BSP: The habit of saving should start in the family

CEBU, Philippines -  "It is not in our genes. It is a character that you build through the years."

Lawyer Leonides Sumbi, acting director of Bangko Sentral ng Pilipinas Cebu, said stressing that money management should start in the family as it is considered a habit that has to be developed as people age.

The Central Bank said learning the concepts of money, saving, spending and investment are better done at an earlier age. The value of saving and financial management should be taught to children at an early age so that as they grow up, they would learn to develop the skill of financial preparation.

      Dr. Johnny Noe Ravalo, assistant governor of BSP's Financial Supervision Research and Consumer Protection Sub-sector, said the country's low financial literacy rate has good rooms for improvement if financial education in the family level is further stepped up.

"Yung saving mentality kasi hindi naman yan family inheritance. It's a skill that has to be developed. We have to teach our kids on how they can prepare themselves for the future," Ravalo said in an interview yesterday during the launching of Money Matters for Kids exhibit at the central bank's regional office in Cebu.

The program, which is designed for the young people, aims to empower financial consumers in making informed financial decisions and improve their monetary well-being. The November 5 to 14 exhibit demonstrates money-related themes that stimulate economic and financial learning.

The central bank official noted financial education should be made more understandable to ordinary people as it is becoming more important today with the growing monetary resources among employed and earning individuals.

The BSP has already asked the Department of Education and the Commission on Higher Education to incorporate financial education in the curriculum to teach learners on money basics, he said.

Ravalo added that saving money in the piggy bank is not bad but is more of a good starter in establishing the habit of saving. As people accumulate enough wealth and resources, he advised them to tap banks and other investment means to gain value appreciation. (FREEMAN)