We need financial education! (and it should be taught in schools)

[makie]

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I guess it's safe to say that one of the biggest causes of poverty in the Philippines is the lack of financial education. Here are some things that I have noticed:

1.) We are groomed to have the "employee mindset".
2.) It's a lot easier to spend rather than save.
3.) Our expenses on our "wants" far outweighs the "needs".
4.) When salary goes up, expenses goes up (seriously, why can't a person earning at least P25,000 a month live like a person who's just earning P10,000 a month?).
5.) The number of Filipinos who understand or at least has an idea of what inflation won't even reach half of the population.

If we know how money works, it's very easy to make them grow. Have we ever wondered why high school and college dropouts eventually ended up among the richest people in the world? It's not about diploma or skill, it's because they know how money works. Ironic because people who have finished degrees and professionals are working for these "dropouts".

For students, you are about to enter the real world sooner or later and you'll realize that finances isn't as easy as they are now (when you're still a student). Getting a job and having a good salary isn't the end, you'll need a lot more than that. There are a lot of people (professionals and eve businessmen) out there who are earning really good but still end up either in debt or bankrupt. Knowing how to look for money and knowing how to keep money and knowing or how make money grow are three different things and we need all those three.

I was a student once and for students, getting a good job, passing the board examination, being a professional, and maybe starting a business are just among the very common goals but have we thought of building the right foundation? What we haven't considered is normally what would hit us and unfortunately, financial education, which I believe is as important as developing technical and personal skills, is something what was overlooked.

I am starting this thread to at least open up the eyes of students about financial literacy (which I firmly believe wasn't taught in schools).

What's your thoughts on these guys?

[owrange]

agree on this. but i guess it's just not financial education. it's more like culture change. =)

[masakiton]

agree on this. but i guess it's just not financial education. it's more like culture change. =)

agree.. naa rajud na sa taw
memorizon ang lecsyon sa financial education pero dili i apply..

[Jack Ryan]

I guess it's safe to say that one of the biggest causes of poverty in the Philippines is the lack of financial education. Here are some things that I have noticed:

What's your thoughts on these guys?

1.) We are groomed to have the "employee mindset". - everyone is groomed to be a successful individual and it's up to you to take it to the next level. If you feel like living in paycheck won't provide your wants and needs, then give it another notch. it's your choice.

2.) It's a lot easier to spend rather than save. - what can u save if 70% of your monthly income goes to your credit cards and needs; and the remaining 30% goes to your wants? if a person chooses to give up some of his/her wants and cut credit cards Piggy-Bank would be very happy.

3.) Our expenses on our "wants" far outweighs the "needs". - just what i mentioned above. so saving is out of the question. that goes down to the person if he/she chooses to save or live life to the fullest every paycheck.

4.) When salary goes up, expenses goes up (seriously, why can't a person earning at least P25,000 a month live like a person who's just earning P10,000 a month?). - lifestyle - why wear a shirt worth P50when you can buy a nice shirt worth P500. showing something fancy is another way of showing how successful the person is. again it's a choice not by chance. It's like you're trying to tell P Diddy to not to use your Escalde instead ride a cab.

5.) The number of Filipinos who understand or at least has an idea of what inflation won't even reach half of the population. - Philippine is a 3rd world country and believe most of us understand what is the meaning of being a 3rd world country. - by the way, which inflation are you referring education, agriculture, career etc?

i think it's goes down to "compromise and choice".

ps. we have a very good private schools in the Philippines.

[makie]

@Jack Ryan:

Good points there. However, I'd slightly disagree that it's about compromise and choice. For most people, it's not a choice but rather they simply doesn't know what are the better ways to make more out of their money.

The rich are getting richer and the middle class and the poor remains the same. It's not because the rich have money to start but rather they have the ideas on how to make money in ways that us middle class and poor Filipinos don't know. Most likely the savings that we know are putting our hard earned money in the bank or start a business.

