The Department of Trade and Industries (DTI), together with Bangko Sentral ng Pilipinas (BSP), Landbank, and Securities and Exchange Commission, launched an investment webinar for Filipinos around the world that discussed financial management, investment, and monetary security last 2 July 2021.
In the second episode of the Trabaho, Negosyo, Kabuhayan (TNK) webinar series, Sarah L. Padilla, Bank Officer V from BSP, talked about the “Pinansyal na Talino at Kaalaman” (PiTaKa) Tips that the Bangko Sentral introduced last 2019. PiTaka Tips is BSP’s campaign with Overseas Workers Welfare Administration (OWWA) and BDO Foundation to provide financial education to Filipinos globally.
The six PiTaka Tips
1. Register with OWWA
The BSP encourages Filipinos abroad to register as official members of OWWA. Any member of the said national government agency will be provided with benefits, as well as their immediate beneficiary. These benefits include social benefits, education and training benefits, welfare programs, reintegration programs, and repatriation assistance benefits. To be a member, you are required to fill up the OWWA information sheet and submit the requirements that can be found on their official website.
2. Open a bank account
BSP reiterates the importance of opening a bank account in order to successfully save money. Aside from having the privileges of deposit insurance, saving in banks secures the safety of your money and its growth due to the interest. The BSP encourages everyone to open a bank account, even at an early age.
3. Settle your debts ASAP
The speaker highlighted the importance of paying your liabilities as soon as you can. Clearing out all debts will help to allocate your money to more important things. Delaying payment increases your debt due to incurred interest. Once all liabilities are settled, all incoming money will only be rationed to your savings, wants, and needs. There are various ways to pay debts such as debt stacking, debt snowball, and loan restructuring.
4. Save 10% of your income
The importance of saving was highly emphasised in the webinar. BSP advised the attendees to save 10%, at least, of their income. This 10% is advised to be deposited in banks where it can grow depending on your account. All legitimate banks in the Philippines are overseen by the BSP.
5. Save or invest 10% of remittances
Aside from personal savings, it is advised to have family savings. Opening up a business is also considered an investment. Business is another advisable way to grow money. Putting it up must be highly considered especially that it can be a safety net during financial emergencies.
6. Refuse unnecessary purchases
Choosing intelligently when and where to spend money is a major key to saving successfully. It is imperative for Filipinos, no matter where they are, to not give in to unnecessary requests of family members and relatives. Knowing your priorities will help you save for the future.
These PiTaKa Tips from BSP and their partners are just the beginning to financial education. There are lots of things to learn and unlearn in order to handle money wisely. The Trabaho, Negosyo, Kabuhayan (TNK) webinar series also discussed retirement plans and the stock market. To know more about these, you can check the DTI Philippines page on Facebook and stay updated regarding the upcoming webinars about financial literacy. You can also watch the replay of their previous webinars on DTI Foreign Trade Service Corps’ Facebook page.
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