Gen Z In The Philippines: Breaking Down Barriers To Financial Illiteracy | Money Mind | Adulting

Summary

Filipino content creator Charm de Leon aims to revolutionize financial management in the Philippines by advocating for open discussions on money. Despite personal finance being a taboo topic, she shares her journey of tripling her savings and building multiple income streams. A 2015 World Bank report revealed low financial literacy among Filipinos, but the COVID-19 pandemic has prompted a shift towards financial prudence. The percentage of adults with bank accounts has doubled, and e-wallet usage has surged, especially among millennials and Gen Z. The script features Tyrone, a young man juggling a full-time job and side gigs to support his extended family, reflecting a broader trend of younger generations starting to save and invest earlier.

Takeaways

• 💡 Charm de Leon is a Filipino content creator focused on changing how Filipinos manage their money.
• 💰 She advocates for the 'income minus savings equals expenses' approach to personal finance.
• 📈 Charm began her financial journey by sharing how she tripled her savings and developed 11 streams of income.
• 🛑 Discussing money and finances is still considered taboo in the Philippines, including topics like earnings and investments.
• 🏫 Financial literacy in the Philippines is low, with only 25% of Filipinos being financially literate, according to a 2015 World Bank report.
• 🌍 The COVID-19 pandemic has changed how Filipinos view their finances, prompting more focus on essential spending and financial preparedness.
• 📱 Post-pandemic, the number of Filipinos with bank accounts almost doubled, with over 58 million now active e-wallet users.
• 👨‍👩‍👧‍👦 Many young Filipinos, like 23-year-old Tyrone, financially support their extended families, a common challenge in Filipino households.
• 👶 Gen Z Filipinos are starting to save and invest at younger ages compared to Millennials, with the fear of running out of money being a top concern.
• 🏠 Tyrone, working two jobs and taking out a loan for a motorbike, aims to improve his family's financial situation and dreams of buying his own house.

Q & A

Who is Charm de Leon and what is her mission?

Charm de Leon is a Filipino content creator aiming to change the way her fellow Filipinos manage their money by openly discussing financial matters and promoting financial literacy.

What financial practice does Charm de Leon emphasize?

Charm de Leon promotes the practice of 'income minus savings equals expenses,' encouraging people to prioritize savings before spending.

Why is talking about money considered taboo in the Philippines?

Money is considered a taboo topic in the Philippines because asking about salaries, investments, and net worth is culturally sensitive. Many Filipinos feel uncomfortable discussing personal finances openly.

What does Charm de Leon believe is one of the reasons for low financial literacy in the Philippines?

Charm de Leon believes that low financial literacy in the Philippines is partly due to personal finance not being actively taught in schools, with most children learning financial habits from their parents, who may not be financially literate themselves.

How did the COVID-19 pandemic impact the financial habits of Filipinos?

The COVID-19 pandemic made Filipinos more mindful of their finances, teaching them to prioritize essential needs over wants and to prepare for future uncertainties.

What change occurred in the banking habits of Filipinos post-pandemic?

The percentage of Filipino adults with bank accounts nearly doubled after the pandemic, and over 58 million Filipinos became active users of e-wallet apps.

Which demographic has driven the growth of e-wallet usage in the Philippines?

Millennials and Gen Z Filipinos have been the primary drivers of the growth in e-wallet usage in the Philippines.

What is the 'sandwich generation,' and why is it significant in the Philippines?

The 'sandwich generation' refers to Filipinos who financially support both their children and their parents. It presents both financial and emotional challenges for many families.

What advice is given to young Filipinos to achieve financial prosperity?

The advice given is to 'earn more and spend less,' which can be achieved by upgrading skills, having freelance jobs or side hustles, and developing multiple sources of income.

What are Tyrone Ildefonso’s financial goals, and how is he working toward them?

At 23 years old, Tyrone Ildefonso’s financial goal is to buy his own house. He works a full-time job as a call center agent, has a side gig at a sports stadium, and recently took a loan to buy a motorbike to generate extra income.