School plays a small part in building a strong financial foundation. Even overseas, financial education isn't given much emphasis on schools. Most of the wealthy people learned their money skills outside school. Formal education gives us a living, self education earns us a fortune. It thus makes real sense why some drop outs eventually turn out to be very well off in life.

@owrange:

Definitely. And for a culture change, we have to discipline ourselves. We'd rather sacrifice now and enjoy later or for the rest of our lives or enjoy what we have now and strive hard for the rest of our lives trying to make ends meet.

[KASAAC]

Right on TS! daghan jud tawo ganahan mo asenso pero dili kamao mo manage sa ilang resources, so we need experts to educate people

[crossramz]

ang akoa lang kay pwede man sad mo mag percentage saving.. like you me for example i allot 10% of my payday salary to saving.. so bisag pila pana cya tungod sa deduction reserve jud na ang 10% nko.. ang da rest pwede na nko i budget forthe next payday.. ang pinaka bati lang tungod kay naa man emergency cases mao mawagtang jud ako savings pero much better nsad kay dili mag labad ako ulo during emergency..

[makie]

The best time to save is when we're still young and definitely now better time than NOW! I firmly believe that people who have developed a strong saving and financial mindset are people who end up enjoying later on in their lives (financially).

Since this thread is focused to develop a saving and financial mindset in students, I would be updating this site from time to time and open up the youth's mind about finances. If we know how money works, we could control our finances but if we don't know how money works, our finances will control us.

For a start, here's a good read.

Top 7 Reasons You Should Invest and Save while You're Young

It is never too early to start investing, only too late. Of course, if you plan on working all your life and never retiring, then you won't need to invest for your retirement. However, there are many unfortunate things that can happen in the later years of your life that may not allow you to work forever (i.e. sickness) so investing early will help avoid financial problems that come up. By starting out with as little as $25 a month, and increasing the amount to greater levels over your lifetime and through the course of your career, you can ensure you come out ahead in the long run. There are many advantages of saving money and investing while you are young.


The Top 7 Reasons to Save Money and Invest While You're Young are:

1.) Slow and Steady Wins the Race- Those who start investing at an earlier age have an easier time reaching their financial goals than those who put off the task. If you are 25 years old and want to retire at the age of 65 you will have to invest less money monthly (although for a longer period of time) than if you are 55 and having to play financial catch up.

2.) Compounding Interest- Imagine if you put money aside monthly that paid interest that would then add onto your principal investment and the next round pay off of new total that was created and so on and so forth. That is the power of compounding interest and with that you can turn a small pittance now into a small fortune later.


3.) Accomplishment- Goals are an excellent motivator and can help people achieve the next level in their careers, and personal or financial life. If you make it your goal to be a property owner by 32 and start investing even small amounts at the age of 22, you will amass enough money to fund the down payment of your house and provide yourself with a true sense of accomplishment.

4.) Save Money on Top of the Money you have Already Saved- Budgeting and living within your means is an essential way to help improve the quality of life as positive behaviors with spending and thrift are often rewarded by increased credit scores. With a higher credit score you will be entitled to the lowest interest rates when you need to finance the purchase of a large ticket item like a car or a home. By investing now, you will be learning those skills that will pay off later.

5.) Retirement- When you are vivacious and young, it is nearly impossible to consider that you will want to slow down one day, but it will happen. By investing when you are young, you will be able to help build your reserves that you will need to live on later.


6.) Expect the Unexpected- The only thing that is predictable about life is that it is unpredictable. By taking the steps now to invest, when the worse does happen (and it will) you will be prepared.


7.) Improve your Spending Habits- You certainly have heard of the foreclosure problems in the U.S. by investing now, you will learn the skill sets imperative for proper money management skills throughout your lifetime.

[dark_humbz]

unsaon nalang ang kwarta ig kamatay~! hehehe!

[masakiton]

basin ma parihas rani sa religious education ... mo kuha sa subject kai requirement sa course.. pero wala halos gi apply sa kinabuhi