Being financially literate means avoiding spending money you do not have, and maximizing money that you do have to achieve your short-term and long-term goals.
Alas, many Filipinos struggle with financial literacy. According to a 2015 World Bank survey, with the Philippines lagging behind in the region at 25% compared to 59% in Singapore, 52% in Myanmar, and 36% in Malaysia.
Thankfully, there are many ways to become financially literate. According to UnionBank, you can educate and train yourself so you can turn your financial woes into wins.
Woe: There are a lot of daily necessities and monthly dues so there’s no room to save or spend on personal wants.
These can be overwhelming to manage and there is a tendency to pour all resources there.
Win: Budgeting is one way to manage finances. It allows you to look into your expenses, reallocate funds to ensure needs are met, and make room for wants. This way, you can spend on both important things and little luxuries and rewards for yourself every now and then.
UnionBank Online makes budgeting easier since you can settle and schedule payments, send prepaid load for your phone and e-wallets in real-time, and save up weekly, monthly, or quarterly using the Goals feature for the rewards or luxuries that you want.
Tracking and organizing
Woe: It’s easy to get lost in all your transactions—and keeping track of them, especially if there are too many accounts to look at, can be daunting.
Win: Tracking and organizing your accounts and transactions allow you to have better view of your finances, stay within your budget, and prevent financial mishaps.
With UnionBank Online’s Spend Tracker, your credit card expenses are automatically categorized on a monthly basis, helping you see if there is still room to spend. For your savings accounts, the app has a unified view so you can quickly and easily browse balances. Tap into each account to access your transaction history. It even allows you to lock your physical card to avoid unauthorized use or prevent you from overspending.
Investing in the future
Woe: Investments and insurance can be intimidating because of the price tags that come with them. Because they can be pricey, they become additional expenses that don’t fit into the budget.
Win: Understanding the value of investing in the future is also part of being financially literate. You are not only preparing for what is up ahead, but also for how it can impact others.
At an affordable price, you can invest through Unit Investment Trust Fund (UITF) on UnionBank Online and let professionals help grow your money. For protection in case of emergencies, UnionBank Online partnered with Inlife to offer a variety of Life and Accident insurance plans that you can choose from to ease any unforeseen financial burdens.
Financial literacy matters because it helps you get past your financial woes and allows you to make better money decisions every day. Budgeting, tracking and organizing finances, and investing in the future are just some of the habits that will surely make an impact on your future.