Scoring only 25 percent in terms of financial literacy, Philippines ranked in the bottom 30 out of 144 countries surveyed according to Standard & Poor’s (S&P Global Ratings) global study. Other neighboring countries such as Singapore and Malaysia scored higher, with 59 percent and 36 percent, respectively.

Financial literacy in the Philippines was generally considered to be low, with a significant portion of the population lacking basic knowledge and skills related to personal finance. However, it is important to note that the financial literacy landscape is subject to change, and recent efforts may have been made to improve financial education in the country.

Several factors contribute to the low financial literacy in the Philippines. One key factor is the lack of comprehensive financial education programs in schools and universities. Many Filipinos do not receive formal financial education during their formative years, leaving them ill-equipped to make informed financial decisions later in life.

Moreover, the prevalence of informal financial systems, such as rotating savings and credit associations (ROSCAs) or informal lenders, can hinder the development of formal financial knowledge. These informal systems, although providing short-term solutions, often lack transparency and can perpetuate a cycle of debt and financial instability.

The lack of access to banking services and limited familiarity with financial products and services are other challenges faced by many Filipinos. According to data from the Bangko Sentral ng Pilipinas (BSP), approximately 51% of Filipino adults were unbanked in 2019, which means they did not have a formal bank account. This limited access to basic financial services makes it difficult for individuals to save, invest, and manage their finances effectively.

However, it’s worth noting that the government and various organizations have recognized the importance of improving financial literacy in the Philippines. Efforts have been made to promote financial education through partnerships between government agencies, non-governmental organizations (NGOs), and private institutions. The BSP, for example, has implemented initiatives like the National Strategy for Financial Inclusion and the Economic and Financial Learning Program to enhance financial literacy and inclusion.

The integration of financial literacy programs into the school curriculum, the development of mobile banking services, and the promotion of digital financial literacy are among the strategies being employed to improve the financial literacy of Filipinos. It is crucial to continue these efforts to empower individuals and enable them to make informed financial decisions for their long-term financial well-being.

Financial literacy among Filipinos has been a topic of concern in recent years. While there are individuals in the Philippines who possess a good understanding of personal finance, a significant portion of the population still lacks adequate financial literacy.

Philippines. The government, in collaboration with various organizations and institutions, has initiated programs and campaigns to promote financial education and inclusion. These efforts aim to provide Filipinos with the necessary knowledge and skills to make informed financial decisions, manage debt, save, and invest wisely.

Additionally, the rise of digital technology and mobile banking in the country has opened up new opportunities for financial inclusion and education. Mobile applications and online platforms now offer accessible resources, budgeting tools, and financial management guidance to help Filipinos improve their financial literacy.

While progress has been made, increasing financial literacy among Filipinos remains an ongoing challenge. Continued efforts to incorporate financial education into school curricula, enhance access to affordable financial services, and raise awareness about the importance of financial literacy are crucial to empower individuals and improve their financial well-being.