CEBU, Philippines - More Filipinos are now starting to save and putting their money in different investment channels with bank deposits still dominating all investment instruments available.
Latest survey conducted by the Bangko Sentral Ng Pilipinas revealed that number of households with savings continued to pick up at 28.9 percent in the first quarter of 2014, compared to 26.2 percent in the previous quarter.
The survey showed the percentage of households with savings increased among the middle-low and low-income groups, but declined for the high income group.
An increasing number of Filipinos are setting aside some amount as savings for the reasons of emergency, health and hospitalization, retirement, education, business capital and investments.
Percentage to those that expected to save money in the first quarter this year increased to 38.3 percent from 34.6 percent in the fourth quarter in 2013.
On the other hand, food spending posted the highest or 97 percent in the first quarter of 2014, among Filipinos who are receiving money from family members who are working overseas.
More than two-thirds or 68.9 percent of the OFW households allocated part of the remittances for education, 62.9 percent for medical payments and 45.9 percent for debt payments.
The percentage of OFW households that utilized their remittances for savings rose to 45.4 percent from 42.6 percent. In fourth quarter of 2013--the second highest percentage since 2007.
Similarly, those that allocated their remittances for the purchase of property increased to 13 percent from 12 percent in fourth quarter last year.
Meanwhile, those that apportioned part of their remittances for investment and purchase of consumer durables and motor vehicles went down compared to the previous quarter's report.
Consistent with the higher spending outlook on basic goods and services in first quarter, consumers anticipated higher inflation in the year ahead.
Consumers expected higher inflation rate to settle at 8.4 percent compared to seven percent in the fourth quarter last year. This indicates the inflationary expectations could be stronger in the next 12 months.
The consumers' views mirrored the increasing trend in the inflation ratings in January (2.4 percent), and February (4.1 percent) as compared to that in fourth quarter last year (3.4 percent). (FREEMAN)