Manila, Philippines

More Filipinos are Investing: Improved Financial Literacy

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Good news. At least our collective efforts are gaining some traction. Inquirer reported that more Filipinos are turning into investors, which should be a good thing right?

And the Filipinos engaged in investments are getting younger as well (which I thought was the case two years ago). But we definitely need more. More penetration to other socio-economic classes as well.

Social Networks and Internet

Aside from the various factors cited in the article, I would say that social networks and the increased accessibility of internet are factors too. Information on demand. Blogs about financial literacy, stocks etc abound. We can also follow stocks analysts via Twitter and Facebook, stock market is always in the news in the past few years (even taxi drivers and maids talking about it?) Many advertisements in the web selling insurance, investment products, etc.

BSP Guide and Economy and Sentiment

BSP has been making a push to channel trillions of money into other investment vehicles such as UITF and unit-linked insurance (and even stock market) by lowering and tightening the SDA facility. More and more groups also offer personal finance seminars and lectures, investment options etc (such as RFP).

Perceived good economy is also a factor plus the couple of investment grades we got recently. With more people feeling (not necessarily reality) richer and ready to invest, people who have disposable income that they can park in certain investments. Unlike in other major economies we’re seeing where it just keeps on shrinking, where people will definitely be afraid to consume and save and invest given the uncertainties.

Long Way to Go

We are still a long long way though from a strong, financially intelligent population, one wherein our elders will not rely on their children for daily expense once they retire (forcibly, or rather too weak to work) or rely on promises-meant-to-be-broken politicians. Instead they plan it way ahead of time while still in their prime physically and career-wise. Or one wherein we have lots and lots of listed companies available for public ownership (in other countries there are thousands of listed stocks), with lots and lots of educated market investors, and not just speculators.

One Small Step

But this trend is still something to celebrate. Yes, there’s still a lot of work to be done, but who ever said it’s linear? What if the trend is exponential, that we’re just waiting for the tipping point before our financial literacy shoots up? Whatever the trend is, it’s good to know we’re making progress, little by little.


Great things take time to build. Keep on planting, harvest is coming.

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 Filipino Personal Finance Investments For Filipinos

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