5 Habits Why Filipinos Fail to Save Money

No matter who you are, money is essential. Some people are great spenders, while others are frugal. Money is a touchy subject for many Filipinos, particularly when it comes to investing and saving money. Several investment schemes, financial fraud; mentalities; cultural standards; and a lack of knowledge about sound money management plagued the nation. Here are a few habits why Filipinos don’t manage their finances well.

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Courtesy: moneyunder30.com

Lack of Income

Filipinos frequently used the justification that they lacked the income to save. Financial analysts claim that the country’s population is working class; hence the issue is not with money. The real problem is the individual with the salary who spends a lot more than they make. They spend all their money, leaving little or no money for saving. 

Leave it to “Batman” Mindset.

Filipinos are incredibly optimistic people. When going through a financial crisis, they always think things will improve. But you must remember that you must play a part in improving your financial situation. It would rather be best if you got into the habit of writing down every penny you have to spend and then designating the rest for savings. Though optimism is a virtue, you shouldn’t rely solely on good fortune. 

Envy and Jealousy


In the Philippines, we tend to feel sorry for ourselves and consider ourselves beneath someone of a more significant position. We judge ourselves against others and even experience pressure when we cannot purchase fashionable items, even when it is not even necessary since everyone you know already owns one. This “envy” mentality is a harmful quality that causes us to overspend and fail to put money aside for emergencies. 

Too Much Debt

When faced with a dire financial situation, Filipinos turn to debt, or “utang.” If repaid, debt would not be terrible, but if it becomes ingrained in a lifestyle of making payments on it, it will be toxic for handling money. Culture is another factor. Many Filipinos suffer from lifestyle inflation, which can result in debt. The mindset of most common Filipinos is to equate their lifestyle with their income. For example, after receiving their paycheck or bonuses, they also spend to the neck as if there is no tomorrow. To cover the costs in this situation, many turn to debt, which leads to an increase in debt. Savings are next to nothing when you have an obligation because there won’t be much money left after spending. 

Lack of Discipline

Without proper financial discipline, many Filipinos would say “bahala na,” which means “come what may,” which may be similar to the Batman mentality. In actuality, we prioritize our demands in today’s culture by shopping for things we want, visiting new locations, and eating upscale cuisine, only to think “bahala na” for the following few weeks because we favor pleasure over suffering. Not having a diploma is not the reason for this lack of discipline. It is unreasonable to attribute it to a lack of knowledge when many wealthy individuals lack college degrees. Focusing on and putting first the things you need for a better future takes a lot of sacrifice and determination.

There are numerous ways to cut costs. Going against cultural norms, lifestyles, and instant pleasure may initially make managing funds difficult, but it is feasible. Be steady and dedicated if you want to handle your money well and keep saving for emergencies.

Written by: Imee Lariosa, BA English Language Studies, Mindanao State University – Gen. Santos

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