. Financial anxiety impacts emotional and physical well-being. The spread of COVID-19 has changed the global landscape, affecting our financial, professional, and social environments. The sudden disruptions caused by this public health crisis are presenting economic challenges with growing repercussions. While some factors affecting financial wellbeing are beyond individual control, financial knowledge can help people better manage their finances through times of hardship and times of prosperity.

Financial literacy is a serious matter in this Digital Age. It shouldn’t just be taught in school but should also be taught at home, even for young kids. It is an awareness of how money should be spent and managed, and how it can be used in ways that would make a person more financially secure in the future. According to Conektome.Com learning about it has a huge impact to us all. First, it helps us understand the value of money so we can handle our finances better; Second, it saves us from acquiring too much debt; Third, it allows us to impart our knowledge on financial literacy to the young generation; Fourth, financial literacy helps us prepare better during times of emergency; Fifth, it enlightens us to invest and create income streams; Sixth, it gives us the opportunity to help boost our country’s economy; and finally, financial literacy gives us the privilege to help the less fortunate.

There are a lot of ways to keep our finances in order amid a pandemic—and even after that according to FWD Insurance. With economic uncertainty continuing to mount, there are still ways on how to keep our finances intact.

(1). 1. Implement a 50/30/20 budget rule. Rule of thumb: 50% of our income goes to basic necessities, 30% are for personal wants like entertainment, and then finally, 20% are allocated towards our financial goals like paying off debts and insurance investments

(2). Don’t hoard. Buy what is basic and prioritized the needs of the family.

(3). Cut back on non-essential spends. Since home quarantine was strictly implemented the non-essential activities are also stopped like going to movies and dining out. We can now do the long and overdue projects we were trying to finish before the lockdown.

(4) . Build an emergency fund. In the 50/30/20 budget rule make sure that the 20% really be placed in the emergency/ health insurance/ saving funds.

The current crisis we are all experiencing will pass and life eventually return to some semblance of normality. Don’t let the news of the day outshine our hope for the improvement of our finances. Be smart! Don’t complicate things! Learn to live a simple life!

--oOo-

III at San Juan High School, Mexico

The author is ADAS