Visayans are more savings savvy – survey

MANILA, Philippines - A recent survey by the country’s leading financial organization, Sun Life Financial, showed that majority of Filipinos believe that financial security is defined by having enough money in their savings account. Depositing their hard–earned money in the bank is also how most Filipinos opt to prepare for anticipated life events.

Visayans, as represented in the survey by two hundred respondents from Cebu and Bacolod,  belonging to different social classes (A, B, or C), ranked the highest in terms of respondents who believe that having money in the bank ensures one’s financial security - a total of 44 percent echoed this sentiment, as against 37 percent of the respondents in Mindanao, and 30 percent in the National Capital Region.

Meanwhile, a whopping 91 percent of Visayans also stated that having enough savings in a bank is the best way to prepare for anticipated life events – a far bigger percentage than NCR’s 78 percent and Mindanao’s 71 percent.

However, the monthly budget shows that the bank account ranks low in priority, what with all the other necessities that need to be considered – from food, to house rental or mortgage, to the children’s education.

With this scenario, is depositing money in a bank account actually enough of a strategy these days – even for the savings savvy Visayan – what with the many things that need to be included in every household’s budget?

While it’s great that Visayans have the desire or propensity to save, the problem is that they may not be maximizing their money's earning potential because traditional bank savings accounts typically offer minimal interest rate. Also, the survey results seem to suggest that not a lot of Filipinos diversify in terms of investing their money.

This scenario may not necessarily be due to a lack of interest in other financial instruments because there is actually much interest in purchasing insurance, according to the survey.

For 50 percent of Visayans, life insurance actually ranked among their highest priorities, saying they aim to purchase one in the next two years – more than the number of those who said that a house is their most urgent priority (24 percent); as well as of those who aim to open a business (23 percent).

When it comes to investments, the number of Filipinos warming up to it is growing but still largely unappreciated. Understandably, trying to comprehend the nitty-gritty of investing may seem intimidating at first for a regular Juan.

The variety of options, the abbreviated codes, and the processes can be overwhelming for one merely looking for ways to maximize his money.

But these days, there are resources online that can get one started on their path to being financially literate, such as Sun Life’s microsite, brighterlife.com.ph. Created to inspire and educate Filipinos as they strive to achieve financial freedom, the site is a treasure trove of practical tips, useful information, and inspiring stories.

Also, there are more financial advisors who can introduce Filipinos to how the world of investments works, and guide them thru its ins and outs.

And it’s probably high time for this too. Because while it’s good news that Visayans like to save, it will be an even better scenario when they – and Filipinos in general – open themselves up to other avenues when it comes to growing their money. Substantial knowledge on financial instruments, proper financial planning, and the decision to start planning for one's financial future can lead to a brighter life.

Sun Life Financial is represented in the Philippines  by its life insurance arm, Sun Life of Canada (Philippines) Inc. (SLOCPI); its mutual fund manager, Sun Life Asset Management Co. Inc. (SLAMCI); and its pre-need business distributor, Sun Life Financial Plans Inc (SLFPI).