SWS: 9 out of 10 Pinoys are broke

CEBU, Philippines - A survey conducted by the Social Weather Stations with Sun Life Canada (Philippines) Inc. revealed that for the past year, nine out of 10 Pinoys suffered financial shortage citing the rising prices of daily basic needs as the main cause.

The figures seem to suggest that most of Filipinos are still struggling to cope with financial problems, Sun Life Chief Marketing Officer Mylene Lopa said during a press conference yesterday.

Lopa noted the inflation rate and the unexpected expenses have an apparent effect on finances, although saying that a proper financial planning can surely help people maintain a healthy monetary condition.

“We should prepare for inflation ahead of time as much as we can,” the marketing officer said.

Seventy four percent of the 1,200 adult respondents surveyed said they had shortage in household expenses; 41 percent attributed it to school fees; 25 percent said they lacked money for medical costs; and the other 25 percent admitted they had no enough to pay for loan payments.

The study, conducted last March 27 to 30 with First Quarter 2014 SWS, also suggested that seven out of 10 Filipinos said inflation is the top reason for the shortage; four out of 10 also said they were earning less; three out of 10 pointed to the unexpected expenses as the cause; and one out of 10 admitted they were not able to plan well.

In addition, Lopa shared the ways these people have taken to solve the shortage, saying seven out of 10 Filipino adults said they promised to cut their spending; four in 10 suggested they would look for other sources of income; while others have found borrowing money from relatives, friends, lenders and property selling as the possible answers to the problem.

The survey has also indicated the financial shortage or “kakapusan” rate in National Capital Region is at 91 percent Visayas get the same rate and Mindanao is at 89 percent.

‘Invest for the future’

The insurance official advised people to keep their spending in check always and to have emergency fund whether through savings or insurance policy.

She said this would provide them protection in times of unexpected events and disasters.

The survey’s respondents did not even mention ‘investing’ as one of their solutions to money problems, she also added, noting that this seems to show a lot of people are still not considering this choice.

“We hope to change this notion because we would like to see more Filipinos enjoy the benefits of having their money work harder for them,” she said.

Lopa emphasized saving, getting insured and investing are good ways to prevent from being ‘kapos’.

Sun Life, an international financial services group, declares June as the Financial Independence Month with its intention to urge and help Filipinos look for solutions for financial setbacks.  (FREEMAN)