Most Pinoys Think They Are Expert in Money According to Survey

I was lucky enough to be present in yesterday’s press con of Sun Life Philippines where they handed over the result of the recent survey  conducted via SOLAR  (Study of Lifestyles, Attitudes and Relationships) FLARe (Financial Literacy Advocacy Reports) to the Insurance Commission. And I must say, that the results of the survey were very revealing on some of the good and not so good traits of us Pinoys when it comes to money matters.

Some of the interesting points from the survey are as follows

• Pinoys are very optimistic. When asked how they expect their financial situation to change in the next 3-5 years, 87% expressed positive feelings.
• 1 out of 5 Filipinos (20%) think they’re money experts but test scores from basic financial literacy quiz showed that only 8% scored above 80% and none scored more than 90%.
• Study shows that when respondents were asked about financial matters, knowledge about inflation got the lowest score.
• “Top personal worry of Juan: personal safety.”
• Juan’s top priorities in the next 2 years: open a business, purchase lot, get life insurance.
• 8 out of 10 Filipinos would put savings in a bank to prepare for anticipated life events. 1 out of 10 would invest.
• 7 out of 10 believe that everyone must have life insurance.
• There’s 1.14% life insurance penetration in the Philippines.

Here’s the Press Release of Sun Life Philippines for a better appreciation of the study.

For the past five years, Sun Life has been conducting a nationwide Study of Lifestyles, Attitudes and Relationships (SOLAR) to gain insights on the public’s attitudes and behavior toward financial matters. This research has been instrumental in helping Sun Life pursue its thrust to raise financial literacy among Filipinos.

Uncovering a Paradox

Conducted during the first quarter of 2013 with 1,100 respondents coming from middle to upper income segments, the findings of this year’s SOLAR have been compiled in an account titled SOLAR FLARe or the Financial Literacy Report. Here, Sun Life discovered that Filipinos are confident about how they manage their finances, with 20% claiming to be an expert. However, test scores from a basic financial literacy quiz revealed a need for them to be educated further as only 8% scored above 80% and no one scored over 90%.

The report also looked into the priorities of Filipinos. When asked how they are preparing for these milestones, 8 out of 10 would rely on bank savings, overlooking other options such as life insurance and investments.

“While SOLAR FLARe reveals a lack of knowledge of some financial concepts, it does indicate an improving attitude towards life insurance. Life insurance is now considered by a third of the respondents as a priority purchase for the next two years,” said Sun Life Philippines President and Chief Executive Officer Riza Mantaring.

Advocating Financial Literacy

SOLAR FLARe upholds Sun Life’s tradition of understanding Filipinos and teaching them how to achieve lifetime financial security. It will be noted that Sun Life launched “It’s Time!” in 2009, the first multi-media financial literacy advocacy in the country, meant to educate Filipinos on financial preparedness.

During the official presentation of Sun Life’s report to the Insurance Commission, Mantaring expressed Sun Life’s desire to strengthen the partnership between public and private sectors in widening the reach of financial education.

 

Just so you know, here are some of the questions asked in the survey. Let’s see how you fair by commenting the number of your correct answers below.

1. Which of the following statements about inflation is false ?
   1. Higher inflation means higher prices of consumer goods
   2. Purchasing power is lower if inflation is high
   3. As inflation rises, every peso will buy a fewer amount of goods.
   4. None of the above
   5. All of the above
2. The formula for a healthy budget should be …
   1. Expense + income = Savings
   2. Income – savings = Expenses
   3. Income – expenses = Savings
   4. None of the above
3. If a savings account has an annual interest rate of 2 percent, how much will a P100,000 deposit earn after a year?
   1. P2
   2. P20
   3. P2,000
   4. P20,000
4. Which of the following can be considered an asset?
   1. Cash
   2. Credit
   3. Utility bills
   4. All of the above
   5. None of the above
5. Which of the following can be considered a debt?
   1. Insurance
   2. Loan
   3. Real estate
   4. All of the above
   5. None of the above
6. Which of the following can be considered an investment?
   1. Stocks
   2. Taxes
   3. Revenue
   4. All of the above
   5. None of the above

 

 

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