Metro Manila middle-class millennials, Gen Zs turn to loans, savings due to inflation

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MANILA, Philippines — A survey conducted by the Nomura Research Institute Singapore in Manila has found that middle-class millennials and Gen Zs have immense concern over the growing impact of inflation.

The survey conducted during the second quarter of 2023 showed that 94% of respondents felt the effects of inflation, particularly between May and June.

Young adults have had to make cuts in their non-essential spending, including leisure and entertainment expenses, because of the rising costs of food, transportation, fuel and utilities like electricity, water and internet bills.

Specifically, 83% of respondents reduced their non-essential goods expenses, while 79% found it necessary to cut back on leisure and entertainment expenses.

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Price increases for food and beverages had the most impact on the respondents at 60%, followed by transportation and fuel at 15% and utilities at 14%

When it came to financial challenges, nearly one-third of respondents were unable to save over the past six to 12 months, and those who did (44%) were only able to save a lower percentage of their income.

These challenges resulted in 71% of participants having outstanding loans, with 30% of those being personal loans while alternative installment loans and salary loans tied for 19%.

More than half of individuals cut back on expenses to meet loan obligations, while 19% were forced to delay payments.

For savings, 34% of participants plan to increase allocations for future preparations, while 33% will maintain their current savings pattern. However, 16% still plan to reduce their monthly savings allocation.

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